Sify Technologies Posts 40 Million Rupee Profit in Second Quarter After Year-Earlier Loss
Key Facts
Sify Technologies reported net profit of 40 million rupees on October 28, 2026, for the quarter ended September 30, in its 2026-27 fiscal year. Unaudited consolidated results prepared under International Financial Reporting Standards showed the company recorded a loss of 275 million rupees in the same quarter a year earlier. It posted a profit of 65 million rupees in the quarter ended June 2026, however, indicating a sequential decline in profit. Revenue was 13,798 million rupees, up 31% from the comparable period. Operating profit also rose to 1,184 million rupees from 709 million a year earlier, according to results data published by the company through GlobeNewswire and carried by Nasdaq.
Adjusted earnings before interest, taxes, depreciation and amortization were 3,131 million rupees, up 33% from the same quarter a year earlier. The company says this measure is not adjusted under International Financial Reporting Standards, so it differs from reported net profit. Meanwhile, interest expense on borrowings and lease liabilities rose to 1,142 million rupees, compared with 914 million a year earlier. Capital expenditure was 8,573 million rupees during the quarter, after 6,708 million in the first quarter of the current fiscal year. The figures show business growth coinciding with increased investment and financing costs.
Cash and bank balances rose to 5,868 million rupees at the end of the quarter, from 4,149 million at the end of the year-earlier comparable period. But net debt increased to 45,331 million rupees, versus 28,736 million a year earlier. The chief financial officer said expansion investments could raise depreciation, interest and employee costs. The company is focusing its investments on increasing data-center capacity, upgrading network infrastructure and strengthening cloud connectivity, while also focusing on cash-flow and cost management. This puts infrastructure expansion alongside higher debt and interest expense at the center of the quarter's results.
Quarterly revenue comprised network services, which accounted for 43%, data-center services at 37% and digital services at 20%. Data-center operating capacity stood at 136 megawatts on September 30, while the company had contracted capacity of 113 megawatts scheduled for delivery. It provided services through 1,264 fiber nodes across the country, up 6% from the same period a year earlier. The company said it completed the long-distance national communications corridor between Hyderabad and Chennai during the quarter. It also received in-principle approval from the Ministry of Communications for two planned subsea cable landing stations.
The company said it signed a large-capacity deal with a global leader in AI cloud computing, while a global consumer-electronics technology company contracted for its first computing capacity in India. It also reported a multiyear renewal with a global enterprise software and cloud infrastructure company. Chairman Raju Vegesna said companies are investing in technology to improve productivity, resilience and customer experience. He added that "the need for secure, scalable and interconnected digital infrastructure will become increasingly important as AI adoption accelerates." The chief financial officer said industry demand exceeds available supply and prices are improving, with no pressure, according to Investing.com, which cited the earnings call.
The results came on a trading day when Sify shares closed at $12.58 on October 28, according to EL7 data. Investing.com reported that the stock fell 1.31% to $12.10 in premarket trading after the results announcement. The announcement had scheduled the earnings call for October 28, 2026, and made a replay available through November 11. Contracted capacity scheduled for delivery offers an indication of plans to increase operating capacity, while data-center and network expansion remain among the investment priorities identified by the chief financial officer. The results also show that revenue and operating profit growth came alongside higher interest expense and net debt.