Sify reports Consolidated Financial Results for Q3 FY 2025-26
MWN-AI** Summary
Sify Technologies has reported its consolidated financial results for the third quarter of the fiscal year 2025-26, revealing a revenue of INR 11,596 million, an 11% increase year-over-year. The company's EBITDA for the quarter stood at INR 2,470 million, marking a significant increase of 29% compared to the same quarter last year. Despite this growth in revenue and EBITDA, Sify recorded a loss of INR 329 million after taxation, which reflects a decline from a loss of INR 258 million in the previous year.
The company reported that its capital expenditure (CAPEX) for the quarter was INR 3,452 million, which aligns with their strategy to invest in hyperscale data centers, advanced network capabilities, and AI-driven platforms. Raju Vegesna, Chairman, emphasized India's transition to a leader in digital infrastructure and mentioned the growing demand for secure, high-performance digital solutions. He noted that the Indian IT landscape is evolving, with increased focus on AI, cloud services, and data-driven strategies.
The revenue distribution among Sify's business segments showed that Data Center services contributed the most at 40%, followed closely by Network Services at 37%, and Digital Services at 23%. Key customer engagements included contracts with large enterprise clients and government entities seeking cloud and network solutions. Despite the current financial loss, Sify maintains a strong cash position of INR 3,627 million and is focused on long-term value creation through disciplined investment strategies.
Sify's commitment to its expansion and service enhancement in the digital economy positions the company as a resilient player in the ICT sector, reflecting long-term growth potential even amidst short-term challenges.
MWN-AI** Analysis
Sify Technologies' recent Q3 FY 2025-26 financial results indicate a mixed performance, marked by a revenue increase of 11% year-over-year to INR 11,596 million and a significant 29% rise in EBITDA to INR 2,470 million. However, the company reported a loss of INR 329 million, up from a loss of INR 258 million in the same quarter last year, highlighting challenges in managing its operational costs and debt burdens.
The management has recognized India's burgeoning digital economy, indicating growth opportunities as enterprises shift toward cloud, AI, and data services. Their continued investment in hyperscale data centers and resilient networks aligns well with this trend. However, the growing losses amid rising revenues suggest that Sify must rigorously evaluate its cost structures and strategies for operational efficiency while pursuing aggressive expansion.
Crucially, Sify's capital expenditures for the quarter were substantial at INR 3,452 million, indicating a strategic commitment to enhancing its infrastructure. However, with a rising net debt of INR 35,966 million, stakeholders should remain cautious regarding the company's ability to sustain such investments without crippling its financial health.
Customers are expanding operations with Sify, including major contracts in network management and data center services; this bodes well for long-term revenue streams. Still, the persistent losses raise questions about the sustainability of such growth. Investors should carefully monitor the forthcoming management commentary on potential initiatives to improve profitability.
Overall, Sify presents a compelling growth narrative tempered by significant financial risks. Investors should adopt a cautious stance, balancing their optimism about Sify's growth potential with the inherent risks of operating losses and high leverage. A watchful eye on future earnings calls and strategic initiatives will be vital in evaluating the company's financial trajectory and investment viability.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Revenues of INR 11596 Million. EBITDA of INR 2470 Million.
Loss for the period INR 329 Million.
CHENNAI, India, Jan. 12, 2026 (GLOBE NEWSWIRE) --
DETAILS OF EARNING CALL January 13, 2026 | 8:30 AM ET | 07:00 PM IST
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On the call: Mr. Raju Vegesna, Chairman of the Board and Mr. M P Vijay Kumar, Executive Director & Group CFO
Live webcast: https://www.webcaster4.com/Webcast/Page/2184/53449.
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Replay is available until January 20, 2026.
HIGHLIGHTS
- Revenue was INR 11596 Million, an increase of 11% over the same quarter last year.
- EBITDA was INR 2470 Million, an increase of 29% over the same quarter last year.
- Loss before tax was INR 257 Million. Loss after tax was INR 329 Million.
- CAPEX during the quarter was INR 3452 Million.
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman, said, “India’s growth story has moved decisively from promise to performance. Strong economic fundamentals, policy continuity and accelerating digital adoption are positioning India as a central pillar in the global technology ecosystem. Indian IT is entering a new phase—one defined not only by scale, but by leadership in digital infrastructure, cloud, and AI-led innovation.
“As enterprises and governments intensify their focus on AI, cloud, and data-driven platforms, demand for secure, high-performance, and sovereign digital infrastructure is rising rapidly. At Sify, our strategy is aligned with this inflection point through sustained investments in hyperscale data centers, resilient networks, and AI-ready platforms, positioning us to enable the next decade of enterprise transformation in India.”
Mr. M P Vijay Kumar, ED & Group CFO, said, “We continue to exercise fiscal discipline while making measured investments to strengthen our long-term capabilities. Our capital allocation across data centers, networks and digital platforms remains guided by a disciplined approach to risk and future readiness, with a focus on long-term value creation.
“The cash balance at the end of the quarter was INR 3627 Million.”
BUSINESS HIGHLIGHTS
- The Revenue split between the businesses for the quarter was Network services 37%, Data Center services 40% and Digital services 23%.
- Since June 30, 2025, Sify sold 12.16MW of additional Data Center capacity.
- As of December 31, 2025 Sify provides services via 1214 fibre nodes, a 9% increase over same quarter last year.
- As on December 31, 2025, Sify has deployed 9695 SDWAN service points across the country.
CUSTOMER ENGAGEMENTS
Among the most prominent new contracts during the quarter were the following:
Network Services
- India’s largest stock exchange contracted for interconnection to the cloud to provide last mile services to Capital Market members.
- A private insurance MNC signed up for a Network management and SDWAN deployment.
- Sify contracted an international bank for international and domestic connectivity services.
- The largest private domestic airport manager signed up for WAN services for their new international airport in India.
Data Center Services
- One of the India’s largest shares brokering firms contracted to move their capacity from a competitor DC.
- One of India's leading diversified financial services major and a subsidiary of the largest bank in India contracted to move their on-premise DC.
- The umbrella corporation that facilitates digital payments in India signed up to modernize and expand their capacity with liquid-cooling solutions for their GPUs.
- A subsidiary of the Central bank and an Indian multinational technology company signed up to expand capacity.
Digital Services
- Sify contracted an Indian multinational, a private insurance MNC, a private commodities major, a digital payments enabler, a welfare arm of a state government and a private health major for greenfield Cloud implementation; these clients also contracted for services like DRaaS, PaaS and IaaS.
- The central government’s digital payments enabler, a state government’s technology arm, a private insurance major, another state government’s electronics subsidiary and a private financial major contracted for managed services.
- A private IT player contracted for a Security Operations Center (SOC).
- The country’s largest private health major contracted to enable a hyperscaler’s cloud platform.
| FINANCIAL HIGHLIGHTS | |||||||
| Unaudited Consolidated Income Statement as per IFRS | |||||||
| (In INR millions) | |||||||
| Description | Quarter ended | Quarter ended | Quarter ended | ||||
| Dec 2025 | Dec 2024 | Sep 2025 | |||||
| Revenue | 11,596 | 10,491 | 10,533 | ||||
| Cost of Sales | (6,952 | ) | (6,725 | ) | (6,294 | ) | |
| Gross Profit | 4,644 | 3,766 | 4,239 | ||||
| Other Operating Income | 93 | 64 | 81 | ||||
| Selling, General and Administrative Expenses | (2,172 | ) | (1,845 | ) | (1,871 | ) | |
| Depreciation and Amortisation expense | (1,888 | ) | (1,446 | ) | (1,740 | ) | |
| Operating Profit | 677 | 539 | 709 | ||||
| Investment Income | 7 | 52 | 16 | ||||
| Impairment loss on Investment | - | - | (4 | ) | |||
| Profit before financing and income taxes | 684 | 591 | 721 | ||||
| Finance income | - | 19 | - | ||||
| Interest expenses on borrowings and lease liabilities | (940 | ) | (729 | ) | (914 | ) | |
| Interest expenses on pension liabilities | (1 | ) | - | (1 | ) | ||
| Profit/(Loss) before income taxes | (257 | ) | (119 | ) | (194 | ) | |
| Income Tax Expense | (72 | ) | (139 | ) | (81 | ) | |
| Profit/(Loss) for the period | (329 | ) | (258 | ) | (275 | ) | |
| Profit attributable to: | |||||||
| Reconciliation with Non-GAAP measure | |||||||
| Profit/(Loss) for the period | (329 | ) | (258 | ) | (275 | ) | |
| Add: | |||||||
| Depreciation and Amortisation expense | 1,888 | 1,446 | 1,740 | ||||
| Net Finance Expenses | 855 | 636 | 841 | ||||
| Income Tax Expense | 72 | 139 | 81 | ||||
| Less: | |||||||
| Other Income (including exchange gain/loss) | 16 | 49 | 26 | ||||
| EBITDA | 2,470 | 1,914 | 2,361 | ||||
| Segment Reporting: | |||||||||||||||||
| (In INR millions) | |||||||||||||||||
| Quarter ended December 2025 | Quarter ended December 2024 | ||||||||||||||||
| Particulars | Network Services | Data Center Services | Digital Services | Total | Network Services | Data Center Services | Digital Services | Total | |||||||||
| (A) | (B) | ( C) | (D)= (A)+(B)+(C) | (A) | (B) | ( C) | (D)= (A)+(B)+(C) | ||||||||||
| External customers Revenue | 4,227 | 4,649 | 2,720 | 11,596 | 4,274 | 3,837 | 2,380 | 10,491 | |||||||||
| Intersegment Revenue | 22 | 55 | 77 | 22 | 55 | 77 | |||||||||||
| Operating Expense | (3,432 | ) | (2,615 | ) | (2,984 | ) | (9,031 | ) | (3,823 | ) | (2,119 | ) | (2,655 | ) | (8,597 | ) | |
| Intersegment Expense | (63 | ) | (14 | ) | (77 | ) | (63 | ) | (14 | ) | (77 | ) | |||||
| Segment Result | 732 | 2,056 | (223 | ) | 2,565 | 388 | 1,740 | (234 | ) | 1,894 | |||||||
| Unallocated Expense: | |||||||||||||||||
| Support Service Unit Costs | (93 | ) | 27 | ||||||||||||||
| Depreciation and Amortisation | (1,888 | ) | (1,446 | ) | |||||||||||||
| Other income / (expense), net | 100 | 116 | |||||||||||||||
| Finance Income | 19 | ||||||||||||||||
| Finance Expense | (941 | ) | (729 | ) | |||||||||||||
| Profit / (loss) before tax | (257 | ) | (119 | ) | |||||||||||||
| Income taxes (expense) / benefit | (72 | ) | (139 | ) | |||||||||||||
| Profit / (loss) for the period | (329 | ) | (258 | ) |
| Equity and Debt: | ||||
| (In INR millions) | ||||
| Particulars | Quarter ended Dec 2025 | Quarter ended Dec 2024 | Quarter ended Sep 2025 | |
| EQUITY | 15,792 | 17,391 | 16,116 | |
| BORROWINGS | ||||
| Long term | 27,891 | 26,306 | 26,729 | |
| Short term | 11,702 | 11,136 | 11,996 | |
| Less: Cash Balance | 3,627 | 5,327 | 4,149 | |
| Net debt | 35,966 | 32,115 | 34,576 | |
About Sify Technologies
A multiple times award winner of the Golden Peacock from Institute of Directors for Corporate Governance, Sify Technologies is India’s most comprehensive ICT service & solution provider. With Cloud at the core of our solutions portfolio, Sify is focussed on the changing ICT requirements of the emerging Digital economy and the resultant demands from large, mid and small-sized businesses.
Sify’s infrastructure comprising state-of-the-art Data Centers, the largest MPLS network, partnership with global technology majors and deep expertise in business transformation solutions modelled on the cloud, make it the first choice of start-ups, SMEs and even large Enterprises on the verge of a revamp.
More than 10000 businesses across multiple verticals have taken advantage of our unassailable trinity of Data Centers, Networks and Digital services and conduct their business seamlessly from more than 1700 cities in India. Internationally, Sify has presence across North America, the United Kingdom and Singapore. Sify, www.sify.com, Sify Technologies and www.sifytechnologies.com are registered trademarks of Sify Technologies Limited.
Non-IFRS Measures
This press release contains a financial measure not prepared in accordance with IFRS. In particular, EBITDA is referred to as “non-IFRS” measure. The non-IFRS financial measure we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies - refer to the reconciliation provided in the table labelled Financial Highlights for more information. In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures calculated in accordance with IFRS, and our financial results calculated in accordance with IFRS and reconciliation to those financial statements should be carefully evaluated.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with Sify’s business, please see the discussion under the caption “Risk Factors” in the company’s Annual Report on Form 20-F for the year ended March 31, 2025, which has been filed with the United States Securities and Exchange Commission and is available by accessing the database maintained by the SEC at www.sec.gov, and Sify’s other reports filed with the SEC.
For further information, please contact:
| Sify Technologies Limited Praveen Krishna Investor Relations & Public Relations +91 9840926523 praveen.krishna@sifycorp.com | 20:20 Media Nikhila Kesavan +91 9840124036 nikhila.kesavan@2020msl.com | Luri Group Lucia Domville 646.824.2856 lucia.domville@lurigroup.com |
FAQ**
How does the revenue increase of 1to INR 11,596 Million for Sify Technologies Limited SIFY compare to industry benchmarks, and what specific factors drove this growth in the current quarter?
With an EBITDA of INR 2,470 Million representing a 29% increase, what strategic initiatives has Sify Technologies Limited SIFY implemented to enhance operational efficiency during this period?
Given Sify Technologies Limited SIFY's reported loss of INR 329 Million, what measures are being taken to address the underlying financial challenges and return to profitability in future quarters?
How will the significant CAPEX of INR 3,452 Million impact Sify Technologies Limited SIFY's long-term growth strategy, particularly in expanding data center services and digital infrastructure capabilities?
**MWN-AI FAQ is based on asking OpenAI questions about Sify Technologies Limited (NASDAQ: SIFY).
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