CyanConnode Holdings (LON:CYAN) has delivered a robust first half to FY2026, showcasing its momentum and growing strength in the smart metering sector. According to a recent research note by Zeus Capital, revenue surged by 31% to £7.4 million in the six months to 30 September 2025. On a constant currency basis, growth was even more impressive at over 40%, reflecting a significant increase in shipments and solid execution across key markets.
This period marked a sharp rise in unit deliveries, with shipments jumping by 137% year-on-year to 893,000 modules. This increase contributed to a cumulative total of around 5 million units shipped in India, leaving a healthy backlog of approximately 9 million units. As these units are activated, CyanConnode is expected to benefit from rising recurring software and services income.
One of the most exciting developments is the company’s £70 million contract in Goa, secured during the first half of the year. This marks the first time CyanConnode will act as an Advanced Metering Infrastructure Service Provider (AMISP). While revenue from this major contract was not included in the H1 results, it is expected to begin contributing in the current quarter and become a significant revenue stream moving forward.
The company continues to operate with a substantial contracted order book of around £157 million. Although slightly lower than previous announcements due to currency effects, it still stands at a multiple of historic revenues. Zeus Capital highlights that “CyanConnode remains well positioned in a large market and Management expects strong revenue growth in FY26.”
From a market opportunity perspective, CyanConnode has identified two complementary business models. The Serviceable Available Market (SAM) for its AMISP model is estimated at £837 million, while its communications module business targets a SAM of £254 million. Based on management’s achievable expectations, the Serviceable Obtainable Market (SOM) over the next 18 months stands at £186 million and £45 million respectively.
To support this anticipated growth, CyanConnode has raised $15 million in convertible debt across two tranches in May and July. These funds are bolstering the company’s working capital, ensuring it is well-equipped to fulfil upcoming contracts and scale operations effectively.
Highlights from H1 FY2026:
- Revenue up 31% to £7.4 million, or 40% on a constant currency basis
- Shipments increased 137% to 893,000 modules
- £70 million AMISP contract in Goa secured, revenue to start in Q3 FY2026
- Order backlog remains strong at c. £157 million
- Serviceable Obtainable Market estimated at £231 million over the next 18 months
- Raised $15 million in convertible debt to fund growth
In Closing
CyanConnode’s performance in the first half of FY2026 reinforces its strategic positioning and operational capability. With a strong order book, new high-value contracts such as the Goa AMISP project, and a significant addressable market, the company appears poised for further growth. As Bob Liao, CFA, notes in the research, “CyanConnode remains well positioned in a large market and Management expects strong revenue growth in FY26.”
Investors will be watching closely for the upcoming interim results expected in November, which may provide further confirmation of CyanConnode’s upward trajectory.
