Sify Technologies Limited

Sify reported revenue of INR 1,235.2 million for Q1 FY 2026-27, up 15% year over year, and adjusted EBITDA of INR 300.5 million, up 42% year over year. Profit for the quarter was INR 65 million, capital expenditure was INR 670.8 million, and cash balance at quarter-end was INR 4,597 million. Management also said the revenue mix was 39% network services, 42% data center colocation, and 19% IT digital services. For forward capacity, management said 100 MW will be delivered in this fiscal year, with another 150 MW under construction; live revenue-generating capacity is 134 MW, installed capacity is 154 MW, and designed capacity is 188 MW.

Raju Vegesna framed India’s digital transformation as moving from planning to execution at scale, with AI adoption increasing the need for secure, scalable infrastructure. He said Sify is aligning its investments with these long-term trends through an integrated portfolio of data centers, network, and digital services. In tone, he was upbeat and strategic, emphasizing Sify’s role in supporting India’s digital future and future-ready ecosystems.

M.P. Vijay Kumar said the quarter reflected disciplined execution, improved resource utilization, and targeted investment in capacity expansion, network modernization, and technology platforms. He cited revenue of INR 1,235.2 million, adjusted EBITDA of INR 300.5 million, profit of INR 65 million, capex of INR 670.8 million, and cash of INR 4,597 million, while stressing a strong balance sheet and financial flexibility. On the capital structure question, he said the change in the equity/debt figure was due to a consolidation-side reclassification of CCDs, treated as debt until the listing happens.

Analysts focused on IPO timing for Sify Infinit Spaces, with management saying bankers are actively evaluating the right time and the company is ready to list when advised. Questions also centered on data center capacity and capex; management said 100 MW will be delivered this fiscal year, 150 MW is under construction, and capex will likely be higher for the rest of the year. On margin pressure in data centers, management attributed the weakness to a one-off power tariff revision at one facility and said they are working with the customer to potentially pass it through later. For the digital services business, management said revenue growth may be limited because Sify is shifting toward services revenue, while EBITDA losses are being reduced quarter over quarter.