Sify Technologies (NASDAQ:SIFY) reported higher first-quarter revenue and adjusted EBITDA for fiscal 2026-27, as management pointed to continued demand for data centers, network modernization and digital infrastructure tied to cloud, artificial intelligence and data-intensive workloads.
Executive Director and Group CFO M.P. Vijay Kumar said revenue for the quarter was INR 1,235.2 million, up 15% from the same quarter last year. Adjusted EBITDA was INR 300.5 million, an increase of 42% year over year. Profit for the quarter was INR 65 million.
Chairman Raju Vegesna said India’s digital transformation has moved from planning to execution, with organizations investing in technology to improve productivity, resilience and customer experience. He said the adoption of AI will increase demand for “secure, scalable, and interconnected digital infrastructure.”
“India is no longer preparing for the digital future, it is actively shaping it,” Vegesna said. “Sify remains committed in building the infrastructure and capabilities that will help power this next chapter of growth.”
Data Centers Led Revenue Mix
Vijay Kumar said Sify’s quarterly revenue was split across three businesses: data center colocation services accounted for 42%, network services contributed 39% and IT digital services made up 19%.
The company’s data center subsidiary sold 5 megawatts of capacity during the quarter. Vijay Kumar said Sify’s “designed and ready” data center capacity stood at 188 MW, while operational live revenue-generating capacity was 134 MW. In response to an analyst question, he said installed capacity was 154 MW.
Management also outlined a sizable construction pipeline. Vijay Kumar said about 100 MW of capacity is expected to be delivered during the current fiscal year, with another 150 MW under construction. He added that the company expects capital spending to be higher for the rest of the year as it prepares to deliver capacity for customers.
Analyst Prateek Singh of IIFL Capital asked about an 81 MW capacity agreement signed in the prior quarter. Vijay Kumar said that capacity is expected to begin generating revenue from the end of the second quarter, with a more significant contribution in the third and fourth quarters.
Asked by Greg Burns of Sidoti & Company about Sify’s competitive differentiation, Vegesna cited the company’s long market presence, relationships with hyperscalers and enterprises, and its footprint in key Indian markets including Mumbai, Chennai, Noida, Hyderabad, Bangalore and Kolkata. He also highlighted Sify’s network connectivity around its data centers and its work on cable landing stations.
“As an integrated player, complete, having data centers, network and having a good power availability story, that will help to win such kind of data center deals,” Vegesna said.
Edge Data Center Expansion Planned
Sify is also pursuing smaller-market data center opportunities beyond India’s major metro areas. Vegesna said the company has completed two edge data centers in Lucknow and Chandigarh and is constructing two more.
He said Sify plans to build about 10 to 12 edge data centers across Tier 2 and Tier 3 cities over the next few years, adding that India’s secondary cities are strategically important. The company is targeting two to three edge data centers per year, he said.
IPO Timing Remains Dependent on Market Conditions
Burns also asked about the potential timing of an initial public offering for Sify Infinit Spaces, the company’s data center subsidiary. Vijay Kumar said bankers are evaluating the right timing, with attention to market appetite and investor appreciation for the asset.
“From the company’s side, we stay ready for listing once the bankers advise us on going ahead,” Vijay Kumar said.
In a follow-up question, Singh asked whether the company would consider a private capital raise if the IPO is delayed. Vijay Kumar said Sify is pursuing the IPO path and that Kotak is supporting the company’s equity needs for growth.
“Any capital requirement in the unlikely situation of IPO getting delayed, Kotak will step in,” Vijay Kumar said. He added that several other strategic investors have shown interest and that the company would evaluate options if necessary.
Margins, Digital Services and Network Outlook
Singh questioned the data center business’s quarter-over-quarter margin movement, noting that revenue rose while EBITDA was largely flat. Vijay Kumar said the impact was “essentially a one-off” tied to a power tariff revision at one facility.
Asked whether the increase could be passed on to customers, Vijay Kumar said the company is working with the customer and that any recovery would be reflected later. He said Sify had taken the item into cost from a conservative accounting perspective.
On IT digital services, Singh noted that the business had negative EBITDA and lower revenue year over year and sequentially. Vijay Kumar said the company may not see significant revenue growth in the segment because it is focusing more on services revenue rather than project-based revenue.
He said Sify is working to reduce losses quarter over quarter and that the board is actively guiding efforts to put the business on a path to profitability. He did not provide specific steps but said the company’s efforts are visible in reduced EBITDA losses compared with the prior-year first quarter and the sequential prior quarter.
For network services, Vijay Kumar said revenue should continue to grow organically, describing the market as reasonably mature and saying growth should be “reasonably good.” Sify provides network services through 1,238 fiber nodes across India as of June 30, 2026, a 7% increase from the same quarter last year.
Management Emphasizes Long-Term Infrastructure Investment
Vijay Kumar said Sify continued to invest in capacity expansion, network modernization and technology platforms to address demand from AI, cloud and data-intensive workloads. At the same time, he said the company remains focused on cost management, cash flow optimization and operating efficiency.
He acknowledged that investments in infrastructure and talent continue to affect depreciation, interest and people costs, but said they are aligned with long-term growth objectives and supported by prudent risk management and financial planning.
“Our priority remains unchanged, maintaining a strong balance sheet, preserving financial flexibility, and creating enduring value for shareholders through disciplined growth and responsible stewardship of capital,” Vijay Kumar said.
About Sify Technologies (NASDAQ:SIFY)
Sify Technologies Limited is an India‐based provider of integrated information and communications technology solutions, catering primarily to enterprise and government clients. The company’s core offerings include network services, data center hosting, cloud computing, managed security, unified communications, and digital transformation solutions. Sify’s end-to-end portfolio is designed to support critical IT infrastructure, enabling clients to scale operations, improve reliability, and accelerate technology adoption.
In the networking domain, Sify operates a nationwide IP‐MPLS backbone with extensive fiber infrastructure and a global internet peering footprint.
