Sify Technologies (SIFY) investor relations material

Executive summary

• Revenue for Q3 FY25-26 grew 11% year-over-year to INR 11,596 million, with EBITDA up 29% to INR 2,470 million.

• Loss before tax was INR 2,570 million and after tax was INR 3,290 million, though another report states a loss before tax of INR 257 million and after tax of INR 329 million.

• Management highlighted India's digital growth and strategic investments in data centers, networks, and AI-driven platforms.

• Data center colocation services led revenue at 40%, followed by network services at 37% and digital services at 23%.

• The company is investing in hyperscaler data centers, resilient networks, and AI-driven platforms to capitalize on India's digital transformation.

Financial highlights

• Revenue increased 11% year-over-year to INR 11,596 million for Q3 FY25-26.

• EBITDA rose 29% year-over-year to INR 2,470 million.

• Gross profit for the quarter was INR 4,644 million, with an operating profit of INR 677 million.

• Capital expenditure for the quarter was INR 3,452 million; cash balance at quarter-end was INR 3,627 million.

• EBITDA margin improved, with EBITDA at INR 2,470 million versus INR 1,914 million a year ago.

Outlook and guidance

• Digital services are expected to reach break-even in the latter part of FY26-27, with profitability depending on market scale-up.

• Substantial new data center capacity will be added in the coming year, with Rabale Tower 6 and 7 and Rabale 11 going live.

• The company expects continued growth in data center and network businesses, with network growth tracking but not matching the pace of data center expansion.

• Management reiterated a disciplined approach to capital allocation, focusing on long-term value creation and future readiness.

• Continued investments in hyperscale data centers and digital platforms to meet rising demand for AI and cloud infrastructure.