Sify Technologies Expands Data Centers

Core Insights - Sify Technologies reported a 14% year-over-year revenue increase to 10.723 billion rupees and an 18% rise in EBITDA to 2.111 billion rupees, but incurred a loss after taxes of 388 million rupees on an IFRS basis [1] - The company is expanding its operational data center capacity and shifting its digital services revenue strategy, anticipating further growth and margin improvements within 12 to 18 months [1][7] Data Center Scale-Up and Strategic Capacity Expansion - Total operational data center capacity increased to 138 megawatts (MW) with the addition of 8.6 MW, and new campuses in Delhi and Chennai, each with a design capacity of 26 MW, were launched [2] - Two additional facilities in Mumbai, each planned for 52 MW, are under construction and expected to be operational later this financial year [2] AI-Ready Colocation Model as a Differentiator - Three campuses (Mumbai, Chennai, Noida) are now Nvidia-certified for 130 kilowatts per rack of liquid cooling, and Sify Technologies has introduced a "bring your own GPU" pay-per-use colocation offering targeting enterprise AI and global GPU owners [4][5] - This model allows clients to rent capacity for specialized AI applications without Sify holding GPU inventory risk [4] Deliberate Digital Services Shift Toward Annuity Revenue - The digital services segment's revenue remained flat year over year, contributing 22% to total revenue, as the company transitions from one-time projects to recurring service contracts [5][6] - Management indicated that this transition is compressing segment margins but expects profitability improvements within 12 to 18 months [5][6] Looking Ahead - Management anticipates seeing results from recent investments in data centers and digital services within 12 to 18 months, supported by ongoing capital expenditure and capacity build-outs [7] - While no explicit revenue or margin targets were provided, leadership described double-digit growth for fiscal 2026 as a "wish list" item [7]