Sify Technologies (SIFY) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY25-26 reached INR 10,723 million, up 14% year-over-year, with EBITDA at INR 2,111 million, up 18% year-over-year.

• Loss before tax was INR 322 million; loss after tax was INR 389 million, reflecting investments in future capabilities and higher depreciation, interest, and manpower costs.

• CAPEX for the quarter was INR 2,874 million, and cash balance at quarter-end was INR 3,861 million.

• The company is focused on cost efficiency, disciplined investment, and building long-term stakeholder value.

• Business split: Network services 41%, Data Center services 37%, Digital services 22%.

Financial highlights

• Gross profit for Q1 FY25-26 was INR 4,149 million, up from INR 3,460 million year-over-year.

• Operating profit was INR 537 million, compared to INR 566 million in the same quarter last year.

• EBITDA margin improved, with EBITDA at INR 2,111 million versus INR 1,784 million year-over-year.

• Net debt increased to INR 30,321 million from INR 23,115 million year-over-year.

• 8.6 MW of new data center capacity was commissioned in the quarter; 10% increase in fibre nodes year-over-year.

Outlook and guidance

• Expectation of operating leverage and improved profitability in 12-18 months as investments in digital IT services mature.

• Two new data centers in Mumbai (52 MW each) are under construction and expected to go live later in the year.

• Focus on enabling AI workloads and attracting forward-thinking enterprises.

• India is positioned as a global growth engine for digital infrastructure, driven by government policy and private investment.

• Management emphasizes long-term value creation, cost efficiency, and disciplined investment amid rising depreciation, interest, and manpower costs.