Sify reports strong EBITDA growth but net loss in Q2 FY26

Sify Technologies Limited today announced its consolidated financial results for the second quarter ended 30 September 2025. The company reported revenue of INR 10,533 million, representing a 3% increase compared with the same quarter last year. EBITDA stood at INR 2,361 million, a rise of 20% year-on-year, while the loss before tax was INR 194 million and the loss after tax amounted to INR 275 million. Capital expenditure during the quarter was INR 3,064 million.

Business highlights 

During the quarter, the revenue mix comprised 41% from Network Services, 39% from Data Centre Services, and 20% from Digital Services. Sify sold an additional three megawatts of data centre capacity and, as of 30 September 2025, operated 1,196 fibre nodes across India, representing a 12% increase year-on-year, and deployed 9,992 contracted SD-WAN service points nationwide.

Customer engagements

In terms of customer engagements, several major organisations signed contracts across Sify’s service divisions. In Network Services, a global software major, the global capability centre of an international bank, a non-banking financial services company, a microfinance provider, and a private health insurer signed up for interconnections to Sify’s cloud platform. Additional clients, including an international bank, a real estate company, an industrial component manufacturer, an Indian bank, and a private broking firm, contracted for data centre interconnection services.

The national flag carrier, the clearing arm of the Central Bank, a small finance bank, and a leading IT-enabled services company contracted for SD-WAN services, while an insurance major opted for international and terrestrial MPLS connectivity. An international investment banking firm, several public and private banks, the clearing arm of the Central Bank, a stock exchange, and a new-age investment platform signed up for WAN services.

In the Data Centre Services segment, a prominent online share trading firm migrated its disaster recovery operations to Sify’s facilities. An ICT start-up, an FMCG company, and a retail enterprise also transitioned from on-premise data centres to Sify’s infrastructure. A major national bank expanded its engagement by deploying NVIDIA GPU H200 technology, while a domestic applications provider and a state government-run rural banking platform also broadened their collaborations. Another leading national bank contracted for disaster recovery services.

Commenting on the results, Raju Vegesna, Chairman of Sify Technologies, said that India’s digital transformation is entering a decisive phase, redefining the country’s position within the global technology ecosystem. He noted that the acceleration in cloud adoption, AI integration, and data centre expansion underscores India’s growing role as a digital infrastructure hub.

Vegesna added that Sify remains focused on aligning with this momentum through sustained investment in hyperscale data centres, network expansion, and AI-ready digital platforms, which together strengthen the company’s position as a trusted enabler of enterprise transformation across both public and private sectors. He further stated that the next decade would see India setting global benchmarks in digital innovation and that Sify aims to play a pivotal role in building the infrastructure and platforms driving growth in the AI-led economy. 

Under Digital Services, a global logistics company signed up to migrate its SAP workloads to Sify’s cloud platform. An AI/ML start-up focused on financial inclusion, an IoT company, non-banking financial firms, and several players in the health, smart metering, and medical applications sectors contracted for new cloud implementations. Two healthcare providers and a domestic supplier serving the global agrochemical and pharmaceutical industries signed up for DRaaS, PaaS, and IaaS services.

In addition, a global insurance firm, a business intelligence provider, and a data security company commissioned private cloud deployments. The national digital payments authority and a private financial services provider signed managed services agreements, while multiple private banks engaged Sify to establish Security Operations Centres at their premises. A private IoT company leading the digital transformation of the power sector contracted its IoT commissioning under the Smart City programme to Sify.

Financially, for the quarter ended September 2025, Sify reported total revenue of INR 10,533 million compared with INR 10,275 million in the same quarter last year and INR 10,723 million in the previous quarter. The cost of sales was INR 6,294 million, resulting in a gross profit of INR 4,239 million. Other operating income stood at INR 81 million, while selling, general, and administrative expenses were INR 1,871 million.

Depreciation and amortisation costs were INR 1,740 million, leading to an operating profit of INR 709 million. Profit before tax stood at a loss of INR 194 million, compared to a profit of INR 140 million in the corresponding period last year. After accounting for an income tax expense of INR 81 million, the company reported a loss for the period of INR 275 million. EBITDA for the quarter was INR 2,361 million, compared with INR 1,963 million in the same quarter last year.

As of September 2025, the company’s equity was INR 16,116 million, compared with INR 17,627 million a year earlier. Long-term borrowings stood at INR 26,729 million and short-term borrowings at INR 7,823 million. After accounting for a cash balance of INR 4,149 million, the company’s net debt was INR 30,403 million.

M P Vijay Kumar, Executive Director and Group Chief Financial Officer, emphasised that the company remains committed to fiscal discipline while investing strategically for long-term growth. He explained that the current phase of expansion across Sify’s data centre, network, and digital platforms reflects deliberate decisions to build future-ready capabilities. He noted that while the Network and Data Centre businesses are scaling according to plan, the losses recorded in the IT Services segment reflect continued investment to prepare for emerging opportunities.

He also confirmed that Sify’s liquidity position remains robust, supported by prudent cash flow management and operational efficiency. As of the end of the quarter, the company’s cash balance stood at INR 4,149 million. Looking ahead, the focus will remain on maintaining financial agility, embedding accountability and sustainability into decision-making, and creating long-term value for all stakeholders.