Sify reports Consolidated Financial Results for Q2 FY 2025-26

Core Insights - The company reported revenues of INR 10,533 million, marking a 3% increase year-over-year, and an EBITDA of INR 2,361 million, which is a 20% increase compared to the same quarter last year. However, the company incurred a loss of INR 275 million for the period [9][15]. Management Commentary - The Chairman highlighted India's digital transformation as a critical phase, emphasizing the country's growing role in the global technology ecosystem, particularly in cloud adoption, AI integration, and data center expansion [4]. - The company is focused on investing in hyperscale data centers, network expansion, and AI-ready digital platforms to strengthen its position as a key enabler of enterprise transformation [5]. - The Executive Director and Group CFO reiterated the commitment to fiscal discipline while strategically investing for long-term growth, with ongoing expansion in data centers and digital platforms [6][7]. Financial Highlights - The revenue breakdown for the quarter shows Network Services contributing 41%, Data Center Services 39%, and Digital Services 20% [14]. - The company commissioned an additional 3 MW of data center capacity during the quarter and expanded its fiber node network by 12% year-over-year, reaching 1,196 nodes [14]. - The cash balance at the end of the quarter was INR 4,149 million, reflecting robust liquidity management [7][18]. Customer Engagements - The company secured several significant contracts across various sectors, including network services, data center interconnections, and digital services, indicating strong demand for its offerings [10][14]. - Notable clients include international and Indian banks, insurance companies, and various startups, showcasing the company's diverse customer base and service capabilities [14]. Business Highlights - The company reported a loss before tax of INR 194 million, with a total capital expenditure of INR 3,064 million during the quarter [9][15]. - The operational efficiency and cash flow management have been emphasized as key factors in maintaining a robust liquidity position [7]. Equity and Debt - As of September 2025, the company's equity stood at INR 16,116 million, with long-term borrowings at INR 26,729 million and short-term borrowings at INR 7,823 million, resulting in a net debt of INR 30,403 million [18].