Sify Technologies Limited (SIFY) Stock: Gains 44% YTD Despite Annual Loss
TLDR
SIFY stock trades at $4.19, gaining 44.92% year-to-date.
FY 2024–25 revenue rose 12% to INR 39.89 billion.
EBITDA increased 12% to INR 7.56 billion.
Net loss stood at INR 785 million.
Customer sign-ups across cloud, security, and network services boosted operational momentum.
Sify Technologies Limited (NASDAQ: SIFY) stock was trading at $4.19 as of the latest session, up 44.92% year-to-date. The India-based tech firm announced consolidated results for fiscal year 2024–25, with revenue reaching INR 39.89 billion, a 12% rise from the previous year. EBITDA also climbed 12% year-over-year to INR 7.56 billion.
Sify Technologies Limited (SIFY)
Despite top-line growth, the company posted a loss after tax of INR 785 million, following a loss before tax of INR 286 million. The earnings date for the next quarter is scheduled between July 17 and July 21, 2025.
Sify invested INR 12.75 billion in capital expenditure during the year, signaling continued infrastructure development. This includes data center expansion, fiber node deployments, and enhancements in network services.
Business Segment Performance
The company’s three main business lines—Data Center Services, Digital Services, and Network Services—contributed 38%, 21%, and 41% to total revenues, respectively.
Its Data Center segment saw client wins from a private sector bank and a leading public sector lender. One of India’s earliest Security SaaS companies also migrated to Sify’s facilities. A major hyperscale campus on India’s western coast attracted interest from institutional clients.
Digital Services saw migration projects for IT companies, NBFCs, media conglomerates, and large lenders moving to cloud-based infrastructures. Clients also engaged in services such as Disaster Recovery-as-a-Service (DRaaS), Infrastructure-as-a-Service (IaaS), and Private Cloud setups. Key sign-ups came from sectors like steel, insurance, automotive, and chemicals.
Network Services posted growth with SD-WAN deployments and full-suite connectivity solutions across thousands of locations. A major insurance entity signed on for SD-WAN across 3,500 locations, while managed services were provided to clients across eastern and western India. Security services were extended to a prominent ITeS firm, and NOC support contracts were secured with co-operative banks.
Financial Metrics and Valuation Concerns
Despite operational progress, Sify faces valuation pressure. Its trailing P/E stands at 258.68, while the forward P/E is a steep 416.67. The company’s PEG ratio is at 21.01, indicating rich valuations relative to its earnings growth expectations.
Market capitalization is $304 million, and enterprise value is over $662 million. Revenue-to-enterprise value is 1.49, and enterprise value to EBITDA is 7.42. Though revenue and EBITDA have improved, profitability remains weak, as shown by a -1.97% profit margin.
Mixed Market Performance
Despite the strong YTD return, long-term investor sentiment appears cautious. The one-year return is -43.25%, while the three-year return stands at -74.62%. Over five years, the stock has declined by 14.88%, underperforming the MSCI World Index, which gained 76.57% in the same period.
Sify’s stock has rebounded in 2025, but the company needs to translate operational growth into sustained profitability. Upcoming earnings and integration of new customer contracts will be key factors to monitor in the second half of the year.
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Filed under: News - @ April 21, 2025 7:27 pm