Sify reports Consolidated Financial Results for Q2 FY 2026-27

Higher operating profit accompanied increased interest expense and net debt, while quarterly net profit remained below June's level.

Rhea-AI Summary

Sify Technologies (SIFY) reported revenue of INR 13,798 million for the second quarter of FY 2026-27, up 31% year over year. Adjusted EBITDA, a non-IFRS earnings measure, rose 33% to INR 3,131 million. Net profit was INR 40 million, versus a loss of INR 275 million a year earlier and profit of INR 65 million in June 2026.

Network, data center and digital services each increased quarterly revenue year over year. Operating profit rose to INR 1,184 million from INR 709 million. Capital expenditure was INR 8,573 million, while borrowing and lease interest expense increased to INR 1,142 million from INR 914 million. Cash and bank balances reached INR 5,868 million; net debt rose to INR 45,331 million from INR 28,736 million a year earlier.

Operational data center capacity stood at 136 MW on September 30, 2026, with a subsidiary's contracted capacity of 113 MW scheduled for delivery.

35 points · 0 major

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Positive

• Moderate pointQuarterly revenue rose 31% year over year to INR 13,798 million.
• Moderate pointAdjusted EBITDA, a non-IFRS measure, increased 33% year over year to INR 3,131 million.
• Moderate pointOperating profit increased to INR 1,184 million from INR 709 million a year earlier.
• Moderate pointGross profit increased to INR 5,003 million from INR 4,239 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Contracted data center capacity of 113 MW at the subsidiary is scheduled for delivery.

30 minor points

• Minor pointQuarterly net profit reached INR 40 million versus a year-earlier INR 275 million loss, but fell from June's INR 65 million.
• Minor pointSelling, general and administrative expenses fell to INR 1,858 million from INR 1,871 million a year earlier.
• Minor pointNetwork services revenue increased to INR 5,879 million from INR 4,280 million a year earlier.
• Minor pointData center services revenue increased to INR 5,172 million from INR 4,150 million a year earlier.
• Minor pointDigital services revenue increased to INR 2,747 million from INR 2,103 million a year earlier.
• Minor pointNetwork segment result increased to INR 915 million from INR 790 million a year earlier.
• Minor pointData center segment result increased to INR 2,301 million from INR 1,924 million a year earlier.
• Minor pointDigital segment result turned positive at INR 19 million versus a year-earlier INR 284 million loss.
• Minor pointHalf-year revenue increased to INR 26,150 million from INR 21,256 million a year earlier.
• Minor pointHalf-year adjusted EBITDA increased to INR 6,136 million from INR 4,472 million a year earlier.
• Minor pointHalf-year net profit reached INR 105 million versus a year-earlier INR 664 million loss.
• Minor pointHalf-year operating profit increased to INR 2,300 million from INR 1,246 million a year earlier.
• Minor pointHalf-year network revenue increased to INR 10,637 million from INR 8,659 million a year earlier.
• Minor pointHalf-year data center revenue increased to INR 10,454 million from INR 8,111 million a year earlier.
• Minor pointHalf-year digital revenue increased to INR 5,059 million from INR 4,486 million a year earlier.
• Minor pointHalf-year network segment result increased to INR 1,847 million from INR 1,423 million a year earlier.
• Minor pointHalf-year data center segment result increased to INR 4,595 million from INR 3,715 million a year earlier.
• Minor pointHalf-year digital segment loss narrowed to INR 116 million from INR 541 million a year earlier.
• Minor pointCash and bank balances increased to INR 5,868 million from INR 4,149 million a year earlier.
• Minor pointEquity increased to INR 19,195 million from INR 16,116 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Infrastructure investment plans include expanding data center capacity, modernizing networks and enhancing cloud interconnections.
• Minor pointHyderabad–Chennai national long-distance corridor rollout was completed during the quarter.
• Minor pointNetwork contracts added financial-market, professional-services, insurance, e-commerce and non-banking financial customers.
• Minor pointHyperscale internet capacity was delivered to a Chennai data center supporting GPU-based AI workloads.
• Minor pointData center capacity contracts added consumer-electronics, AI cloud, computing, business-communication and semiconductor customers.
• Minor pointExisting data center customers expanded capacity, including a technology conglomerate, an internet exchange and two banks.
• Minor pointMulti-year data center renewal was signed with an enterprise software and cloud infrastructure provider.
• Minor pointData center migration contracts included a competitor-site transfer and moves from customers' own facilities.
• Minor pointDisaster recovery capacity was contracted by a regional bank.
• Minor pointDigital services contracts added managed cloud, insurance network management and security refresh, and quick-commerce LAN/WiFi infrastructure.

Negative

• Moderate pointNet debt rose to INR 45,331 million from INR 28,736 million a year earlier.
• Moderate pointBorrowing and lease interest expense rose to INR 1,142 million from INR 914 million a year earlier.
• Moderate pointQuarterly capital expenditure was INR 8,573 million.
• Minor pointLong-term borrowings increased to INR 36,109 million from INR 26,729 million a year earlier.
• Minor pointShort-term borrowings increased to INR 18,572 million from INR 7,823 million a year earlier.

5 minor points

• Minor pointDepreciation and amortisation increased to INR 2,012 million from INR 1,740 million a year earlier.
• Minor pointCost of sales increased to INR 8,795 million from INR 6,294 million a year earlier.
• Minor pointHalf-year borrowing and lease interest expense increased to INR 2,164 million from INR 1,751 million a year earlier.
• Minor pointHalf-year depreciation and amortisation increased to INR 3,932 million from INR 3,419 million a year earlier.
• Minor pointTwo upcoming cable landing stations received only provisional Department of Telecom clearance.

News Explained

During the quarter, Sify reports new customer contracts across network, data-center and digital services, including connectivity, compute capacity and managed services.

Key Figures

Revenue: INR 13,798 million Adjusted EBITDA: INR 3,131 million Profit for the period: INR 40 million +5 more

Revenue

INR 13,798 million

Q2 FY 2026-27; up 31% year over year

Adjusted EBITDA

INR 3,131 million

Q2 FY 2026-27; up 33% year over year

Profit for the period

INR 40 million

Q2 FY 2026-27

CAPEX

INR 8,573 million

During the quarter

Cash balance

INR 5,868 million

At quarter-end

Net debt

INR 45,331 million

Quarter ended September 2026

Operational data center capacity

136 MW

As of September 30, 2026

Contracted data center capacity

113 MW

Scheduled for delivery

Previous Earnings Reports

2 past events · Latest: Oct 25

Same Type 2 events

1. Oct 25

   Q2 earnings

   24h Move

   -1.8%

   Comparable Q2 results reported revenue, EBITDA, and a quarterly loss.

2. Jul 15

   Q1 earnings

   24h Move

   -4.1%

   The preceding-quarter report provides comparable revenue, adjusted EBITDA, and profit results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ifrs, adjusted ebitda, non-ifrs, data centre interconnect (dci)

4 terms

ifrs financial

"Unaudited Consolidated Income Statement as per IFRS"

International Financial Reporting Standards (IFRS) are a set of common accounting rules used by many companies worldwide to prepare financial statements, so numbers like revenue, profit and assets are measured in the same way across borders. For investors, IFRS matters because it makes it easier to compare the financial health and performance of different companies—like using the same ruler to measure different objects—reducing surprises and helping informed investment decisions.

adjusted ebitda financial

"adjusted EBITDA is referred to as “non-IFRS” measure."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-ifrs financial

"adjusted EBITDA is referred to as “non-IFRS” measure."

Non-IFRS refers to financial measures that companies report outside the standard accounting rules set by the International Financial Reporting Standards; these figures exclude or adjust certain items such as one-time costs, stock-based pay, or restructuring charges. Investors care because non-IFRS numbers try to show the business’s underlying performance — like a chef presenting a dish with optional toppings removed to highlight the core flavor — but they can be shaped to look more favorable, so compare them with the official IFRS statements.

data centre interconnect (dci) technical

"branch-to-data-centre connectivity and Data Centre Interconnect (DCI) links."

A data centre interconnect (DCI) is a high-capacity network connection—often dedicated fiber, wavelength services, or virtual circuits—that links two or more separate data centre facilities so they can share storage, compute and networking resources. DCIs carry large volumes of traffic with low latency and built-in redundancy to support functions such as live data replication, disaster recovery, workload migration and load balancing between sites. The term specifically denotes the physical or logical links between distinct data centres, not the internal network inside a single facility.

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Revenues of INR 13798 Million. Adjusted EBITDA of
INR 3131 Million. Profit for the period INR 40 Million.

CHENNAI, India, Oct. 28, 2026 (GLOBE NEWSWIRE) --

DETAILS OF EARNING CALL           October 28, 2026 | 8:30 AM ET | 06:00 PM IST

Participant Dial in:

To join: +1- 877-545-0320 (Toll Free in the U.S. or Canada) or +1-973-528-0002 (International) | Access Code: 656813

On the call: Mr. Raju Vegesna, Chairman of the Board and Mr. M P Vijay Kumar, Executive Director & Group CFO

Live webcast: https://www.webcaster5.com/Webcast/Page/2184/54697

Replay: +1-877-481-4010 (Toll Free in the U.S. or Canada) or +1-919-882-2331 (International). Replay Passcode 54697

Replay is available until November 11, 2026

HIGHLIGHTS

• Revenue was INR 13798 Million, an increase of 31% over the same quarter last year.
• Adjusted EBITDA was INR 3131 Million, an increase of 33% over the same quarter last year.
• Profit for the quarter was INR 40 Million.
• CAPEX during the quarter was INR 8573 Million.

MANAGEMENT COMMENTARY

Mr. Raju Vegesna, Chairman, said, “India's digital transformation is entering a phase of execution at scale. What was once a digital transformation agenda has now become a business imperative, with organizations investing in technology to improve productivity, resilience, and customer experience.

The country continues to benefit from a unique combination of progressive policy initiatives, expanding digital infrastructure, and a deep pool of technology talent. As AI adoption gathers pace, the need for secure, scalable, and interconnected digital infrastructure will become even more critical. This presents a significant opportunity for India to strengthen its position as a global technology and innovation hub.

At Sify, we continue to align our investments with these long-term trends. Our integrated portfolio of Data Centers, Networks, and Digital Services enables us to support customers as they modernize their technology environments and prepare for an AI-enabled future.

India is no longer preparing for the digital future—it is actively shaping it. Sify remains committed to building the infrastructure and capabilities that will help power this next chapter of growth.”

Mr. M P Vijay Kumar, ED & Group CFO, said, “We continue to strengthen our businesses through sustained investments in infrastructure, technology platforms and people, aligned with the evolving needs of our customers and the long-term opportunities in India's digital economy.

Our investment priorities remain focused on expanding our Data Center capacity, modernizing our network infrastructure, enhancing our cloud interconnect capabilities and strengthening the tools and platforms that support operational efficiency and customer delivery. Equally, we continue to invest in developing our people, building the skills and capabilities required to support emerging technologies and deliver consistent outcomes across our businesses.

These investments are being pursued alongside a continued emphasis on cost competitiveness, resource optimization and cash flow management. While capacity expansion and capability building have implications for depreciation, interest and manpower costs, we remain focused on ensuring that capital allocation is supported by sound financial planning, prudent risk management and long-term business objectives.

Our priority is to maintain a strong balance sheet and adequate financial flexibility while investing for sustainable growth and creating enduring value for our shareholders.

The cash balance at the end of the quarter was INR 5868 Million.”

BUSINESS HIGHLIGHTS 

• The Revenue split between the businesses for the quarter was Network services 43%, Data Center services 37% and Digital services 20%.
• As on Sep 30, 2026, data center operational capacity stood at 136 MW. The subsidiary has a contracted capacity of 113 MW scheduled for delivery.
• As on September 30, 2026, Sify provides services via 1264 fiber nodes across the country, a 6% increase over same quarter last year.
  

CUSTOMER ENGAGEMENTS

Among the most prominent new contracts were the following:

Network Services

• A leading national financial-market infrastructure institution contracted to connect its central facility with its data centres in multiple cities.
• A global professional-services and technology major contracted to connect its office locations across India through Sify’s differentiated Hub Internet model.
• One of India’s largest insurance companies contracted for branch-to-data-centre connectivity and Data Centre Interconnect (DCI) links.
• The business delivered hyperscale internet capacity to a large data centre in Chennai, built to carry GPU-based AI training and inference workloads.
• The business was contracted by one of the largest e-commerce players to connect its fulfilment facilities, supporting its instant-delivery operations.
• Sify signed a combined network and managed-services contract from one of India’s largest non-banking financial companies.
• During the quarter, Sify Technologies received provisional clearance from the Department of Telecom for two of its upcoming cable landing stations.
• Sify also completed the rollout of its Hyderabad - Chennai National long-distance corridor during the quarter.

Data Center Services

• A global multinational technology company into consumer electronics contracted for their first compute capacity in India.
• An American multinational technology conglomerate and India's largest carrier-neutral, data center-neutral Internet Exchange Point expanded their contracted capacities at multiple locations.
• The business signed a major capacity deal with a global leader in AI Cloud compute.
• A global leader in personal computing, cloud and artificial intelligence contracted for their node in one of the newer facilities.
• A leader in business communication contracted for Edge compute capacity.
• A global leader in semi-conductor technology contracted for their first capacity in India.
• The business signed a multi-year renewal contract with a global leader in enterprise software and cloud infrastructure.
• A global trading and distribution major contracted to move their capacity from a competitor facility.
• A regional bank and a technology player contracted to move from their on-prem facility to one of Sify’s facilities.
• Two prominent banks signed up to expand their current capacity.
• A regional bank contracted to set up their disaster recovery set up in Sify’s facility.
  

Digital services

• One of India’s oldest FMCG player contracted for managed cloud services.
• One of India’s largest insurance companies signed up for network managed services and security infrastructure refresh.
• A global quick commerce major contracted for LAN and WiFi infrastructure across its entire delivery footprint.
  

FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per IFRS
(In INR millions)
Description	Quarter ended		Quarter ended		Quarter ended		Year ended		Half year ended		Half year ended
	September 2026		September 2025		June 2026		March 2026		September 2026		September 2025
							(Audited)
Revenue	13,798		10,533		12,352		44,877		26,150		21,256
Cost of Sales	(8,795	)	(6,294	)	(7,462	)	(26,843	)	(16,257	)	(12,868	)
Gross Profit	5,003		4,239		4,890		18,034		9,893		8,388
Other Operating Income	51		81		45		376		96		166
Selling, General and Administrative Expenses	(1,858	)	(1,871	)	(1,899	)	(8,123	)	(3,757	)	(3,889	)
Depreciation and Amortisation expense	(2,012	)	(1,740	)	(1,920	)	(7,274	)	(3,932	)	(3,419	)
Operating Profit	1,184		709		1,116		3,013		2,300		1,246
Investment Income	72		16		70		34		142		16
Impairment loss on Investment	-		(4	)	-		(26	)	-		(26	)
Profit before financing and income taxes	1,256		721		1,186		3,021		2,442		1,236
Finance income	4		-		-		1		4		1
Interest expenses on borrowings and lease liabilities	(1,142	)	(914	)	(1,022	)	(3,950	)	(2,164	)	(1,751	)
Interest expenses on pension liabilities	(1	)	(1	)	-		(13	)	(1	)	(2	)
Profit/(Loss) before income taxes	117		(194	)	164		(941	)	281		(516	)
Income Tax Expense	(77	)	(81	)	(99	)	(425	)	(176	)	(148	)
Profit/(Loss) for the period	40		(275	)	65		(1,366	)	105		(664	)
Profit attributable to:
Reconciliation with Non-GAAP measure
Profit/(Loss) for the period	40		(275	)	65		(1,366	)	105		(664	)
Add:
Depreciation and Amortisation expense	2,012		1,740		1,920		7,274		3,932		3,419
Net Finance Expenses	1,138		841		1,022		3,949		2,160		1,606
Current Tax	159		103		122		487		281		225
Deferred Tax	-		-		-		-		-		-
Less:
Deferred Tax	(82	)	(22	)	(23	)	(62	)	(105	)	(77	)
Other Income (including exchange gain/loss)	(136	)	(26	)	(101	)	(411	)	(237	)	(37	)
Adjusted EBITDA	3,131		2,361		3,005		9,871		6,136		4,472

Segment Reporting: (In INR millions)
	Quarter ended September 2026								Quarter ended September 2025
Particulars	Network Services		Data Center Services		Digital Services		Total		Network Services		Data Center Services		Digital Services		Total
	(A)		(B)		( C)		(D)= (A)+(B)+(C)		(A)		(B)		( C)		(D)= (A)+(B)+(C)
External customers Revenue	5,879		5,172		2,747		13,798		4,280		4,150		2,103		10,533
Intersegment Revenue			22		55		77		-		22		55		77
Operating Expense	(4,901	)	(2,893	)	(2,769	)	(10,563	)	(3,427	)	(2,248	)	(2,428	)	(8,103	)
Intersegment Expense	(63	)	-		(14	)	(77	)	(63	)	-		(14	)	(77	)
Segment Result	915		2,301		19		3,235		790		1,924		(284	)	2,430
Unallocated Expense:
Support Service Unit Costs							(90	)							(62	)
Depreciation and Amortisation							(2,012	)							(1,740	)
Other income / (expense), net							123								93
Finance Income							4
Finance Expense							(1,143	)							(915	)
Profit / (loss) before tax							117								(194	)
Income taxes (expense) / benefit							(77	)							(81	)
Profit / (loss) for the period							40								(275	)
	Half year ended September 2026								Half year ended September 2025
Particulars	Network Services		Data Center Services		Digital Services		Total		Network Services		Data Center Services		Digital Services		Total
	(A)		(B)		( C)		(D)= (A)+(B)+(C)		(A)		(B)		( C)		(D)= (A)+(B)+(C)
External customers Revenue	10,637		10,454		5,059		26,150		8,659		8,111		4,486		21,256
Intersegment Revenue			44		110		154				44		110		154
Operating Expense	(8,664	)	(5,903	)	(5,257	)	(19,824	)	(7,110	)	(4,440	)	(5,109	)	(16,659	)
Intersegment Expense	(126	)	-		(28	)	(154	)	(126	)			(28	)	(154	)
Segment Result	1,847		4,595		(116	)	6,326		1,423		3,715		(541	)	4,597
Unallocated Expense:
Support Service Unit Costs							(190	)							(98	)
Depreciation and Amortisation							(3,932	)							(3,419	)
Other income / (expense), net							238								156
Finance Income							4								1
Finance Expense							(2,165	)							(1,753	)
Profit / (loss) before tax							281								(516	)
Income taxes (expense) / benefit							(176	)							(148	)
Profit / (loss) for the period							105								(664	)

Equity and Debt:  (In INR millions)
	Quarter ended September 2026	Quarter ended September 2025	Year ended Mar 2026
EQUITY	19,195	16,116	18,933
BORROWINGS
Long-term	36,109	26,729	23,205
Short-term	18,572	7,823	15,400
Less: Cash and Bank Balances	5,868	4,149	5,071
Less: Deposits lien marked towards loan	3,482	1,667	2,139
Net debt	45,331	28,736	31,395

Non-IFRS Measures 

This press release contains a financial measure not prepared in accordance with IFRS. In particular, adjusted EBITDA is referred to as “non-IFRS” measure. The non-IFRS financial measure we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies - refer to the reconciliation provided in the table labelled Financial Highlights for more information. In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures calculated in accordance with IFRS, and our financial results calculated in accordance with IFRS and reconciliation to those financial statements should be carefully evaluated.

About Sify Technologies

A multiple times Golden Peacock award winner for Corporate Governance, and with AI at the core of our solutions portfolio, Sify is focussed on the changing ICT requirements of the emerging digital landscape and the resultant demands from large, mid and small-sized businesses. 

Sify’s infrastructure comprising state-of-the-art data centers, the largest MPLS network, partnership with global technology majors and deep expertise in business transformation solutions modelled on the cloud, make it the first choice of large enterprises, start-ups and SMEs looking to scale.

Businesses across multiple verticals have taken advantage of our unassailable trinity of Data Centers, Networks and Security services and conduct their business seamlessly from across India. Internationally, Sify has presence across North America, the United Kingdom and Singapore.

Sify, Sify Technologies, Sify Infinit Spaces, www.sifytechnologies.com and www.sifyinfinitspaces.com are registered trademarks of Sify Technologies Limited.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements.

For a discussion of the risks associated with Sify’s business, please see the discussion under the caption “Risk Factors” in the company’s Annual Report on Form 20-F for the year ended March 31, 2026, which has been filed with the United States Securities and Exchange Commission and is available by accessing the database maintained by the SEC at www.sec.gov, and Sify’s other reports filed with the SEC.

For further information, please contact:

Sify Technologies Limited Mr. Praveen Krishna Sustainability, Investor Relations & Public Relations +91 9840926523 praveen.krishna@sifycorp.com

Publicis Group Nikhila Kesavan +91 9840124036 nikhila.kesavan@publicisconsultants-asia.com

Luri Group Lucia Domville 646.824.2856 lucia.domville@lurigroup.co

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Sify's Q2 FY 2026-27 revenue and adjusted EBITDA?

Sify reported revenue of INR 13,798 million, up 31% year over year, and adjusted EBITDA of INR 3,131 million, up 33%. Adjusted EBITDA is a non-IFRS financial measure.

What was Sify's revenue mix in Q2 FY 2026-27?

Network services contributed 43% of quarterly revenue, data center services contributed 37%, and digital services contributed 20%.

How large was Sify's fiber network at September 30, 2026?

Sify provided services through 1,264 fiber nodes across India as of September 30, 2026, a 6% increase over the same quarter last year.

How should investors interpret Sify's adjusted EBITDA?

Adjusted EBITDA is not prepared under IFRS and should not replace IFRS financial measures. Sify cautions that its calculation may differ from similarly named measures used by other companies and provides a reconciliation to its financial results.