Japanese IT consulting leader BayCurrent unveiled a new mid-term plan on October 15, targeting sales of 50 billion yen by fiscal 2030. The firm aims to boost EBITDA margins to 40%, driven by strong AI demand that allows it to revise shareholder return policies with flexible share buybacks.
BayCurrent continues rapid growth fueled by surging AI-related demand and increased attention to cybersecurity and defense sectors. Progress against the current mid-term plan (targeting 250 billion yen in sales and a 30-40% EBITDA margin by FY2028) is advancing significantly ahead of schedule, with full achievement expected roughly one year early in the next fiscal year (FY2027).
In response to this momentum, the new mid-term plan sets ambitious long-term goals for corporate value enhancement:
| Metric | FY2026 (Opening Guidance) | FY2030 (New Plan) | FY2035 (Growth Roadmap) |
|---|---|---|---|
| Sales | 190 billion yen | 500 billion yen | 1 trillion yen |
| EBITDA | 66.5 billion yen | 200 billion yen | 450 billion yen |
| EBITDA Margin | 35% | 40% | 45% |
| EPS | 323.79 yen | Approx. 1,000 yen | Approx. 2,500 yen |
| Market Cap (Est.) | Up to 1.5 trillion yen | Approx. 5 trillion yen | Over 10 trillion yen |
By FY2030, BayCurrent plans to strengthen its profit structure by raising the EBITDA margin to 40% and targeting a return on equity (ROE) of approximately 80%. The long-term roadmap aims for sales of 1 trillion yen and an EPS of roughly 2,500 yen by FY2035. The company also projects a market capitalization exceeding 10 trillion yen in FY2035, assuming a price-to-earnings ratio of 30 to 40 times.
This plan aims for sustainable corporate value growth by steadily capturing structural expansion in domestic demand under disciplined capital policy.
The new mid-term plan rests on three main pillars. First, business expansion. As needs from major domestic clients shift from simple AI implementation support to comprehensive organizational transformation toward AI-native structures, BayCurrent will scale its operations. The company will also tap into new demand in cybersecurity, defense, energy, and semiconductors linked to national policies.
Second, profitability enhancement. BayCurrent aims to increase value-added through CxO-level engagement for enterprise-wide AI transformation and direct reach to management challenges. Simultaneously, it will reduce costs through rigorous internal AI utilization of productivity gains, targeting a backlog ratio of around 50% to stabilize earnings.
Third, global expansion. To support domestic clients' overseas needs, BayCurrent will progressively expand its office network and satellite offices. By FY2030, the plan targets an international revenue share of approximately 20%, establishing partnerships with local key firms to create new revenue sources.
To solidify its position as a "comprehensive partner that leads advanced markets as a core player in each industry and supports sustained growth," the firm is also focusing on alliances with AI platform formers and acquiring specialized talent.
To support its growth strategy, BayCurrent has revised its previous shareholder return and capital allocation policy. Previously, the company fixedly allocated approximately 15% of expected sales revenue for future growth investments on top of working capital (approx. 25%). This fixed allocation will now be eliminated.
Under the new policy, cash reserves will focus solely on operational funds (approx. 25% of expected sales), with excess cash flexibly allocated to either future growth investments or share buybacks. This ensures agility in responding to opportunities such as M&A, capital ties with key clients (e.g., joint ventures), and building overseas support structures.
| Item | Old Policy | New Policy |
|---|---|---|
| Dividend Payout Ratio (Target) | 40% (IFRS basis) | Unchanged (40% IFRS basis) |
| Cash Reserve Level | Up to approx. 40% (25% ops + 15% growth) | Approx. 25% (Operational funds only) |
| Excess Cash Use | Primarily shareholder return | Flexible growth investment or Share buybacks |
The dividend policy remains unchanged, targeting a payout ratio of 40% on an IFRS basis. For the current fiscal year, BayCurrent plans to pay an interim dividend of 65 yen per share and a final dividend of 65 yen, totaling 130 yen per share.
By codifying the use of excess cash for share buybacks, the company aims to balance capital efficiency maximization with signaling confidence to the stock market.
Analyst take
The core of this disclosure is not merely raising numerical targets but transitioning to a capital policy suited to BayCurrent's growth stage. Eliminating the fixed budget for growth investments removes the risk of sunk costs, allowing flexible allocation based on market conditions. While achieving the current mid-term plan remains highly probable given sustained AI demand, the FY2030 sales target of 50 billion yen represents the company's largest scale to date, warranting close scrutiny of execution capabilities. As the share of overseas revenue grows, resilience against currency risks will be tested, but maintaining a 40% EBITDA margin should provide near-term support for the stock price.
