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Sify Technologies Limited (SIFY)
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Sify Technologies (SIFY) AI Stock Analysis

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SIFY

Sify Technologies

(NASDAQ:SIFY)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
$14.00
▲(11.02% Upside)
Sify Technologies' overall stock score is driven by strong technical indicators and positive revenue growth, but is tempered by financial challenges such as increased leverage and net losses. The absence of clear valuation metrics adds uncertainty, while the earnings call presents a balanced view of growth and challenges.

Sify Technologies (SIFY) vs. SPDR S&P 500 ETF (SPY)

Sify Technologies Business Overview & Revenue Model

Company DescriptionSify Technologies (SIFY) is a leading information and communications technology (ICT) service provider in India, offering a wide range of services including data center services, cloud computing, and enterprise network solutions. The company operates in the IT services sector and serves a diverse clientele across various industries. Its core products include managed services, IT infrastructure management, and digital services, catering to both enterprise and government sectors.
How the Company Makes MoneySify Technologies generates revenue through multiple streams, primarily focusing on IT services, data center services, and telecommunications. Key revenue sources include managed services, which encompass cloud services and IT infrastructure management, and network services, which provide connectivity solutions to enterprises. The company also earns income from its robust data center operations, offering colocation and hosting services. Additionally, Sify has established significant partnerships with global technology companies, enhancing its service offerings and market reach. Factors contributing to its earnings include the growing demand for digital transformation among businesses in India, increased internet penetration, and the rising need for secure and scalable IT infrastructure.

Sify Technologies Earnings Call Summary

Earnings Call Date:Oct 25, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Neutral
Sify Technologies Limited showed positive revenue and EBITDA growth, and continued to expand its data center capacity, which are significant highlights. However, the company also faced challenges with losses before and after tax, flat performance in the digital IT services segment, and increased costs. While there are positive developments, the challenges balance out the positive aspects.
Q1-2026 Updates
Positive Updates
Revenue Growth
Revenue for the quarter was INR 10,723 million, reflecting a 14% increase over the same quarter last year.
EBITDA Increase
EBITDA for the quarter reached INR 2,111 million, an increase of 18% from the same quarter last year.
Data Center Expansion
8.6 megawatts of additional data center capacity were commissioned this quarter. Total operational capacity is now 138 megawatts.
Network Services Growth
Sify Technologies Limited deployed about 9,473 contracted SD-WAN service points across the country.
Negative Updates
Loss Before and After Tax
The company reported a loss before tax of INR 322 million and a loss after tax of INR 388 million.
Challenges in Digital IT Services
The digital IT services segment showed flat top-line performance year-on-year, with increased losses due to ongoing investments in people and capabilities.
Increased Costs
The results reflect the impact of depreciation, interest cost, and increased manpower expenses.
Company Guidance
During the call, Sify Technologies Limited provided guidance on several key metrics for the first quarter of fiscal year 2026. The company reported a revenue of INR 10,723 million, marking a 14% increase compared to the same quarter last year. EBITDA rose by 18% to INR 2,111 million, while the company recorded a loss before tax of INR 322 million and a loss after tax of INR 388 million. Capital expenditure for the quarter was INR 2,874 million. The revenue distribution for the quarter was 41% from network services, 37% from data center colocation services, and 22% from digital IT services. Additionally, Sify commissioned 8.6 megawatts of additional data center capacity, bringing the total operational capacity to 138 megawatts. The company is focusing on long-term value creation and expects to see results from recent investments in the digital IT services segment over the next 12 to 18 months.

Sify Technologies Financial Statement Overview

Summary
Sify Technologies has shown strong revenue growth and asset expansion. However, profitability is challenged by increased leverage and a net loss in 2025. The company needs to address its debt levels and improve net income to enhance financial stability.
Income Statement
55
Neutral
The company shows a consistent revenue growth with a notable increase of 11.9% from 2024 to 2025. However, net profit margin has declined, turning negative in 2025 due to a significant net loss. Gross profit margin remains stable, but the deterioration in net income impacts overall profitability.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has risen, indicating increased leverage which could pose financial risk. However, the equity ratio remains stable, and return on equity has turned negative in 2025 due to the net loss. The balance sheet shows strong total asset growth, supporting the company's expansion.
Cash Flow
50
Neutral
Operating cash flow is positive, reflecting solid cash generation, but free cash flow is negative due to high capital expenditures. The free cash flow to net income ratio is unfavorable, influenced by the net loss in 2025. The operating cash flow to net income ratio indicates good operational profitability despite challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue41.19B39.89B35.63B33.40B27.03B24.32B
Gross Profit15.66B14.97B13.26B12.03B10.98B9.62B
EBITDA8.37B8.09B5.75B6.50B6.18B5.22B
Net Income-1.17B-784.96M48.94M674.52M1.26B1.53B
Balance Sheet
Total Assets0.0083.18B70.98B57.40B47.07B36.66B
Cash, Cash Equivalents and Short-Term Investments6.30B6.30B5.39B3.65B3.78B5.10B
Total Debt0.0039.51B33.54B22.93B17.46B11.74B
Total Liabilities-20.13B63.05B46.95B40.26B32.59B23.50B
Stockholders Equity20.13B20.13B24.03B17.15B14.48B13.17B
Cash Flow
Free Cash Flow0.00-3.67B-7.39B-4.87B-5.13B3.21B
Operating Cash Flow0.008.65B4.98B8.34B2.24B6.97B
Investing Cash Flow0.00-12.32B-12.26B-13.59B-7.59B-3.62B
Financing Cash Flow0.004.73B7.44B4.94B4.17B618.37M

Sify Technologies Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.61
Price Trends
50DMA
11.99
Positive
100DMA
8.78
Positive
200DMA
6.51
Positive
Market Momentum
MACD
0.17
Positive
RSI
45.81
Neutral
STOCH
18.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIFY, the sentiment is Neutral. The current price of 12.61 is below the 20-day moving average (MA) of 14.05, above the 50-day MA of 11.99, and above the 200-day MA of 6.51, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SIFY.

Sify Technologies Risk Analysis

Sify Technologies disclosed 78 risk factors in its most recent earnings report. Sify Technologies reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sify Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$1.25B16.4727.60%0.46%2.13%18.44%
61
Neutral
$944.90M10.20%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
58
Neutral
$1.29B218.089.39%72.74%-90.17%
54
Neutral
$1.68B-103.84%-2.15%-1269.05%
51
Neutral
$698.84M-19.49-3.93%0.76%16.73%-237.78%
48
Neutral
$892.93M-30.85%7.33%-5.43%-363.95%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIFY
Sify Technologies
12.33
8.84
253.30%
IDT
IDT
50.68
3.93
8.41%
SHEN
Shenandoah Telecommunications Co
13.12
-1.74
-11.71%
GOGO
Gogo
9.77
2.55
35.32%
LILA
Liberty Global LiLAC
8.60
-1.34
-13.48%
CABO
Cable ONE
161.06
-177.43
-52.42%

Sify Technologies Corporate Events

Sify Infinit Spaces Files for IPO to Raise ₹37,000 Million
Oct 17, 2025

On October 17, 2025, Sify Technologies Limited announced that its wholly owned subsidiary, Sify Infinit Spaces Limited (SISL), filed a draft red herring prospectus for an initial public offering (IPO) with the Securities and Exchange Board of India and Indian stock exchanges. The IPO aims to raise up to ₹25,000 million through fresh equity shares and ₹12,000 million from existing shareholders, subject to regulatory approvals and market conditions. This move is expected to enhance Sify’s market positioning and provide capital for growth, though it is contingent on various factors including market conditions.

Sify Technologies Amends Agreements Ahead of Proposed IPO
Oct 14, 2025

On September 25, 2025, Sify Technologies Limited and its subsidiary, Sify Infinit Spaces Limited, amended agreements with Kotak Special Situations Fund and Kotak Data Centre Fund to align with a proposed initial public offering (IPO) of Sify Infinit Spaces Limited. These amendments include waiving certain rights and obligations, allowing for a capital raise of up to INR 25 billion through the IPO. If the IPO proceeds as planned, it will result in the conversion of all compulsorily convertible debentures into equity shares, terminating existing agreements and potentially impacting the company’s financial structure and market positioning.

Sify Technologies’ Subsidiary SISL Plans IPO Following Board Approval
Sep 26, 2025

On September 25, 2025, Sify Technologies Limited announced that its subsidiary, Sify Infinit Spaces Limited (SISL), received board approval to pursue an initial public offering (IPO) of its equity shares. This move, disclosed to BSE Ltd., signifies a strategic step for Sify to potentially expand its market presence and financial capabilities. The IPO could have significant implications for Sify’s operations and positioning in the ICT industry, potentially attracting new investors and enhancing its capital structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 18, 2025