Sify(US:SIFY)2026-01-13 14:32Financial Data and Key Metrics Changes - Revenue for Q3 FY 2025-26 was INR 11,596 million, an increase of 11% compared to the same quarter last year [8] - EBITDA was INR 2,470 million, reflecting a 29% increase year-over-year [8] - Loss before tax was INR 2,570 million, and after tax, the loss was INR 3,290 million [8] - Capital expenditure during the quarter was INR 3,452 million, with a cash balance of INR 3,627 million at the end of the quarter [8] Business Line Data and Key Metrics Changes - Revenue split for the quarter: Network services 37%, Data center colocation services 40%, Digital services 23% [7] - Data center colocation capacity sold was 9.1 megawatts [7] - Network services provided via 1,214 fiber nodes, a 9% increase year-over-year [7] Market Data and Key Metrics Changes - The company has deployed 9,695 SD-WAN service points across India as of December 31, 2025 [7] Company Strategy and Development Direction - The company is focused on investments in hyperscaler data centers, resilient networks, and AI-driven platforms to support enterprise transformation in India [5][6] - The strategy aligns with India's growth in digital infrastructure and cloud services, driven by increasing demand for secure and high-performance digital infrastructure [5] Management's Comments on Operating Environment and Future Outlook - Management highlighted India's strong economic fundamentals and accelerating digital adoption as key drivers for growth [5] - The company expects to achieve break-even in the digital services segment by the latter part of FY 2026-27, depending on market scaling for new offerings [18] Other Important Information - The company filed a draft prospectus for the IPO of Infinite Spaces in October 2025, expecting approval soon [13][14] - Total design capacity is 188 megawatts, with 130 megawatts ready for service and 127 megawatts sold [15] Q&A Session Summary Question: Update on the timing for the IPO of Infinite Spaces - The draft prospectus was filed in October 2025, with expected approval this month, followed by market listing [13][14] Question: Total design capacity and sold capacity - Total design capacity is 188 megawatts, with 130 megawatts ready for service and 127 megawatts sold [15] Question: Roadmap for new data center construction - Two facilities in Rabale will go live this calendar year, with two additional greenfield projects under construction [16] Question: Digital services operating at a loss - Expected to reach break-even in the latter part of FY 2026-27, with profitability anticipated thereafter [18] Question: Revenue-generating capacity from sold capacity - Out of 12.16 megawatts sold, approximately 4 megawatts will generate revenue in the upcoming quarter [22] Question: Average contract tenure and return on capital employed - Hyperscale contracts are typically for seven years, with enterprise contracts for five years [39] - Return on capital employed for fully populated facilities is in the high teens [40] Question: Use of proceeds from the IPO - Proceeds will primarily fund data center expansion, with some allocated for debt reduction [41] Question: Related party disclosures in the DRHP - Revenue and expense transfers relate to contracts signed by the parent company before the data center business was carved out [61] Question: Growth of the network business - The network business experienced price corrections and a shift from MPLS to internet services, impacting revenue [71] Question: AI investment and capacity upgrades - Incremental CapEx for AI workloads is marginal, with some costs borne by customers [79][84]