Sify Technologies Q3 Earnings Call Highlights

Core Insights - Sify Technologies reported a strong demand for data center colocation, with 9.1 megawatts (MW) sold in the latest quarter, and emphasized fiscal discipline while making strategic investments in infrastructure to support long-term growth [1][4] Financial Performance - For Q3 fiscal 2025-26, Sify's revenue reached INR 11,596 million, reflecting an 11% year-over-year increase, while EBITDA grew by 29% to INR 2,470 million. However, the company reported a loss after tax of INR 3,290 million [7][8][9] Data Center Capacity and Expansion - Sify has a total design capacity of 188 MW, with 130 MW ready for service and 127 MW sold. The company expects to add approximately 125 MW from four upcoming facilities, with typical EBITDA margins for data centers around 44-45% [6][10][14] Strategic Initiatives - The company is pursuing an IPO for Sify Infinite Spaces, targeting a total issue of INR 3,700 crore to fund data center expansion and refinance debt. A strategic partnership with Google for a cable landing station in Vishakhapatnam was also highlighted [5][17] Network Services and Partnerships - Sify's network revenue has been relatively flat due to price corrections and a shift towards internet connectivity solutions. The company is managing costs to protect margins and anticipates growth in the network business alongside data center expansion [18][19] Digital Services and Future Expectations - The digital services segment continues to operate at a loss, but management expects to reach break-even by the latter part of fiscal 2026-27, focusing on core service areas such as cloud and managed services [20] AI and Infrastructure Readiness - Sify's data centers are being equipped with NVIDIA-certified capabilities and liquid cooling systems, with incremental costs for liquid cooling estimated at approximately $1.3 million per MW [23]