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Sify Technologies Limited (SIFY)
:SIFY

Sify Technologies (SIFY) AI Stock Analysis

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Sify Technologies

(NASDAQ:SIFY)

Rating:56Neutral
Price Target:
$5.00
▲(4.38%Upside)
Sify Technologies' stock score reflects robust revenue growth and strategic expansion efforts, tempered by financial challenges such as increased leverage and net losses. Technical indicators show a positive short-term trend, but the absence of valuation metrics limits a comprehensive assessment.

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

Sify Technologies Business Overview & Revenue Model

Company DescriptionSify 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 MoneySify Technologies generates revenue through its diverse portfolio of ICT services. The company's key revenue streams include network services, where it provides integrated connectivity solutions and managed network services; data center services, offering colocation, hosting, and disaster recovery solutions; and cloud and managed services, which encompass cloud migration, management, and infrastructure services. Additionally, Sify earns from digital services that involve application development, security services, and system integration. Strategic partnerships with technology giants and collaborations with industry leaders further bolster its earnings, enabling Sify to offer cutting-edge solutions and expand its market reach.

Sify Technologies Earnings Call Summary

Earnings Call Date:Apr 18, 2025
(Q4-2025)
|
% Change Since: 50.63%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted strong revenue and EBITDA growth, as well as significant expansion in data center capacities. However, these positive aspects were offset by substantial capital expenditures and losses before and after tax, indicating financial challenges.
Q4-2025 Updates
Positive Updates
Revenue Growth
The revenue for the year was INR 39,886 million, marking an increase of 12% over last year.
EBITDA Increase
EBITDA for the year was INR 7,562 million, which is a 12% increase over the previous year.
Expansion of Fiber Nodes
Sify provides services via 1,137 fiber nodes across the country, reflecting a 10% increase over the previous year.
Data Center Capacity Expansion
Two new data center facilities went live, each with a design capacity of 26 megawatts, and additional capacity is under construction in Mumbai.
Negative Updates
Loss Before and After Tax
Loss before tax was INR 286 million and loss after tax was INR 785 million.
Substantial Capital Expenditure
Capital expenditure for the year was INR 12,745 million, which is significant and expected to be marginally higher in fiscal '26.
Increased Operational Expenses
Substantial expenses were incurred for new capacities leased for future business requirements, impacting the financials.
Company Guidance
In the call discussing Sify Technologies' financial results for the fiscal year 2024-2025, several key metrics and guidance were provided. The revenue for the year was reported at INR 39,886 million, marking a 12% increase over the previous year. EBITDA also rose by 12%, reaching INR 7,562 million. Despite these increases, the company reported a loss before tax of INR 286 million and a loss after tax of INR 785 million. The capital expenditure for the year was substantial at INR 12,745 million, indicating significant investment in infrastructure development. The revenue was divided among three main service areas: data center services (38%), network services (41%), and digital services (21%). The call highlighted that Sify is strategically focused on enhancing operational agility and capturing emerging opportunities, with a reported cash balance of INR 6,836 million at the end of the year. The company also expanded its network infrastructure to 1,137 fiber nodes and deployed 1,870 SDWAN service points, reflecting a 10% increase in fiber nodes over the previous year.

Sify Technologies Financial Statement Overview

Summary
Sify Technologies shows strong revenue growth and asset expansion, aligning with industry trends. However, profitability is challenged by increasing leverage and a net loss in 2025, impacting 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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue36.51B39.89B35.63B33.40B27.03B24.32B
Gross Profit13.54B14.97B13.26B12.03B10.98B9.62B
EBITDA6.00B8.09B5.75B6.50B6.18B5.22B
Net Income-66.00M-784.96M48.94M674.52M1.26B1.53B
Balance Sheet
Total Assets0.0083.18B70.98B57.40B47.07B36.66B
Cash, Cash Equivalents and Short-Term Investments5.39B6.30B5.39B3.65B3.78B5.10B
Total Debt0.0039.51B27.59B22.93B17.46B11.74B
Total Liabilities-24.03B63.05B46.95B40.26B32.59B23.50B
Stockholders Equity24.03B20.13B24.03B17.15B14.48B13.17B
Cash Flow
Free Cash Flow57.76M-3.67B-7.39B-4.87B-5.13B3.21B
Operating Cash Flow57.76M8.65B4.98B8.34B2.24B6.97B
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
Positive
Last Price4.79
Price Trends
50DMA
4.62
Positive
100DMA
4.53
Positive
200DMA
3.79
Positive
Market Momentum
MACD
-0.02
Negative
RSI
56.23
Neutral
STOCH
73.33
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 4.79 is above the 20-day moving average (MA) of 4.58, above the 50-day MA of 4.62, and above the 200-day MA of 3.79, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$217.68M25.729.35%18.23%81.31%
66
Neutral
£1.90B10.31-3.58%3.55%3.34%-85.67%
66
Neutral
$359.08M-5.81%7.01%-84.41%
65
Neutral
$261.42M-5.79%6.40%-5.46%-76.33%
64
Neutral
$784.46M-4.30%0.70%21.68%-1010.29%
56
Neutral
$346.56M-5.17%9.62%
52
Neutral
$466.84M-7.16%43.90%-24.87%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIFY
Sify Technologies
4.79
2.20
84.94%
ATNI
ATN International
17.18
-2.90
-14.44%
RDCM
Radcom
13.58
4.21
44.93%
SHEN
Shenandoah Telecommunications Co
14.30
-2.14
-13.02%
ATEX
Anterix
25.08
-13.47
-34.94%
OOMA
Ooma
13.01
4.09
45.85%
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: Jun 27, 2025