Sify(SIFY) - 2026 Q1 - Quarterly Report

Earnings Call Information This section provides essential details for Sify's Q1 FY2025-26 earnings call, including date, time, and access information Call Details This section provides the essential details for Sify's Q1 FY2025-26 earnings call, including the date, time, participant dial-in numbers, access code, live webcast link, and replay information | Detail | Information | | :--- | :--- | | Date | July 18, 2025 | | Time (ET) | 8:30 AM | | Time (IST) | 06:00 PM | | U.S./Canada Toll-Free Dial-in | +1-888-506-0062 | | International Dial-in | +1-973-528-0011 | | Access Code | 205616 | | Live Webcast | https://www.webcaster4.com/Webcast/Page/2184/52733 | | Replay Availability | Until July 25, 2025 | | On the Call | Mr. Raju Vegesna (Chairman), Mr. M P Vijay Kumar (ED & Group CFO) | Q1 FY2025-26 Consolidated Financial Performance Sify reported Q1 FY2025-26 consolidated financial results, showing revenue and EBITDA growth despite a net loss for the period Overview of Key Financials Sify reported consolidated financial results for Q1 FY2025-26, with revenues increasing by 14% and EBITDA by 18% year-over-year, despite recording a net loss for the period | Metric | Q1 FY2025-26 (INR Million) | YoY Change | | :--- | :--- | :--- | | Revenues | 10,723 | +14% | | EBITDA | 2,111 | +18% | | Loss for the period | 389 | - | | Loss before tax | 322 | - | Detailed Financial Highlights This section provides a more detailed breakdown of key financial figures for the quarter, including revenue, EBITDA, profit/loss before tax, profit/loss after tax, and CAPEX, with comparative growth rates | Metric | Q1 FY2025-26 (INR Million) | Q1 FY2024-25 (INR Million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 10,723 | 9,421 | +14% | | EBITDA | 2,111 | 1,784 | +18% | | Loss before tax | (322) | 7 | - | | Loss after tax | (389) | (52) | - | | CAPEX | 2,874 | - | - | Management Insights Management commentary highlights India's IT transformation, Sify's strategic investments, and commitment to long-term value Chairman's Commentary Mr. Raju Vegesna, Chairman, highlighted India's significant IT transformation, driven by investments in technology, cloud adoption, and automation. He emphasized India's emergence as a creator of AI tools and a growth engine for integrated infrastructure - India is undergoing a new generation of IT transformation, with significant investments in technology, cloud adoption, and automation by public and private enterprises[4] - Government policies (Digital India, India AI Mission) and regulatory clarity are attracting investments in compute infrastructure, digital access, hyperscale data centers, and 5G[5] - India is rapidly evolving from an AI consumer to a creator of AI tools, frameworks, and domain-specific solutions, driving robust demand for integrated infrastructure supporting high-performance workloads and edge computing[7][8] CFO's Commentary Mr. M P Vijay Kumar, ED & Group CFO, reiterated the company's commitment to cost efficiency, fiscal discipline, and long-term value creation through rigorous risk management. He noted that current results reflect conscious trade-offs for future-ready capabilities, including depreciation, interest costs, and rising manpower expenses, while maintaining a strong cash balance - The company remains committed to cost efficiency and fiscal discipline, with investment decisions focused on long-term value creation and rigorous risk management[8] - Current financial results are impacted by depreciation, interest costs, and rising manpower expenses, which are considered conscious trade-offs for building future-ready capabilities[8] - Financial strategies are designed for resilience and agility, with a foundational commitment to sustainability beyond regulatory compliance, aiming for predictable, long-term stakeholder value[9] | Metric | Q1 FY2025-26 (INR Million) | | :--- | :--- | | Cash balance at quarter end | 3,861 | Business Operations and Engagements Sify's operational highlights cover segment revenue, data center expansion, and new customer contracts Operational Highlights Sify's revenue split for the quarter was dominated by Network Services (41%) and Data Center Services (37%), with Digital Services contributing 22%. The company expanded its Data Center capacity by 8.6 MW and increased its fibre nodes by 10% year-over-year | Business Segment | Revenue Split (%) | | :--- | :--- | | Network Services | 41% | | Data Center Services | 37% | | Digital Services | 22% | - Sify commissioned 8.6 MW of additional Data Center capacity during the quarter[11] - The company's fibre nodes increased by 10% over the same quarter last year, reaching 1159 nodes across India as of June 30, 2025[11] - Sify has deployed 9661 contracted SDWAN service points across the country as of June 30, 2025[11] Customer Engagements and New Contracts Sify secured prominent new contracts across its Network, Data Center, and Digital services segments, demonstrating continued market penetration and expansion of its service offerings to diverse clients, including global IT leaders, banks, and manufacturers Network Services Contracts New contracts in Network Services include dedicated capacity for a global IT leader, high-redundancy infrastructure for a spirit manufacturer, NAT Gateway setup for a private bank, MPLS builds for multiple foreign banks and tech companies, and managed SD WAN services for various banks - Contracted a global IT leader for dedicated capacity on Sify's National Long-Distance network[14] - Secured a contract with one of the world's largest spirit manufacturers for high-redundancy network infrastructure[14] - Signed multiple banks for MPLS builds and managed SD WAN services, including a private bank for NAT Gateway setup[14] - Signed an MSA with a global telecommunication leader[14] Data Center Services Contracts Data Center Services saw new engagements including migration from competitors' data centers, movement from on-premise storage to Sify DC, Disaster Recovery services for a joint venture, and migrations to Sify's Cloud platform for logistics, portfolio management, and banking clients - An upcoming IT player migrated from a competitor's data center to Sify Data Center[14] - A foreign multinational in IT applications moved from on-premise storage to Sify DC[14] - A joint venture between a foreign insurance player and an Indian partner signed up for Disaster Recovery services[14] - Multiple clients, including a logistics major and a scheduled bank, contracted Sify to migrate from on-premise DC to its Cloud platform[14] Digital Services Contracts Digital Services secured contracts for greenfield cloud platform implementations for diverse groups, DRaaS, PaaS, and IaaS for manufacturers and banks, private cloud commissioning on-premise for a housing finance major, and on-premise security services for an FMCG and a private bank - A diversified financial services group, a healthcare consultancy, an infotech major, and an industrial machinery manufacturer signed up for greenfield cloud platform implementation[14] - A steel manufacturer, healthcare services provider, clean energy provider, private banks, and India's first private rail wheel and axle manufacturer signed up for services like DRaaS, PaaS, and IaaS[14] - A housing finance major contracted Sify for private cloud commissioning on-premise[14] - One of India's oldest FMCGs and a private bank signed up for on-premise security services[14] Financial Statements and Performance Measures This section details Sify's consolidated P&L, EBITDA, segment performance, and equity and debt positions Consolidated Statement of Profit and Loss This section presents a comprehensive breakdown of Sify's consolidated revenues, costs, and profit/loss for the quarter ended June 2025, alongside comparative data for the previous year's quarter and the preceding quarter, highlighting key financial movements | Description | Quarter ended June 2025 (INR Million) | Quarter ended June 2024 (INR Million) | Quarter ended March 2025 (INR Million) | | :--- | :--- | :--- | :--- | | Revenue | 10,723 | 9,421 | 9,699 | | Cost of Sales | (6,574) | (5,961) | (5,869) | | Gross Profit | 4,149 | 3,460 | 3,830 | | Selling, General and Administrative Expenses | (2,018) | (1,676) | (1,977) | | Depreciation and Amortisation expense | (1,679) | (1,306) | (1,558) | | Operating Profit | 537 | 566 | 371 | | Profit/(Loss) before income taxes | (322) | 7 | (315) | | Profit/(Loss) for the period | (389) | (52) | (578) | Management-defined Performance Measures (EBITDA) Sify utilizes EBITDA as a management-defined performance measure in its public communications, providing a reconciliation from operating profit. This non-IFRS measure is used to offer comprehensive information on the company's operating performance, though it may not be comparable to similar measures used by other entities - Sify uses Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) as a management-defined performance measure in its public communications[16] - EBITDA is not specified by IFRS Accounting Standards and may not be comparable to similar measures used by other entities[16] | Description | Quarter ended June 2025 (INR Million) | Quarter ended June 2024 (INR Million) | Quarter ended March 2025 (INR Million) | | :--- | :--- | :--- | :--- | | Operating Profit | 537 | 566 | 371 | | Add: Depreciation and Amortisation expense | 1,679 | 1,306 | 1,558 | | Less: Interest expenses on pension liabilities | (1) | - | - | | Less: Impairment loss on Investment | (22) | - | - | | Less: Other Income (including exchange gain/loss) | (82) | (88) | (28) | | EBITDA | 2,111 | 1,784 | 1,901 | Segment Reporting Sify's segment reporting details the financial performance across Network Services, Data Center Services, and Digital Services. For Q1 FY2025-26, Network Services generated INR 4,379 million in external revenue, Data Center Services INR 3,961 million, and Digital Services INR 2,383 million, with Data Center Services showing the highest segment result | Particulars | Network Services (INR Million) | Data Center Services (INR Million) | Digital Services (INR Million) | Total (INR Million) | | :--- | :--- | :--- | :--- | :--- | | External Revenue (June 2025) | 4,379 | 3,961 | 2,383 | 10,723 | | External Revenue (June 2024) | 3,865 | 3,360 | 2,196 | 9,421 | | Segment Result (June 2025) | 633 | 1,791 | (257) | 2,167 | | Segment Result (June 2024) | 555 | 1,428 | (156) | 1,827 | Equity and Debt As of June 2025, Sify reported equity of INR 16,339 million, with long-term borrowings at INR 25,391 million and short-term borrowings at INR 8,791 million. The company's net debt stood at INR 30,321 million, reflecting an increase from the previous year | Particulars | June 2025 (INR Million) | June 2024 (INR Million) | March 2025 (INR Million) | | :--- | :--- | :--- | :--- | | EQUITY | 16,339 | 17,795 | 16,725 | | BORROWINGS (Long term) | 25,391 | 21,997 | 28,237 | | BORROWINGS (Short term) | 8,791 | 7,589 | 7,304 | | Less: Cash Balance | 3,861 | 6,471 | 6,836 | | Net debt | 30,321 | 23,115 | 28,705 | Company Information Sify Technologies is India's comprehensive ICT service provider, focusing on cloud solutions and infrastructure About Sify Technologies Sify Technologies is India's comprehensive ICT service and solution provider, recognized for corporate governance. It focuses on cloud-centric solutions for the digital economy, leveraging state-of-the-art data centers, a large MPLS network, and global technology partnerships to serve over 10,000 businesses across India and internationally - Sify Technologies is India's most comprehensive ICT service & solution provider, with Cloud at the core of its portfolio, addressing the changing ICT requirements of the digital economy[20][21] - Its infrastructure includes state-of-the-art Data Centers, the largest MPLS network, and partnerships with global technology majors[22] - Sify serves over 10,000 businesses across multiple verticals in more than 1700 cities in India, with an international presence in North America, the United Kingdom, and Singapore[23] Important Disclosures This section provides disclaimers for non-IFRS measures and forward-looking statements, and contact information Non-IFRS Measures Disclaimer This section clarifies that EBITDA, as presented, is a non-IFRS financial measure. It emphasizes that such measures may not be comparable to those used by other companies and should not be considered a substitute for IFRS-compliant financial statements - EBITDA is a non-IFRS financial measure, which may be calculated differently from and not comparable to similarly titled measures used by other entities[24] - Non-IFRS measures should not be considered in isolation or as a substitute for financial measures calculated in accordance with IFRS[24] Forward-Looking Statements Disclaimer The press release contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially. Sify disclaims any duty to update these statements and advises readers to consult its Annual Report on Form 20-F for a discussion of associated risks - The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[25] - Sify undertakes no duty to update any forward-looking statements[25] - Readers are advised to refer to the 'Risk Factors' discussion in the company's Annual Report on Form 20-F filed with the SEC for business risks[26] Contact Information This section provides contact details for Sify Technologies' Investor Relations and Public Relations, as well as their media agencies, for further inquiries - Contact information for Sify Technologies' Investor Relations & Public Relations (Mr. Praveen Krishna) and media agencies (20:20 Media, Weber Shandwick) is provided for further information[27][28]