H1 FY 2026: 32% revenue growth as India’s smart meter rollout hits its stride
CyanConnode’s interim numbers show a business riding a powerful tailwind from India’s accelerating smart meter programme. Revenue rose 32% to £7.4 million in H1 FY 2026, with hardware shipments stepping up sharply and a flagship £70 million AMISP contract in Goa now moving towards revenue recognition.
There are moving parts to watch – margins compressed, FX hurt the P&L, and working capital is tight – but the contracted order book is up to £157 million and the near-term pipeline in India is big. For retail investors, the direction of travel is clear: scale is building, and the strategy is shifting CyanConnode from subcontracting to owning more of the value chain via AMISP projects.
Key numbers from the H1 FY 2026 update
| Revenue | £7.4 million (H1 FY 2025: £5.6 million) |
| Gross profit / margin | £1.9 million, 25% (H1 FY 2025: 41%) |
| Operating costs | £5.0 million (driven by £0.9 million FX losses) |
| Operating loss | £3.0 million (H1 FY 2025 loss: £2.1 million) |
| Adjusted EBITDA | £1.9 million loss |
| Loss per share | 0.86p |
| Cash and cash equivalents | £1.6 million |
| Bank overdraft | £5.844 million |
| Order book | £157 million (30 September 2025) |
| Omnimesh modules shipped | 893,000 (H1 FY 2025: 377,000) |
| Goa AMISP contract | £70 million (fully funded and resourced via partner) |
| MENA cellular gateways order | £1.2 million |
| Cash received from customers | £7.4 million |
India’s RDSS acceleration is the core growth driver
India is CyanConnode’s engine room, and the market backdrop is improving. Over 40 million smart meters have been deployed across India as of October 2025, with 223.7 million consumer meters sanctioned under the government’s RDSS programme and a long-term target of 250 million. Policy tweaks help too – customs duty on smart meters has been cut from 25% to 20%, and the Union Budget 2025-26 allocated approximately £1.32 billion to support deployments.
Crucially, installation rates are speeding up. From 11,000-12,000 meters per day historically, the pace hit 80,000 per day in January 2025, with expectations to reach 100,000 per day. That momentum is visible in CyanConnode’s shipment profile: 893,000 modules shipped in H1 versus 377,000 in the same period last year across 17 live projects.
Why the £70 million Goa AMISP contract matters
April’s win in Goa – CyanConnode’s largest contract to date – nearly doubled the order book to £157 million. It’s also strategically significant: by acting as AMISP (Advanced Metering Infrastructure Service Provider) through its DigiSmart subsidiary, CyanConnode moves up the value chain from subcontract hardware and comms to a fuller service solution.
Two points stand out. First, the Goa project is fully funded and resourced via an agreement with a sector specialist multi-national contractor, so no further capital is required by the Group for that project. Second, the company says Goa is expected to become revenue generating in H2 FY 2026, making it a likely contributor to near-term trading.
Margins are down now – but management flags a path back up
Gross margin fell to 25% from 41% due to mix and pricing. More low-margin hardware shipped in the period, software and services made up a smaller share of revenue, and certain contracts were priced lower in anticipation of new, lower-cost products arriving.
Management expects margins to improve as deployments include the FG28 module, cellular modules and In-Meter Gateways. The latter should substantially reduce gateway installation and maintenance costs. The Group is targeting overall project margins of upwards of 35% once these new products are in flow, noting that margins vary across a project’s life – typically lower in the first two years when hardware dominates.
Funding and liquidity: bolstered by CLNs, but working capital remains tight
During the half, CyanConnode raised $15 million via two 7% convertible loan notes to support working capital and contract pursuit. After period end, a further $5.25 million CLN was issued to provide deposits (EMDs) for AMISP tenders. Repayment for the two $7.5 million notes falls between 2028 and 2030, with conversion rights if not repaid; the new $5.25 million note has a 60-month term on similar economics.
On the balance sheet, cash and cash equivalents were £1.6 million at 30 September 2025, and £6.0 million is held on deposit to secure an Indian overdraft facility of the same amount. The bank overdraft stood at £5.844 million. Cash received from customers was £7.4 million in the half, but operating cash outflow was £9.1 million and receivables increased, including non-current contract assets at £6.0 million.
The prior year audit highlighted a material uncertainty around going concern. The Board says detailed cash flow scenarios, letters of credit, and recent funding provide sufficient headroom for at least 12 months from approval of the report, while acknowledging those uncertainties.
Beyond India: steady progress in MENA
Outside India, CyanConnode delivered a £1.2 million follow-on order for cellular gateways in the Middle East and North Africa during the period, with revenue fully recognised. It continues to pursue near-term opportunities across APAC and the Middle East.
Pipeline depth: £231 million SOM in the next 18 months
The Indian opportunity remains large. Management sizes the AMISP Total Addressable Market at approximately 104.9 million meters worth an estimated £9.8 billion that have been sanctioned but are yet to be awarded. DigiSmart’s Serviceable Available Market is around 9 million meters worth £837 million, while CyanConnode’s communications-only SAM is about £254 million.
Over the next 18 months, the Serviceable Obtainable Market is estimated at £186 million for DigiSmart AMISP and £45 million for communications-only work – a combined £231 million near-term pipeline to go after, on top of the £157 million contracted order book.
Governance and operations: strengthening for scale
The company separated the Chair and CEO roles in May 2025, appointing Björn Lindblom as Non-Executive Chairman and enabling John Cronin to focus on execution as Group CEO. That’s a sensible governance step for a business entering a scale-up phase with 17 live projects and AMISP ambitions.
What I’m watching next
- Goa contract – timing and scale of revenue recognition in H2 FY 2026.
- Gross margin trajectory – evidence of uplift as FG28, cellular modules and In-Meter Gateways ship.
- Cash conversion – collections against the rising receivables base and net working capital discipline.
- Further AMISP wins – deploying the $5.25 million EMD capital into contract awards.
- FX impact – managing currency volatility after £0.9 million losses in the half.
- Going concern – delivery against the cash flow plan and funding flexibility.
- Investor Presentation – slated for Q4 FY 2026 after Q3 closes on 31 December 2025.
My take
This is a solid operational step forward. Shipments and revenue are up, the order book is strong, and Goa could be an inflection point as CyanConnode matures into an AMISP player. The Indian policy backdrop is supportive and installation rates are finally matching the ambition.
The flip side is near-term margin compression and a tight working capital position that leans on convertible funding and overdrafts. That makes execution and cash collection critical in H2. If margin recovery shows through and Goa ramps cleanly, the investment case strengthens materially. For now, the growth runway is there – and CyanConnode looks better placed to run it.
