Press Release: Sify Reports Consolidated Financial Results for Q1 FY 2026-27

Dow Jones07-15

Revenues of INR 12,352 Million. Adjusted EBITDA of INR 3,005 Million.

Profit for the period INR 65 Million.

CHENNAI, India, July 15, 2026 (GLOBE NEWSWIRE) --

DETAILS OF EARNING CALL July 15, 2026 | 8:30 AM ET | 06:00 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.webcaster5.com/Webcast/Page/2184/54259

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Replay is available until July 29, 2026

 
 
 

HIGHLIGHTS

   -- Revenue was INR 12,352 Million, an increase of 15% over the same quarter 
      last year. 
 
   -- Adjusted EBITDA was INR 3,005 Million, an increase of 42% over the same 
      quarter last year. 
 
   -- Profit for the quarter was INR 65 Million. 
 
   -- CAPEX during the quarter was INR 6,708 Million. 

MANAGEMENT COMMENTARY

Mr. Raju Vegesna, Chairman, said, "India's digital transformation is entering a phase of execution at scale. What was once a digital transformation agenda has now become a business imperative, with organizations investing in technology to improve productivity, resilience, and customer experience.

The country continues to benefit from a unique combination of progressive policy initiatives, expanding digital infrastructure, and a deep pool of technology talent. As AI adoption gathers pace, the need for secure, scalable, and interconnected digital infrastructure will become even more critical. This presents a significant opportunity for India to strengthen its position as a global technology and innovation hub.

At Sify, we continue to align our investments with these long-term trends. Our integrated portfolio of Data Centers, Networks, and Digital Services enables us to support customers as they modernize their technology environments and prepare for an AI-enabled future.

India is no longer preparing for the digital future--it is actively shaping it. Sify remains committed to building the infrastructure and capabilities that will help power this next chapter of growth."

Mr. M P Vijay Kumar, ED & Group CFO, said, "During the quarter, we continued to strengthen the operational foundations of our businesses through disciplined execution, improved resource utilization, and targeted investments across each of our portfolios.

We continue to invest in capacity expansion, network modernization, and technology platforms that position us to address emerging demand from AI, cloud, and data-intensive workloads. At the same time, we remain vigilant in managing costs, optimizing cash flows, and enhancing operational efficiencies across the organization.

While investments in infrastructure and talent continue to influence depreciation, interest, and manpower costs, these are aligned with our long-term growth objectives and are supported by a prudent approach to 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.

The cash balance at the end of the quarter was INR 4,597 Million."

BUSINESS HIGHLIGHTS

   -- The Revenue split between the businesses for the quarter was Network 
      services 39%, Data Center services 42% and Digital services 19%. 
 
   -- The Data Center subsidiary sold 5 MW of capacity in the quarter. 
 
   -- As on June 30,2026, Sify provides services via 1238 fiber nodes across 
      the country, a 7% increase over same quarter last year. 

CUSTOMER ENGAGEMENTS

Among the most prominent new contracts were the following:

Network Services

   -- One of the largest international banks contracted for large capacity 
      Cloud inter-connect in major data centers and branch network integration 
      with hyper scale cloud providers. 
 
   -- Another international bank contracted for managed services and network 
      integration across their branches and SDWAN. 
 
   -- One of the largest capital market service providers contracted to 
      implement a high uptime, large capacity network connecting data centers 
      in different cities to facilitate training and inferencing for their AI 
      workloads. 
 
   -- One of India's largest e-commerce service providers contracted Sify for a 
      Wide Area Network to connect their dark stores across more than 800+ 
      locations in 100+ Cities. 
 
   -- Sify launched its Onnet Platform enabling real-time, on-demand 
      provisioning of network services. 

Data Center Services

   -- A pan-India health services provider contracted to transition from a 
      competitor's data center to Sify's data center. 
 
   -- A domestic banking player contracted to move from their on-prem location 
      to Sify data center. 
 
   -- A new-age wallet services provider contracted to repatriate their cloud 
      services to Sify's multiple data center locations. 
 
   -- One of India's oldest banks contracted Sify to set up their 
      near-disaster-recovery location in Sify's data center. 
 
   -- Sify delivered data center capacity in one of the newest facilities to a 
      global major in mobility instruments. 

Digital services

   -- An insurance major contracted to migrate from their on-premise data 
      center to one of our cloud platforms. 
 
   -- The government's data repository division and a regional bank contracted 
      for managed services. 
 
   -- A private cyber-security player contracted Sify to build a green-field 
      cloud service. 
 
   -- One of India's oldest industrial houses contracted Sify for 
      disaster-recovery-as-a-service. 
 
   -- Multiple players including a regional bank, an insurance major and a 
      division of the aviation ministry contracted for on-prem private cloud 
      commissioning. 
 
   -- Contracts for managed services came from one of India's largest steel 
      majors, an agro-tech major, a microfinance startup and a speciality 
      chemicals player. 
 
   -- Contracts for security operations center and security services came from 
      a regional bank and an insurance major. 

FINANCIAL HIGHLIGHTS

 
  Unaudited Consolidated Income Statement as per IFRS 
  (In INR millions) 
------------------------------------------------------------------------ 
                         Quarter     Quarter     Quarter      Year 
     Description          ended       ended       ended       ended 
---------------------- 
                                                  March       March 
                        June 2026   June 2025     2026        2026 
---------------------- 
                                                            (Audited) 
----------------------  ---------   ---------   ---------   --------- 
 
  Revenue                  12,352      10,723      12,025      44,877 
  Cost of Sales            (7,462)     (6,574)     (7,023)    (26,843) 
  Gross Profit              4,890       4,149       5,002      18,034 
  Other Operating 
   Income                      45          85         118         376 
  Selling, General and 
   Administrative 
   Expenses                (1,899)     (2,018)     (2,062)     (8,123) 
  Depreciation and 
   Amortisation 
   expense                 (1,920)     (1,679)     (1,968)     (7,274) 
  Operating Profit          1,116         537       1,090       3,013 
  Investment Income            70           -          11          34 
  Impairment loss on 
   Investment                   -         (22)          -         (26) 
  Profit before 
   financing and 
   income taxes             1,186         515       1,101       3,021 
  Finance income                -           1           -           1 
  Interest expenses on 
   borrowings and 
   lease liabilities       (1,022)       (837)     (1,259)     (3,950) 
  Interest expenses on 
   pension 
   liabilities                  -          (1)        (10)        (13) 
  Profit/(Loss) before 
   income taxes               164        (322)       (168)       (941) 
                        ---------   ---------   ---------   --------- 
 
  Income Tax Expense          (99)        (67)       (204)       (425) 
 
  Profit/(Loss) for 
   the period                  65        (389)       (372)     (1,366) 
----------------------  ---------   ---------   ---------   --------- 
 
Profit attributable 
to: 
---------------------- 
Reconciliation with 
Non-GAAP measure 
---------------------- 
 
  Profit/(Loss) for 
   the period                  65        (389)       (372)     (1,366) 
  Add: 
  Depreciation and 
   Amortisation 
   expense                  1,920       1,679       1,968       7,274 
  Net Finance Expenses      1,022         765       1,259       3,949 
  Current Tax                 122         122         141         487 
  Deferred Tax                  -           -          63           - 
  Less: 
  Deferred Tax                (23)        (55)          -         (62) 
  Other Income 
   (including exchange 
   gain/loss)                (101)        (11)       (129)       (411) 
 
  Adjusted EBITDA           3,005       2,111       2,930       9,871 
----------------------  ---------   ---------   ---------   --------- 
 
 
 
 
Segment Reporting: 
(In INR millions) 
                            Quarter ended June 2026                            Quarter ended June 2025 
               -------------------------------------------------  ------------------------------------------------- 
                              Data                                               Data 
                Network      Center     Digital                    Network      Center     Digital 
 Particulars    Services    Services    Services       Total       Services    Services    Services       Total 

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