Good morning, everyone, and welcome to the Sify Technologies financial results for the third quarter, FY 2025 to 2026. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions following the presentation. If anyone should require operator assistance during this conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Praveen Krishna, Head of Investor Relations, Sify Technologies. Praveen, the floor is yours. Thank you, Jenny. I'd like to extend a warm welcome to all our participants on behalf of Sify Technologies Limited. I'm joined on the call today by Mr. Raju Vegesna, Chairman, and Mr. M P Vijay Kumar, Executive Director and Group CFO. Following our comments on the results, there'll be an opportunity for questions. If you do not have a copy of our press release, please call Luri Group at 1-646-824-2856, and we'll have one sent to you. Alternatively, you may obtain a copy of the release at the Investor Information section on the company's corporate website at www.sifytechnologies.com/investors. A replay of today's call may be accessed by dialing in on the numbers provided in the press release or by accessing the webcast in the Investor Information section of the corporate website. Some of the financial measures referred to during this call and in the earnings release may include non-GAAP measures. Sify's results for the year are according to the International Financial Reporting Standards, or IFRS, and will differ somewhat from the GAAP announcement made in previous years. A presentation of the most directly comparable financial measures calculated and presented in accordance with the GAAP, and a reconciliation of such non-GAAP measures and of the differences between such non-GAAP measures and the most comparable financial measures calculated, will be made available on Sify's website. Before we continue, I'd like to point out that certain statements contained in the earnings release and on this call are forward-looking statements rather than historical facts, and are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements, but are not intended to represent a complete list of all risks and uncertainties inherent to the company's business. I would now like to introduce Mr. Raju Vegesna, Chairman of Sify Technologies. Chairman. Thank you, Praveen. Good morning, everyone, and thank you for joining us on the call. India's growth story has moved decisively from promising to performance. Strong economic fundamentals, policy continuity, and accelerating digital adoption are positioning India as a central pillar in the global technology ecosystem. India's IT is entering into a new phase, one defined not only by scale, but by leadership in digital infrastructure, cloud, and AI-led innovations. As enterprises and governments intensify their focus on AI, cloud, and data-driven platforms, demand for the secure and high-performance and sovereign digital infrastructure is rising rapidly. At Sify, our strategy is aligned with this inflection point through sustained investments in hyperscaler data centers, resilient networks, and AI-driven platforms, positioning us to enable the next decade of enterprise transformation in India. Let me now bring in our Executive Director and Group CFO, Mr. M.P. Vijay Kumar to explain both the business and financial highlights. Vijay Kumar. Yeah, thank you, Chairman. We continue to exercise fiscal discipline while making measured investments to strengthen our long-term capabilities. Our capital allocation across data centers, networks, and people for digital platforms remains guided by a disciplined approach to risk and future readiness, with a focus on long-term value creation. Let me now expand on the business highlights for the quarter. The revenue split between the businesses for the quarter was network services 37%, data center colocation services 40%, and digital services 23%. In this quarter, data center colocation capacity of 9.1 megawatts was sold. As of December 31, 2025, Sify Network Services provides services via 1,214 fiber nodes, a 9% increase over the same quarter last year, and as of the same date, we have so far deployed 9,695 SD-WAN service points across the country. A detailed list of our key wins is recorded in our press release, now live on our website. Let me briefly sum up the financial performance for Q3 of financial year 2025-2026. Revenue was INR 11,596 million, an increase of 11% over the same quarter last year. EBITDA was INR 2,470 million, an increase of 29% over the same quarter last year. Loss before tax was INR 2,570 million, and after tax, INR 3,290 million. Capital expenditure during the quarter was INR 3,452 million, and cash balance at the end of the quarter, 31st December 2025, was INR 3,627 million. I will now hand over to our Chairman for his closing remarks. Thank you, Vijay Kumar. Chairman. Sify is committed to driving technology-led growth by enabling enterprises to modernize, expand, and capture new opportunities. Our resilient infrastructure and comprehensive portfolio of services provide a strong foundation to deliver sustainable value and long-term returns. As we execute on this roadmap, I want to thank you for your continued confidence and support in our vision for the future. Thank you for joining us on this call. I will now hand over to operators for any questions. Thank you very much. At this time, we will be conducting our question-and-answer session. If you would like to ask a question, please press star one on your phone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For any participants using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please wait a moment while we poll for questions. Thank you. Our first question is coming from Greg Burns of Sidoti & Company. Greg, your line is live. Good morning. I just wanted to start off just asking about maybe an update on the timing for the IPO of Infinit Spaces. Are there any milestones that are upcoming, or how should we think about the maybe major milestones that still need to be completed and the expected timing for that IPO? Yeah, Greg, good morning. We filed the draft prospectus middle of October 2025, and usually in a period of three to four months, we get the securities regulators' approval. We are expecting the approval of the draft prospectus this month, and we will be guided by the bankers on the exact timing of opening the issue and getting listed. Once we get the SEBI's approval this month, there are additional processes in terms of updating the draft prospectus with the financials as of 31st December, and this is the bankers' guidance. We will go to the market for listing. Okay, thanks. And then I guess you mentioned that you had sold an additional, I think, nine megawatts of capacity this past quarter. Could you update us on maybe what your total design capacity currently is and how much of that in total has been sold? Yeah. The total design capacity is 188 megawatts, out of which the capacity which is ready for service is 130 megawatts, and out of 130, the total sold capacity is about 127 megawatts. Okay, great. Then, I don't know, maybe over the next six to 12 months, could you give us maybe an update on the roadmap for your new data center construction, maybe in terms of either DCs or capacity that you expect to bring online? Yeah. There are two facilities in our Rabale data center campus, which will go live in this calendar year, for which we have contracted with the customers, and there are other two greenfield projects which are under construction, one of which should get delivered middle of this calendar year, and the other will get delivered middle of the next calendar year. The total capacity of those four facilities? Okay. The aggregate capacity of all the four facilities at present is about 125 MW, but this is customers' actual deployment. The capacity could be a little higher because we are seeing customers bringing in AI workloads into the country. It is just bigger, so the densities are expected to increase. Okay. All right, thanks. And then lastly, the digital service is still operating at a loss. How should we think about that part of the business longer term? At what point do you expect that to maybe either be at break-even or profitable? When are you going to start to get some operating leverage on the investments you're making there? Yeah. I don't want to sound forward, but let me give a little guidance to the extent I can. The next fiscal year, 2026-2027, latter part of the year, we should hopefully become break-even. And depending on how the services market scales up for the new offerings which we are investing, we will see profitability thereafter. Okay. All right, perfect. Thank you. Thank you. Thank you very much. Our next question is coming from Ramesh Vijay of Stockify. Ramesh, your line is live. So you mentioned that 12.16 megawatt capacity sold since June 2025. How much of this is already revenue-generating? Out of that, the revenue-generating will be about 4 megawatts because a substantial part of the orders have come in December, which will generate revenue in the coming quarter. What is the average contract tenure and return on capital employed per megawatt? For hyperscalers, the average contract. Hello? Hello? Jenny? Yes. Jenny, we are experiencing difficulties on the line. Yeah, Ramesh, I'm going to just boost your line. Are you quite far away from your headset, handset? No. We are able to speak. I hope you guys are able to hear us. That's better. Jenny, just one more confirmation. I think we lost Vijay on this call. Oh, okay. Bear with me one second. Vijay's line is still connected. Vijay, can you hear us? Okay. The line is still connected. Just bear with me a second. I'll try and pull the line. Just one second. Okay. I'm trying to get Vijay back in the call, so just bear with me while I try and do that. Okay? One second. Yes, please. He got dropped, so he's asking to connect again. Okay. For the moment, we have lost Vijay, and I'm not getting him back in at the moment. I will keep trying. In the meantime, would you like me to carry on with any questions? We still have Ramesh on the line. I would give it another. Could you hold for a minute, please? Could you hold for a minute? Yes, certainly. Yes. All right, ladies and gentlemen, we'll just wait a moment to see if we can get the Chairman back on the line. I have Vijay on my phone, and he's listening in on this call, so he can take your question. Okay. So, Ramesh, if you would like to ask your question again. Thank you. Yeah. No, the question was regarding the tenure of the contractors, of course. Yeah. The hyperscale contracts are all for a tenure of seven years and with renewal for two further terms of a similar period. And for enterprise contracts, it is five years, and which usually tend to get renewed for similar periods. Okay. Return on capital employed each megawatt per megawatt? Return on capital employed, we measure it essentially for the stabilized facilities, which is facilities when they get fully populated. And for the fully populated facilities, the return on capital employed is in high teens. Okay. So this IPO which you are coming out with, Sify Infinit, is this proceeds going to be used for debt reduction of parent level, or is it going to be used for fresh network expansion? The IPO, primary portion of it is going to go for data center expansion. A portion of the funds will go towards retiring the existing loans, and we will replace those loans with lower-cost and longer-term infrastructure debt subsequently. So how is Sify Infinit structurally separated, like board, debt, cash flow, everything? How exactly is it separated? Yeah. Sify Infinit Spaces is a 100% subsidiary of Sify Technologies Limited, separate legal entity, and its separate financial statements are available on our website. They are also available in the IPO documents which you have presented. It's also available in the MCA portal. The separate financial statements are available, and since our debt is listed in the Bombay Stock Exchange, the quarterly results are also updated in the Bombay Stock Exchange portal. Okay. Is the existing Sify shareholders' ADR going to get any kind of shareholder quota in the new IPO? We have been advised by the bankers that the existing ADR shareholders are holders of American securities, and the legal framework does not allow any priority to be given. However, the U.S. shareholders, if you are in the U.S. and you have a non-resident account in India, you could participate through the NRE account which you have here. Okay. Fine. I'll come back. Thank you. Thank you very much. Just a reminder there, if anyone has any remaining questions, you can still join the queue by pressing star one on your phone keypad. Our next question is coming from Prateek Singh of IIFL Capital. Prateek, your line is live. Okay. Hi, and thanks for the opportunity. The first question is on depreciation. So basically, I understand that the management estimates useful life for power equipment to be around eight years. Does it mean that after eight years, we'll need to replace power equipment? I don't think so, right? It's just for accounting. The power equipment would be lasting for 15, 20 years. Is that understanding correct? Exactly. You're right, Prateek. In fact, we have been in business for about 25 years, and except for certain items like the UPS and the batteries, the rest of them have a life north of 15 years. One of the reasons the company took a depreciation policy of an average of eight to 10 years is to coincide with the pricing model which the company adopts, so our pricing model assumes eight to 10 years capital recovery, and hence the depreciation is synced to that. Thank you. The next question is on margins. The data center business, which is kind of a steady state and growing very well for us. Margins, while I understand that they are stable, we saw a small dip in margins this quarter. So usually, when we have to forecast numbers, how should we look at it? Is it like hyperscalers, are they driving pricing down, or the situation is quite tight in India, and that's not the case? It might be due to power costs going up. How should we look at margins and pricing environment going ahead? Okay. The EBITDA margins are consistent between 44%-45%. 100 basis points difference at times arises between quarters, depending on the customers ramping up their IT power consumption. So whenever, for example, Rabale Tower 5 went live in the last nine months, and those equipments have come in, which have contributed to capacity revenue, but the power revenues start scaling up over a period of time. And similarly, whenever new large capacities come live, there is that period of ramping up for about six to nine months where you have some operating expenses which later give us the operating leverage to reduce the same. So it generally fluctuates between 100-200 basis points. Otherwise, it's close to 45%. Understood. Sir, so like you said, like sir said earlier, that design capacity is 188, installed is around 130, operational is 127. Did I hear it correctly? Installed 130, right? Or was it 150? 130. 130. Okay. So these are the same numbers as of June as per the DRHP. So does it mean that the CapEx that we are doing right now is going into capital work in progress, and we can see a step jump when a new facility is commissioned? Correct. Correct. You're right. The design capacity of 188 between the DRHP of June and now is the same. A substantial amount of capacity is going to get added in this calendar year where we have Rabale Tower 6 and 7, which will go live, and Rabale 11 also, which is going to go live. So you'll have a substantial capacity getting added. What kind of time difference do we see? I understand that design capacity is a bare shell, right, without UPS, gensets, and all those things, and installed capacity has all those things. What kind of time difference do we see between 130 going to 188? Is it more like six, seven months, or is it more like 12 months? Basically, how long does it take for installed capacity to rise to the level of design capacity, in short? Yeah. Yeah. So the markets are divided as Mumbai and other cities. In Mumbai, the recent experience is any capacity you add, the design capacity getting fully populated is approximately about 15 months, 15 months. Whereas in other cities where you build on a tower concept, where you build the core and shell to meet the future demand, because when customers come in, they see whether the capacity is scalable. That becomes one of the important requirements. So in other markets, the experience is it takes about three to four years to get fully populated. But at times, if a hyperscaler customer comes in, then it gets populated earlier. The second question you had on pricing, we are not seeing any pricing challenges, whether it is hyperscaler customers or the enterprise customers. The pricing, the return on capital is fairly consistent. The criteria for customers to look at it is availability of capacity on time, and the service providers' quality of product and operations and maintenance is the key criteria for the customers, and it continues to be so now. Understood. And so just a bit. Sorry, Prateek, I lost you. Sorry. Prateek, your line cut out for a second. Would you mind re-asking the question, please? Sure. So is my line clear now? Yes. Better. Better. Yeah. So on the related party disclosures in the DRHP, when we talk about expense transfer and revenue transfer with Sify Technologies, I wanted to get more sense as to what these are and how should we look at it? Yeah. Yeah, so the related party transactions are broadly two things. The revenue transfer and the expense transfer which you see there is actually in the context of some of the contracts which were signed by the parent company before the data center business was carved out. So those customer contracts have remained with the parent company because they're largely with the public sector companies. So those contracts, whatever revenue comes, we pass it on as it is to the data center entity as per the business transfer agreement. So parent company does not have any margin. It's just a simple revenue and expense transfer, which is that. That's point number one. Second is there are three data center assets which are owned by the parent company. Those assets have been given on lease to the subsidiary because when we did the business transfer in 2020, it was tax-efficient to retain the asset in the parent company and give it on a long-term lease to the subsidiary. The third point is, as far as the go-to-market of the company is concerned, the go-to-market we have for hyperscale business, a dedicated go-to-market team within the data center entity. But for the domestic enterprise business, we leverage on the go-to-market capabilities which are there in the parent company, where we have about 5,000 enterprise customers. So that go-to-market cost and the marketing cost are apportioned on an actual cost basis to the data center entity. Understood, and just one last clarification. When sir said that the capacity sold in December quarter will generate revenue in the upcoming quarter, by upcoming quarter, do we mean March or June? March. March. But what you have to know also, Prateek, is. Thanks. Yeah. Yeah. A few more questions. We can interact anytime at your convenience. Please feel free to reach out to us. Sure. Thank you very much. Our next question is coming from Saurabh Arya of Oaklane Capital. Saurabh, your line is live. Yeah. Hi. Am I audible? Yes. Yes. You're quiet. Yeah. So my first question is actually on the network business. So why this business is flat in this quarter? Yeah. As far as the network business is concerned, during this quarter, we had some bit of price corrections for our existing customers. Second is there is also a small shift of customers moving from MPLS to internet. And when the customers move from MPLS to internet because of the new technologies like SD-WAN and SASE, the price realization comes down. But at the same time, we manage our costs also to protect our margin. So volume-wise, we would have grown. Volume-wise, we would have grown, but the revenue numbers would look a little flattish. So does it mean this exercise will continue? And second, then how should one look at the growth of this business? Because I was under the impression ultimately it should grow in line with the data center business. Correct. That's actually what will happen. The network business will grow similar to the data center business, but probably not at the same pace because data center growth momentum is significantly higher. But network will also grow alongside the data center business. Okay, and second was there is continuous new growth. Continuous new. By Vizag and this Google partnership on the networking side. Can you explain that? What exactly is happening and what kind of CapEx Sify would be doing? Because these are very large numbers which keep coming. Yeah. Yeah. So as far as Sify network business is concerned, you might be aware. We are a carrier-neutral cable landing station operator in the country. We have one operating cable landing station in Mumbai for over a decade where there are three cable systems which are landing. And those cable landing cable systems, we take them into the city to the various data centers. Now, some of the hyperscalers, as part of their overall strategy, are looking at landing capacities in other cities in India. Vishakhapatnam happens to be one such chosen location. So Google, for their cable landing system, which is coming on this eastern side, has chosen Sify as the partner for setting up the cable landing station where their cable will come and land. This cable will land in a data center which we are setting up in Vishakhapatnam, which we call an edge data center, where we'll have some anchor customers as well. This cable will land there. This cable from the data center, then the cable landing station investment is not a material investment. It's a very strategic investment, though. The material investment will be carrying the capacity from the cable landing station to Google's own data center, which they are putting up in Vishakhapatnam, which is not too much of a distance. That will be a capital investment to be done. At this point in time, we don't have a real estimate of how much is that. But typically, those investments are largely funded by the customer themselves. They would not be balance sheet heavy for Sify Technologies. Okay. And that is fine. So you will continue to benefit from this, but not by putting too much of capital. Correct. Correct. Correct. Correct. It's a very strategic investment. What it actually helps us in the long term is carrying the traffic which comes through the subsea cable systems into the data centers length and breadth of the country. So that's the kind of strategic position it comes. It's similar to an international cable landing station, is similar to an international airport where the traffic comes in, and from there, you carry the traffic through your network into the domestic cities. So that's a simpler way of understanding the cable landing station investment. Okay. Okay. And one last question. So you said that the new data centers, the Rabale, the new towers, they are the capacity some 30s, right, per tower. But you are seeing some AI investment if they can upgrade the capacity. But does it mean the CapEx per megawatt for some of these upgradation is far more than your traditional $5-$6 million per megawatt investment which happens in normal scenario? Yeah. So currently, what is happening, Saurabh, is the four data centers: two of them are 77 MW. The other two are 52 MW. The 77 MW, we are going to host AI infrastructure of the customer. So customer is bringing in substantial amount of AI into that facility. This facility was originally designed for 52, whereas now it's going to be for 77 MW. And the incremental capacity, incremental CapEx cost for the AI is marginal for us. And some of it is getting funded by the customers themselves because they are bringing some proprietary design. Proprietary design. Second, coming to the other 52 MW, which is what I mentioned. Yeah. Yeah. The other 52 MW, which I mentioned, has been originally designed for cloud workloads. But if the customer is coming with AI workloads, we have the opportunity of increasing that 52 MW to a higher capacity. So it depends eventually on what kind of workloads the customer is bringing in. Sure. This is helpful. Just very lastly, so when the normal DC is there, you have got air cooling. So does it mean in all and as you are saying, the CapEx would not increase much and it is done by the customer only. So does it mean none of these new capacities have some liquid cooling, etc., which are very, very expensive? And even if those are there, those would be borne by the customer. Yeah. No, no, no, no, no, no. That's not the right way to understand. All our data centers which have gone live since 2024 are NVIDIA certified and capable of hosting liquid cooling systems. They're all designed for that. And our new facilities, Rabale 6 and 7, which is coming, right from day one, we'll have liquid cooling system. And the commercial engagement with the customers varies from customer to customer, contract to contract. Some contracts, we incur the whole amount and it gets added to the capacity charges. Some customers, the customer invests in that for which we enable the same. So it depends on contract to contract and customer-wise. And whenever you have the liquid cooling system coming in, the incremental cost is approximately 1.3 million per megawatt. $1.3 million per megawatt, right? Correct. Oh, okay. Okay. That is helpful. And that is borne by the customer or by you? No. You charge it. As I told you, this is the customer does it. Sometimes we do it and charge from the customers. Okay. Perfect. And one last, if I can squeeze, is on the data services side. Though you gave the guidance that maybe we will see some flat margin for break-even by next year, next year's second half. But what kind of ramp-up in this business is expected? Because you've been building this business for quite some time now. And what are the green shoots? Yeah. We are expecting a combination of actions to help us get to break-even. One is from our portfolio of services. We will look at focusing on two or three services more for revenue ramp-up. We have the cloud and managed services, the network managed services, and the security managed services. So those are portfolio which we will see some revenue growth to help us get to break-even, where we are actually developing capabilities around AI Ops to bring the differentiation to the customers. That's part one. Some of the portfolios where the scale of opportunity is limited, we might decide to repurpose those resources and get them to businesses which are productive. So we are looking at that carefully, and we will do it in a calibrated manner over the next three to four quarters. We have good quality resources engineers, very young engineers, whom we have trained, good quality people. So we would like to monetize their capabilities by increasing the focus on certain set of services. Okay. Perfect. I think, yeah, this is it from my side. All the best. Thank you very much. Thank you very much. Our next question is coming from Ramesh Vijay of Stockify. Ramesh, your line is now. Hello. Ramesh. Hello, Ramesh. Can you hear us? We're very much here. Ramesh, it's quite hard to hear you. Hello. Ramesh. Are you able to hear me? Yep. We can hear you now. You can ask your question. There is a small thing that we would like to know. How should we go forward with this equity stability, especially such as CapEx and debt going forward, which is continuing to rise? Yeah. The capital requirements is substantially for the data center business, and our initiative now to do an IPO helps us to create the stock as a currency. The initial primary capital which we are raising should take care of the demand growth for the next two to three years, and thereafter, we should be able to do a combination of raises and QIPs to raise capital to meet the incremental capital requirements. In fact, this listing is essentially to fund the growth for the future, given the fact that the business has very good prospects over the next decade. What kind of offloading has been or what kind of new equity is being issued? How much percentage would be impacting for the existing shareholders for the Sify Infinite? The DRHP has been filed and it is in the company's domain. I would encourage, given the fact that these are all subject to capital market regulations, encourage you to read the same. The primary capital which we are raising is INR 2,500 crores. There's an offer for sale from our capital partner, Kotak, where we have ADIA and GIC as LPs, where they'll be liquidating a small portion of their existing holding for INR 1,200 crores. Total issue size is INR 3,700 crores. Fine. Thank you. Thank you very much. Our next question is coming from Prateek Singh of IIFL Capital. Prateek, your line is live. Hi. Just a clarification on an earlier answer. So when we said we have four capacities in line, Rabale, two brownfield, and two greenfield. So these two greenfield are in Rabale as well, or they are in some other city or some other area? Yeah. Yeah. Prateek, all the four are greenfield. All the four are greenfield. Two of them are right adjacent to the existing facilities. The other is right opposite. Other two are right opposite the existing facilities. They all constitute a single campus. All the four are greenfield projects. Okay. In Rabale itself? Prateek? Okay. Welcome. Yeah. In Rabale itself, right? All four are in Rabale? In Rabale. They're all part of the same campus. And all the four are greenfield projects. Understood. Understood. And when we sign these AI contracts, do we expect to maintain similar kind of return on capital employed in AI contracts like cloud, or would they be a bit higher? At present, we are seeing same kind of returns. Early stages, Prateek, let's see how it increases in the future. But at present, it's the same set of returns. Okay. And the Andhra Edge facility will be 50 MW. Is that the right understanding? No, no, no, no, no, no. Andhra Edge facility is on a land parcel of 3.6 acres. The initial design could be for 5 acres, but it's early stages. Once everything is formed up, we will communicate. It's early stages. But typically, all the edge sites, we are designing it for 5 megawatts. Understood. Thanks a lot for patiently answering my questions. All the best. Thank you. Yeah. And just to clarify on that Andhra one, apart from the 3.6, we have a land allotment of 50 acres. Probably your 50 MW context came there. So we have a land allotment of 50 acres, which is there in Vishakhapatnam, which is for the future capacity additions depending on how the demand comes in. Understood. Thank you very much. Well, we appear to have reached the end of our question and answer session. So I will now hand back over to Raju for any closing comments. Thank you for joining us on the call. Have a good day. Thank you. Thank you very much. This does conclude today's call. You may disconnect your phone lines at this time and have a wonderful day. We thank you for your participation. Thank you, Jenny. Thank you.