Oct 28, 2026 earnings call — Data center and network expansion
Revenue was INR 1.3 million, an increase of 31% year-over-year.
Revenue $0.2B (est $0.2B) · EPS $0.01 (est $0.00)
Key quotes
"We will be delivering this beginning this quarter over the next 3 quarters."
"As far as the network is concerned, you would recall that we started building our national long-distance fiber network on our own."
"The bankers are advising us on the right time to do the IPO. We continue to be engaged with the bankers. And we will communicate once the dates are finalized."
Analyst Q&A 6
Timing and impact of Infinit Spaces IPO
Q (Greg Burns · Sidoti): Analyst asked for an update and expected timing for the Sify Infinit Spaces IPO. He also asked whether the delay was market related and if the delay limits Sify's growth or access to capital.
A: Bankers are advising them on the right time to do the IPO and they remain engaged with the bankers. Management said the delay is not strictly market related, India’s market is pretty good, and they are adequately capitalized for now. They will communicate once dates are finalized.
"The bankers are advising us on the right time to do the IPO." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)
Capacity, IPO deadline, digital services outlook
Q (Prateek Singh · IIFL Capital): Analyst asked whether the 3 megawatt number includes the 81 megawatts deliverable in FY 2027, the currently commissioned build capacity, IPO filing timelines, and whether Sify has support if the IPO is delayed. He also asked about sustainability of digital services and maximum capacity from current land bank.
A: Management confirmed the capacity numbers: 136 plus 113 equals 249 megawatts will become revenue generating over the next few quarters and the under-construction capacity is increasing to about 300 megawatts. There is a timeline for the IPO process up to the end of January and beyond that the process must be restarted; they said they would be supported if IPO delays continue. They said digital services should improve and be sustainable, and their land bank can support more than 1 gigawatt across 7 cities.
"There is a timeline available, which is up to the end of January." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)
Reason for quarter-on-quarter data center revenue drop
Q (Sourabh Arya · Oak Lane): Analyst asked why data center revenue fell quarter-on-quarter despite adding capacity last quarter. He wanted to know what caused the revenue decline.
A: Management said last quarter included one-time implementation revenue from enterprise customers and higher power revenue from existing customers. This quarter did not have implementation revenue and power consumption revenue was a bit lower; power revenue is a pass-through and does not affect net margin.
"To put it the other way around, the current quarter, we did not have any implementation revenue." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)
Backlog timing and network growth drivers
Q (Greg Burns · Sidoti): Analyst asked if the recent data center revenue movement was just timing of backlog deployment and asked what drove the stronger network services growth this quarter and whether it is sustainable.
A: Management said the backlog orders will be delivered beginning this quarter and over the next 3 quarters. They said network revenue is rising because they built a national long-distance fiber network and data center interconnect demand from hyperscale growth is increasing, so they will keep focusing on network growth.
"The backlog orders will get delivered beginning this quarter." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)
Clarify revenue change and capacity rollout
Q (Sourabh Arya · Oak Lane): Analyst rejoined and asked again why revenue changed QoQ, how to think about capacity additions over the next two quarters, and how to read the network business given margins and growth.
A: Management repeated that this quarter lacked enterprise implementation services income (a one-time item) and had lower pass-through power revenue compared with the prior quarter; those are the two reasons for the revenue change. They said 113 megawatts of contracted capacity is scheduled for delivery beginning this quarter over the next 3 quarters. They expect the network business to grow with data center expansion, though unit economics differ and pricing pressure is inherent.
"Unlike quarter 1, this quarter, we did not have any enterprise implementation services income, which typically is a 1-time income." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)
Vizag cable station, peers, and CapEx split
Q (Prateek Singh · IIFL Capital): Analyst asked for an update on the Vizag cable landing station, about competitors in network services, and how CapEx is split between data center, network, and digital.
A: They have received DOT approval for the Vizag cable landing station and will start work on it. They said there are about 4 or 5 good peers in the network business. On CapEx, most spending is on data centers and network with roughly an 80-20 split currently, and they use an asset-light model for network services while planning more network spend over time.
"So the Vizag cable landing station, we have got the DOT approval now." — Muthu Raju Paravasa Raju Vijay Kumar (CFO)