Sify Technologies (SIFY) Q2 2027 Earnings Report

The call was broadly positive. Management reported 31% year-over-year revenue growth and 33% adjusted EBITDA growth, expanding data center and fiber capacity, strong demand exceeding supply, improving pricing and returns in data centers, progress on edge facilities and the Vizag cable landing station, and continued investment in AI-related infrastructure and digital services. The main challenges were sequential data center revenue weakness caused by the absence of one-time implementation income and lower pass-through power revenue, a network margin decline and inherent network pricing pressure, unfinalized IPO timing, and stated cost implications from capacity expansion.

Management said 81 megawatts was deliverable in FY 2027 and is part of the 113 megawatts of contracts scheduled for delivery beginning this quarter over the next 3 quarters; 136 megawatts plus 113 megawatts, or 249 megawatts, will become revenue generating over the next few quarters, while total design capacity after including the backlog to be delivered would be close to about 300 megawatts. The company said its land bank across 7 cities should support more than 1 gigawatt, 2 edge data centers have gone live and other 2 edge data centers are under development, and digital services should get better from here with hopefully a sustainable performance going forward. Network business should continue to see some bit of growth, the company will increase its spend on the network side over time, CapEx is probably about a 80-20 ratio between data center and network, and the Vizag cable landing station will start work following DOT approval.