CyanConnode Triples Order Book to £180m Amid Goa Contract Win Despite Revenue Dip

• India Order Surge: Won orders for 7.7 million modules in FY25 (vs. 2.7m in FY24), taking the cumulative book to 14 million.
• AMISP Empanelment: Their Indian subsidiary, DigiSmart, is now formally empanelled as an AMISP for both RF and cellular tech, unlocking future bidding potential.
• Q1 FY26 Shipment Surge: A telling indicator of recovery – 568,000 modules shipped in Q1 FY26 vs. just 170,000 in Q1 FY25. That’s a 234% jump.
• MENA Expansion: Established a UAE subsidiary and secured a >$1m follow-on order for cellular gateways in the region.
• APAC Progress: Advancing projects in Thailand (Smart Metro Grid live), and engaging utilities in Malaysia and Indonesia.

Financial Fortification & The Road Ahead

Cash is king, especially when executing big contracts:

• Strengthened Balance Sheet: Cash & financial assets stood at £5.8m at year-end (Mar ’25), up sharply from £0.8m, bolstered by:
  • A £5.4m equity raise (Sept ’24).
  • A £5m short-term loan from shareholder Axia (repaid in June ’25).
• Convertible Loan Notes: Post-period, secured $15m (£11.5m-ish) via convertible loan notes. Part repaid the Axia loan, the rest fuels working capital and growth.
• Losses Narrowing: Operating loss decreased to £3.8m (FY24: £4.2m), and Adjusted EBITDA loss held steady at £2.8m despite the revenue dip, thanks to the improved margin.

The Outlook: Cautious Optimism

Cronin & team are signalling a return to growth:

• Deployment Acceleration: The Q1 shipment surge and the Goa project kick-off are key.
• Policy Tailwinds: India’s smart meter target is reportedly increasing from 250m to 330m. Time-of-Day tariffs are rolling out nationwide, requiring smart meters.
• Transparency Pledge: Acknowledging forecasting difficulty, they’ll provide quarterly updates – a welcome move for investors.
• Funding Flexibility: The convertible loans and innovative Goa funding structure provide breathing room. Further working capital facilities (especially in India) are being explored.

The “Going Concern” note reflects the inherent cashflow challenges of rapid growth and large infrastructure projects, but the directors express reasonable confidence based on their forecasts and funding.

The Verdict: Building for the Long Haul

FY25 was a year of strategic repositioning for CyanConnode, overshadowed by temporary Indian market delays. The revenue dip is disappointing but clearly explained and seemingly transient. The real story is the explosive growth of their order book, the transformative AMISP win in Goa, and the significant steps taken to secure funding and operational capacity for delivery.

The shift to being an AMISP is profound. It moves them up the value chain, promises significantly higher long-term margins, and embeds them deeper within India’s crucial smart grid rollout. The £180m order book provides massive visibility, and the Q1 shipment jump suggests the logjam is breaking.

Execution is now the name of the game. Delivering on the Goa contract smoothly, converting more of that massive order book into recognised revenue, and managing cashflow through this growth phase are the key challenges. If they can navigate these, FY26 and beyond look significantly brighter. One to watch closely.