Sify Technologies (SIFY) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 87.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: 5.81%
• EPS Growth: N/A
• Country: US
• Employees: 4,319
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): >-0.01
• Shares Outstanding: 72,221,900
• 10 Day Avg. Volume: 94,538
• 30 Day Avg. Volume: 87,334
• PEG Ratio: 0.03
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -6.21
• Enterprise Value/Market Cap: 122.09
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 9.63
• Enterprise Value/Ebitda: 16.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $657.75M

• Rating: 62 Neutral
• Price Target: $15.00 ▲(37.74% Upside)

The score is held back most by weakened profitability, rising leverage, and negative free cash flow from heavy capex. Offsetting this, technicals show a clear uptrend with supportive momentum, and the latest earnings call points to strong data-center demand and EBITDA growth—though funding execution and ongoing net losses remain key risks.

Positive Factors

Data-center Capacity Monetization

Near‑full monetization of deployed capacity gives multi‑quarter revenue visibility and supports steady utilization as the firm scales. High initial absorption reduces ramp risk on new builds, improving forecastability of cash flows and unit economics as incremental capacity is commercialized.

Attractive Data-center Economics

Sustained ~44–45% EBITDA margins and high‑teens ROCE on stabilized sites indicate durable unit economics. These margins support reinvestment and debt servicing, give pricing flexibility versus competitors, and make incremental MWs highly value-accretive once sites stabilize.

Long-term Contract Tenors

Multi‑year hyperscaler and enterprise contracts materially reduce revenue volatility and underwrite capital intensity of data‑center builds. Long tenors improve predictability of cash flows, lower churn risk, and strengthen the company's ability to secure project financing and amortize upfront infrastructure costs.

Negative Factors

Net Loss Despite Operating Strength

Ongoing net losses driven by depreciation, interest and non‑operating items erode retained earnings and equity returns despite strong EBITDA. Persistent bottom‑line deficits can force reliance on external funding or equity issuance, weakening financial flexibility and diluting long‑term shareholder value.

Heavy CapEx and Funding Dependence

Large, ongoing capex drives negative free cash flow and makes growth contingent on successful capital markets execution. Dependence on the Infinit Spaces IPO and external financing creates execution and timing risk; delays or weaker funding conditions could slow expansion or raise borrowing costs long term.

Rising Leverage & Negative Free Cash Flow

Increased leverage combined with negative free cash flow tightens liquidity and raises interest burden, constraining strategic flexibility. Higher debt levels amplify refinancing risk and can limit the firm’s ability to fund organic growth or opportunistic investments without costly capital or asset sales.

Sify Technologies Business Overview & Revenue Model

Company Description

Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The Network Centric Services segment offers internet, internet protocol and multi-protocol label switching virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, managed services, dedicated internet access, and proactive monitoring and management of the network and devices. The Data Center Services segment provides co-location services; and managed data center services, such as storage and back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. The Digital Services segment offers managed network services; EDGE services; cloud and managed services including cloud and storage solutions, managed services, value added services, domestic and international managed services; and technology integration services include system integration, data centers build, network, security solutions, remote and onsite infrastructure management, managed security services, as well as sale of hardware and software. This segment also offers applications integration services, such as talent management, supply chain management, online assessment, web development, document management, content, digital signature, digital certificate-based authentication, supply chain solutions, content management, sale of digital certificates; and sale, implementation, and maintenance of industry specific applications; supply chain software, and eLearning software development services; and operates web portals. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was incorporated in 1995 and is headquartered in Chennai, India.

How the Company Makes Money

Sify Technologies generates revenue through multiple streams, primarily from IT services, network services, and data center services. The IT services segment includes application development, cloud services, and managed services, which cater to the growing digital transformation needs of businesses. The network services division contributes significantly to revenues through offerings such as leased lines, internet connectivity, and MPLS services. Data center services, which encompass colocation, disaster recovery, and managed hosting, also form a crucial part of SIFY's revenue model. Additionally, SIFY has established strategic partnerships with global technology firms, enhancing its service capabilities and expanding its customer base. The company's focus on innovative solutions and customer-centric offerings continues to drive its financial growth.

Sify Technologies Financial Statement Overview

Summary

Revenue growth and asset expansion are positive, but profitability has weakened materially with a net loss in 2025. Leverage has increased (higher debt-to-equity), and free cash flow is negative due to heavy capex despite positive operating cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.45B	39.89B	35.63B	33.40B	27.03B	24.32B
Gross Profit	14.17B	14.97B	13.26B	12.02B	10.98B	9.62B
EBITDA	8.20B	8.09B	7.33B	6.67B	6.18B	5.22B
Net Income	-1.50B	-784.96M	168.94M	674.52M	1.26B	1.53B
Balance Sheet
Total Assets	83.14B	83.18B	70.98B	57.40B	47.07B	36.66B
Cash, Cash Equivalents and Short-Term Investments	2.57B	6.30B	5.39B	3.65B	3.78B	5.10B
Total Debt	38.46B	39.51B	33.54B	22.93B	17.46B	11.74B
Total Liabilities	63.62B	63.05B	46.95B	40.26B	32.59B	23.50B
Stockholders Equity	19.52B	20.13B	24.03B	17.15B	14.48B	13.17B
Cash Flow
Free Cash Flow	0.00	-3.67B	-7.39B	-4.87B	-5.13B	3.21B
Operating Cash Flow	0.00	8.65B	4.98B	8.34B	2.24B	6.97B
Investing Cash Flow	0.00	-12.32B	-12.26B	-13.59B	-7.59B	-3.62B
Financing Cash Flow	0.00	4.73B	7.44B	4.94B	4.17B	618.37M

Sify Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIFY, the sentiment is Positive. The current price of 10.89 is below the 20-day moving average (MA) of 14.51, below the 50-day MA of 12.73, and above the 200-day MA of 9.34, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 62.26 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIFY.

Sify Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	70 Outperform	$1.23B	15.26	27.94%	0.47%	2.52%	10.02%
SIFY	62 Neutral	$1.12B	―	―	―	5.81%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	56 Neutral	$595.65M	-82.97	-6.63%	―	102.05%	-110.74%
LILA	53 Neutral	$1.57B	-2.12	-79.15%	―	-0.83%	-25.72%
SHEN	50 Neutral	$657.13M	-16.20	-4.41%	0.97%	11.59%	-106.83%
CABO	50 Neutral	$494.20M	-1.11	-27.38%	10.11%	-4.94%	-335.70%

Sify Technologies Corporate Events

Sify Technologies Posts Q3 FY 2025-26 Revenue Growth but Remains in Loss Amid Heavy Infrastructure Investment

On January 12, 2026, Sify Technologies reported its consolidated IFRS results for the quarter ended December 31, 2025, posting revenues of INR 11,596 million, up 11% year-on-year, and EBITDA of INR 2,470 million, up 29%, while still recording a net loss of INR 329 million due largely to high interest expenses and ongoing depreciation from heavy infrastructure investments. The company continued to deploy significant capex of INR 3,452 million in the quarter and ended with a cash balance of INR 3,627 million, underscoring its strategy of aggressively expanding hyperscale data centers, networks and AI-ready platforms despite near-term losses. Operationally, revenue contributions were diversified across network services (37%), data center services (40%) and digital services (23%), with notable new contracts from India’s largest stock exchange, major financial institutions, government digital payment entities and large private healthcare and insurance players, highlighting Sify’s strengthening position at the core of India’s digital and cloud ecosystem even as profitability remains under pressure.

The most recent analyst rating on (SIFY) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Sify Technologies stock, see the SIFY Stock Forecast page.

Sify Technologies Releases Half-Year Financial Results for 2025

Sify Technologies Limited has released its unaudited financial results for the half-year ended September 30, 2025. The report highlights the company’s financial position, profit or loss, and cash flows, prepared in accordance with the International Financial Reporting Standards. The financial statements are presented in Indian rupees with translations into U.S. dollars for convenience. The company emphasizes the use of EBITDA as a non-IFRS measure to assess financial performance. The report also contains forward-looking statements regarding future revenue, market risks, and growth management, cautioning stakeholders about potential risks and uncertainties.

The most recent analyst rating on (SIFY) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Sify Technologies stock, see the SIFY Stock Forecast page.

Sify Technologies Reports Q2 2025-26 Financial Results Amid Strategic Expansions

On October 27, 2025, Sify Technologies Limited reported its financial results for the quarter ending September 30, 2025. The company achieved a revenue of INR 10,533 million, marking a 3% increase from the previous year, and an EBITDA of INR 2,361 million, a 20% rise. Despite these gains, Sify reported a loss of INR 275 million for the period. The company is investing in data center capacity and expanding its network services, aligning with India’s growing digital infrastructure needs. Sify’s strategic focus on data centers, network expansion, and AI-ready platforms is aimed at maintaining its competitive edge in the evolving technology landscape.

The most recent analyst rating on (SIFY) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Sify Technologies stock, see the SIFY Stock Forecast page.