Sify Technologies (SIFY) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY 2024-25 reached INR 10,275 million, up 17% year-over-year, with EBITDA at INR 1,963 million, up 29% year-over-year; profit after tax was INR 49 million.

• Significant capital investments and expansion in Data Center capacity, with 6.5 MW commissioned in Mumbai during the quarter.

• The business is seeing balanced growth from both hyperscalers and enterprise customers, with AI-related demand beginning to emerge.

• Data center, digital, and network services each contributed roughly one-third to revenue.

• Adoption of IFRS 18 for financial reporting, with no impact on total income or net profit.

Financial highlights

• Gross profit for the quarter was INR 3,913 million, up from INR 3,282 million in the same quarter last year.

• Operating profit increased to INR 780 million from INR 480 million year-over-year.

• EBITDA margin improved to 19.1%, with EBITDA at INR 1,963 million compared to INR 1,519 million a year ago.

• Capital expenditure for the quarter was INR 2,594 million; cash balance at quarter-end was INR 7,574 million.

• Recent rights issue proceeds and improved operating efficiency contributed to a higher cash balance.

Outlook and guidance

• Ongoing investments in data center capacity and digital infrastructure are expected to drive future net profit, though they will also increase depreciation and interest costs.

• Free cash flow after new capital expenditure is expected to be several years away due to aggressive expansion plans.

• SG&A as a percentage of revenue is expected to remain stable.

• Continued focus on cost-effectiveness, fiscal prudence, and scaling sustainable practices, especially in Data Centers.