Sify Technologies (SIFY) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 FY25-26 grew 11% year-over-year to INR 11,596 million, with EBITDA up 29% to INR 2,470 million, reflecting strong operational execution and continued investment in digital infrastructure.

• Data center colocation services led revenue mix at 40%, followed by network services at 37% and digital services at 23%.

• Management emphasized India's digital growth and the company's strategic investments in data centers, networks, and AI-ready platforms.

Financial highlights

• Revenue: INR 11,596 million, up 11% year-over-year; EBITDA: INR 2,470 million, up 29% year-over-year.

• Gross profit for the quarter was INR 4,644 million, compared to INR 4,239 million in the same quarter last year.

• Operating profit was INR 677 million, up from INR 539 million year-over-year.

• Loss before tax: INR 2,570 million; loss after tax: INR 3,290 million.

• Capital expenditure: INR 3,452 million; cash balance: INR 3,627 million as of December 31, 2025.

Outlook and guidance

• Digital services expected to reach break-even in the latter part of FY26-27, with profitability dependent on scaling new offerings.

• Substantial new data center capacity to be added in 2025-26, with Rabale campus expansions and greenfield projects underway.

• IPO proceeds from Infinit Spaces to fund data center expansion and partially retire existing loans.

• Management reiterated a disciplined approach to capital allocation, focusing on long-term value creation and future readiness.

• Continued investments in hyperscale data centers and digital platforms to meet rising demand for AI and cloud infrastructure.