This article first appeared on GuruFocus .
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Revenue:INR 1,235 million, an increase of 15% over the same quarter last year.
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Adjusted EBITDA:INR 3,005 million, an increase of 42% over the same quarter last year.
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Profit for the Quarter:INR 65 million.
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Capital Expenditure:INR 6,708 million during the quarter.
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Cash Balance:INR 4,597 million at the end of the quarter.
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Network Services Revenue Share:39% of total revenue.
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Data Center Co-location Services Revenue Share:42% of total revenue.
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IT Digital Services Revenue Share:19% of total revenue.
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Data Center Capacity Sold:5-megawatt during the quarter.
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Fiber Nodes:1,238 nodes, a 7% increase over the same quarter last year.
Release Date: July 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sify Technologies Ltd ( NASDAQ:SIFY ) reported a 15% increase in revenue over the same quarter last year, reaching INR1,235 million.
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Adjusted EBITDA saw a significant rise of 42% compared to the same quarter last year, totaling INR3,005 million.
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The company sold 5 megawatts of data center capacity during the quarter, indicating strong demand for its services.
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Sify Technologies Ltd ( NASDAQ:SIFY ) continues to invest in capacity expansion, network modernization, and technology platforms to address emerging demand from AI, cloud, and data-intensive workloads.
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The company is strategically expanding its presence in Tier 2 and Tier 3 cities with plans to build 10 to 12 edge data centers over the next few years.
Negative Points
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The company's profit for the quarter was relatively low at INR65 million, despite the increase in revenue.
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There was a one-off impact on margins due to a power tariff revision for one of the facilities, affecting the data center business.
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The digital services segment reported a negative EBITDA, with a decline in revenue on both a year-on-year and quarter-on-quarter basis.
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Sify Technologies Ltd ( NASDAQ:SIFY ) anticipates higher capital expenditures for the remainder of the year, which may impact cash flow.
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The timing for the Sify Infinite spaces IPO remains uncertain, with the company awaiting market conditions to improve before proceeding.
Q & A Highlights
Q: Do you have an update on the potential timing for the Sify Infinite spaces IPO? A: M. P. Vijay Kumar, Chief Financial Officer, stated that the bankers are evaluating the right market conditions for the IPO. The company is ready to proceed once advised by the bankers.
Q: How much capacity is currently live and operational, and what is the design capacity of existing data centers? A: Raju Vegesna, Chairman and CEO, mentioned that the designed capacity is 188 megawatts, with 134 megawatts operational. An additional 100 megawatts will be delivered this fiscal year, and 150 megawatts are under construction.
Q: Do you expect CapEx to remain at the current level for the rest of the year? A: Raju Vegesna indicated that CapEx is likely to increase as they prepare to deliver more capacity to customers.
Q: What are the primary differentiators for Sify in the market? A: Raju Vegesna highlighted Sify's long-standing market presence, strategic locations in key markets, integrated data center and network services, and cable landing stations as key differentiators.
Q: Is there an opportunity for edge capacity in smaller markets, and is it on your roadmap? A: Raju Vegesna confirmed that Sify is already pursuing opportunities in Tier 2 and Tier 3 cities, with plans to build 10 to 12 edge data centers over the next few years.
Q: Can you explain the change in equity figures reported in the press release? A: Raju Vegesna clarified that the change was due to a reclassification of compulsory convertible debentures as debt until the listing occurs.
Q: Are there any plans for raising capital if the IPO is delayed? A: Raju Vegesna stated that Kotak is committed to supporting Sify's growth, and they will consider strategic investors if necessary.
Q: What is the outlook for the digital services business and its path to profitability? A: Raju Vegesna mentioned that while revenue growth may be limited, efforts are underway to reduce EBITDA losses, with guidance from the Board to achieve profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
