ISDN Holdings Posts Stellar First Half as Automation Boom Lifts Revenue to Record High

Singapore's ISDN Holdings has plenty to celebrate this earnings season. The industrial automation specialist closed out the first half of fiscal 2026 with revenue hitting an all-time high of S$253.6 million — a 19.1% jump from the same period last year.

But the headline number barely tells the whole story. Net profit came in at S$10.4 million, a staggering 707% surge year over year. That kind of growth doesn't happen by accident.

The real engine behind the outperformance? Industrial automation. The segment, which now accounts for nearly 94% of total revenue, grew 31.9% to S$238 million. China remains the crown jewel, contributing 71.3% of the segment's revenue, but the company is seeing broad-based strength across most of its addressable markets.

Not everything went according to plan. The renewable energy side of the business — a modest 6.1% of total revenue — took a 52.1% hit, falling to S$15.6 million. The culprit? Two mini-hydropower plants in Indonesia, Lau Biang 2 and Lau Biang 3, are nearing completion, which meant less construction income to book.

Still, the bottom line got a major boost from improved margins. Gross profit climbed 24.9% to S$63.1 million, thanks to a richer product mix and better project execution. Meanwhile, other operating expenses plunged 92% — from S$7 million to just S$562,000 — largely driven by sharply lower foreign exchange losses.

Looking ahead, managing director Teo Cher Koon struck an optimistic but measured tone. The order book has more than doubled from a year ago, fueled by demand from AI applications, data centres and semiconductor end-markets. "We believe ISDN has developed the right capabilities, in the right markets, with a solid long-term strategy for growth," Teo said, while acknowledging the need for disciplined investment in a volatile macroeconomic environment.

Investors seemed to like what they saw — shares closed 2.21% higher at 69.5 cents on the day of the announcement. For a company that's been quietly building its automation arsenal across Asia, the first-half numbers suggest the strategy is finally paying off in a big way.