Sify Technologies (SIFY, Financial) has informed Nasdaq that the resignation of Dr. Ajay Kumar from its Board of Directors led to non-compliance with certain Nasdaq listing requirements. Specifically, the company currently does not meet Listing Rule 5605(b)(1), which mandates a board majority of independent directors, and Listing Rule 5605(c)(2), requiring at least three members on the audit committee. Dr. Kumar stepped down to fulfill a constitutional role as directed by the President of India.
On June 5, 2025, Nasdaq's Listing Qualifications Department formally notified Sify Technologies about the compliance issue, specifying a cure period to resolve these deficiencies. The period extends until either the next annual shareholders’ meeting or May 15, 2026, whichever comes first. If the meeting is held before November 11, 2025, compliance must be demonstrated by that date.
Sify Technologies assures that the trading of its ADSs on the Nasdaq Capital Market remains unaffected and is actively seeking a new independent director to return to compliance. The company plans to address the board and audit committee requirements within the stipulated timeframe.
SIFY Key Business Developments
Release Date: April 21, 2025
- Revenue: INR39,886 million, an increase of 12% over last year.
- EBITDA: INR7,562 million, an increase of 12% over last year.
- Loss Before Tax: INR286 million.
- Loss After Tax: INR785 million.
- Capital Expenditure: INR12,745 million.
- Cash Balance: INR6,836 million at the end of the year.
- Data Center Services Revenue Share: 38% of total revenue.
- Network Services Revenue Share: 41% of total revenue.
- Digital Services Revenue Share: 21% of total revenue.
- Fiber Nodes: 1,137 fiber nodes, a 10% increase over last year.
- SD-WAN Service Points: 1,870 contracted service points across the country.
- Income Tax Expense: INR539 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sify Technologies Ltd (SIFY, Financial) reported a 12% increase in revenue for the year, reaching INR39,886 million.
- EBITDA also increased by 12% over the previous year, totaling INR7,562 million.
- The company has expanded its network infrastructure with a 10% increase in fiber nodes across India.
- Two new data center facilities have gone live in Delhi and Chennai, with additional capacity under construction in Mumbai.
- Demand for data center colocation services in India continues to exceed supply, driven by cloud consumption and hyperscaler expansion.
Negative Points
- Sify Technologies Ltd (SIFY) reported a loss before tax of INR286 million and a loss after tax of INR785 million.
- Substantial capital expenditure of INR12,745 million was incurred, impacting financial results.
- There was a substantial increase in expenses due to new capacities leased for future business requirements.
- Operating leverage is still developing, with only marginal improvements in data center service margins expected.
- The demand for data center services is primarily driven by international hyperscalers, with Indian enterprise demand still in early stages.
