Sify Technologies' Q1 2026: Unpacking Contradictions in Data Center Expansion, GPU Demand, and Revenue Growth Strategy

Data center capacity and expansion timeline, GPU as a service offering and market demand, demand for data center services, data center capacity expansion and timeline, digital services revenue growth and strategy are the key contradictions discussed in Sify Technologies Limited's latest 2026Q1 earnings call.



Data Center Capacity Expansion:
- Sify Technologies reported commissioning 8.6 megawatts of additional data center capacity in Q1, increasing the total operational capacity to 138 megawatts.
- The expansion is driven by the increasing demand for high-performance workloads, edge computing, and sovereign requirements in India's growing IT market.

Revenue and EBITDA Growth:
- Sify's revenue for Q1 of financial year 2025-'26 was INR 10,723 million, an increase of 14% over the same quarter last year.
- EBITDA for the quarter was INR 2,111 million, an increase of 18% year-on-year, primarily due to strong performances in the Network Services and data center colocation businesses.

Digital IT Services Strategic Shift:
- The digital IT services segment's contribution to revenue was 22%, indicating a focus shift from project-based revenues to annuity-based revenues.
- The company is investing in building capabilities and people to be relevant for the India IT services market, with expectations of improved operating performance within the next 12 to 18 months.