Grid-scale battery storage became Star Seeds’ most profitable segment in the fiscal year ended February 2026, prompting the company to begin disclosing the business separately as it expects further growth.
According to the company’s annual securities report released on June 1, 2026, the segment recorded 2.23 billion yen in revenue and 477 million yen in profit in the fiscal year ended February 2026, becoming Star Seeds’ primary earnings driver and helping it return to annual profitability for the first time since the year ended February 2019. By comparison, its apparel segment generated 5.25 billion yen in sales and a 124 million yen segment loss.
Star Seeds said the revenue was generated through the sale of projects, some of which were originally acquired for long-term ownership but later reclassified as held for sale following interest from potential acquirers. Based on previous disclosures, the company appears to have divested three to four completed 2MW/8MWh facilities during the fiscal year, implying an average transaction value of about 560 million yen to 740 million yen.
The company said it has not yet set quantitative targets for the business but plans to establish them in the future based on the number of projects developed and total capacity. It identified increasing grid-connection timelines and costs exceeding expectations at times, higher equipment prices, and changes in policy and regulation potentially affecting revenues among key risks.
Originally focused on online and brick-and-mortar fashion retail, Star Seeds entered grid-scale battery storage in 2025 through a partnership with hospital and nursing home operator Sumirekai Group and the acquisiton of its first asset from JPN ENERGY Integrated System. The company’s shift from a hold-to-own strategy toward project sales comes amid growing interest in the sector from both existing energy-industry participants and new entrants.
