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Sify Technologies Limited (SIFY)
NASDAQ:SIFY
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Sify Technologies (SIFY) AI Stock Analysis

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SIFY

Sify Technologies

(NASDAQ:SIFY)

Rating:65Neutral
Price Target:
$6.00
▲(7.14%Upside)
The overall stock score is primarily driven by strong technical indicators, indicating bullish momentum. Financial performance shows solid revenue growth but is hindered by profitability challenges. Valuation is supported by technical strength, though traditional metrics are absent.

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:Jul 18, 2025
(Q1-2026)
|
% Change Since: -3.28%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of robust revenue and EBITDA growth, alongside strategic expansions in the data center sector and innovative service offerings in AI hosting. However, profitability was impacted by losses before and after tax, and challenges in the digital IT services segment remain due to strategic shifts and investments. The sentiment of the call leans toward a positive outlook, driven by strong growth metrics and future-oriented initiatives, despite current financial challenges.
Q1-2026 Updates
Positive Updates
Revenue Growth
Revenue for Q1 FY2026 was INR 10,723 million, an increase of 14% over the same quarter last year.
EBITDA Increase
EBITDA for Q1 FY2026 was INR 2,111 million, an increase of 18% over the same quarter last year.
Data Center Expansion
Commissioned 8.6 megawatts of additional data center capacity, bringing the total operational capacity to 138 megawatts.
Network Services Growth
Network services saw a 14% increase in services provided via fiber nodes compared to the previous quarter.
Plans for Future Data Centers
Two new data centers in Mumbai with a design capacity of 52 megawatts each and another greenfield project are under construction.
Innovative AI Hosting Model
Introduction of a pay-per-use colocation model for AI workloads, certified by NVIDIA for liquid cooling.
Negative Updates
Loss Before and After Tax
Loss before tax was INR 322 million, and loss after tax was INR 388 million after considering tax on profits from the data center subsidiary.
Digital IT Services Challenges
The digital IT services segment experienced flat top-line growth and increased operational losses, attributed to ongoing investments in capabilities and a shift towards annuity revenues.
Manpower Expense Impact
Increased manpower expenses contributed to the financial results, impacting profitability in the short term.
Company Guidance
During the call, Sify Technologies Limited outlined its financial performance for the first quarter of fiscal year 2026. The revenue for the quarter stood at INR 10,723 million, marking a 14% increase compared to the same quarter last year. EBITDA was reported at INR 2,111 million, reflecting an 18% growth year-over-year. The company, however, faced a loss before tax of INR 322 million and a loss after tax of INR 388 million, taking into account the tax on profits from its data center subsidiary. Capital expenditure for the quarter amounted to INR 2,874 million. The revenue distribution among the company's business segments was detailed with network services contributing 41%, data center colocation services 37%, and digital IT services 22%. Additionally, the company expanded its data center capacity by 8.6 megawatts during the quarter, bringing the total operational capacity to 138 megawatts. Sify managed approximately 9,473 contracted SD-WAN service points across the country and saw a 14% increase in fiber nodes quarter-over-quarter as of December 2024.

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 Price5.60
Price Trends
50DMA
4.87
Positive
100DMA
4.64
Positive
200DMA
4.01
Positive
Market Momentum
MACD
0.30
Negative
RSI
63.82
Neutral
STOCH
85.59
Negative
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 5.6 is above the 20-day moving average (MA) of 5.07, above the 50-day MA of 4.87, and above the 200-day MA of 4.01, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$225.05M26.609.35%18.23%81.31%
65
Neutral
$405.16M-5.17%10.20%
65
Neutral
$332.30M-5.81%7.01%-84.41%
64
Neutral
$273.14M-5.79%5.54%-5.46%-76.33%
62
Neutral
$844.80M-4.30%0.65%21.68%-1010.29%
55
Neutral
HK$69.25B-2.01-3.62%5.51%-4.24%-17.51%
48
Neutral
$401.40M-7.16%43.90%-24.87%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIFY
Sify Technologies
5.55
2.96
114.29%
ATNI
ATN International
17.82
-8.39
-32.01%
RDCM
Radcom
14.50
4.30
42.16%
SHEN
Shenandoah Telecommunications Co
15.17
-5.46
-26.47%
ATEX
Anterix
21.20
-19.07
-47.36%
OOMA
Ooma
12.04
1.62
15.55%
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: Jul 19, 2025