In its Q1 FY26 results, Sify Technologies signaled a strong vote of confidence in India’s digital growth story—even as it reported a net loss of ₹389 million for the quarter. The company’s revenues rose 14% year-on-year to ₹10,723 million, with EBITDA climbing 18% to ₹2,111 million, driven by continued momentum across its network, data center, and digital services verticals.
While short-term profitability was impacted by depreciation, interest costs, and planned investments, the management emphasized that these were strategic trade-offs aimed at building future-ready infrastructure.
The Long View: Investing for India’s AI-Powered Decade
Chairman Raju Vegesna struck an optimistic note, stating, “India is entering a new generation of IT transformation. Government programs like Digital India and the India AI Mission are catalyzing rapid investment in cloud, compute, and connectivity. India is not just consuming AI; it’s creating it.”
He added that national ambition, policy support, and industry innovation are creating a “perfect storm” for infrastructure-led growth.
ED & Group CFO M.P. Vijay Kumar echoed the long-term focus, saying, “Despite near-term financial strain, our investment strategy remains disciplined and geared toward sustainable value creation.”
Operational and Strategic Milestones:
-Commissioned 8.6 MW of new data center capacity
-Expanded fiber network to 1,159 nodes (↑10% YoY)
-Deployed 9,661 SD-WAN service points across India
Revenue Breakdown by Business Line:
-Network Services: 41% of revenue
-Data Center Services: 37%
-Digital Services: 22%
Sify signed a series of high-profile contracts across sectors:
Network Services: Engaged with global IT players, foreign banks, FMCG and telecom majors for NLD, MPLS, SD-WAN and cloud connectivity
Data Center Services: Onboarded clients migrating from competitor DCs and signed new DR contracts
Digital Services: Saw demand for cloud migration, DRaaS, PaaS, IaaS, and on-premise private cloud and security solutions
Despite short-term losses, Sify’s results point to a business positioning itself for the long haul—aligned with India’s growing appetite for scalable, AI-ready digital infrastructure.