Sify Technologies reported a wider consolidated net loss for the third quarter ended December 31, 2025, even as revenue rose, reflecting continued pressure from depreciation, finance costs and heavy capital spending linked to its infrastructure expansion.Sify
The Chennai-based information and communications technology services provider reported a net loss of ₹32.9 crore, compared with a loss a year earlier, according to its consolidated financial results. Revenue for the quarter rose 11% year on year to ₹1,159.6 crore, supported by growth across its core business segments.
Loss before tax for the quarter stood at ₹25.7 crore, while earnings before interest, tax, depreciation and amortisation increased 29% to ₹247 crore, indicating an improvement in operating performance despite the bottom-line loss.
Chairman Raju Vegesna said India’s technology sector was entering a new phase driven by digital adoption and infrastructure-led growth.
“India’s growth story has moved decisively from promise to performance,” Vegesna said, adding that accelerating digital adoption and policy continuity were positioning the country as a key player in the global technology ecosystem.
He said demand was rising for secure and high-performance digital infrastructure as enterprises and governments increased their focus on artificial intelligence, cloud computing and data-driven platforms.
“At Sify, our strategy is aligned with this inflection point through sustained investments in hyperscale data centres, resilient networks and AI-ready platforms,” Vegesna said, describing these as central to enabling long-term enterprise transformation in India.
The company continued to invest aggressively during the quarter, reporting capital expenditure of ₹345.2 crore as it expanded capacity across data centres, network services and digital solutions. Sify said these investments were aligned with its long-term strategy to build digital infrastructure and enterprise services.
At the end of the quarter, Sify reported a cash balance of ₹362.7 crore, while net debt remained elevated, reflecting the funding requirements of ongoing infrastructure projects.
By business segment, data centre services remained the largest contributor to revenue, followed by network services and digital solutions. The company has positioned itself to benefit from rising enterprise demand for cloud connectivity, managed services and digital transformation, particularly within India.
However, higher depreciation and interest costs associated with infrastructure build-out continued to weigh on profitability, a trend seen across recent quarters.
Sify has reported net losses in multiple periods even as revenue and operating earnings have grown, highlighting the long investment cycle typical of digital infrastructure businesses.
India’s information and communications technology services sector has seen steady demand driven by cloud adoption, data localisation requirements and increased enterprise spending.
At the same time, competitive pricing and rising costs have pressured margins, particularly for mid-sized players investing heavily in capacity expansion.
