SIFY

Welcome to the Sify Technologies financial results for first quarter FY 2026 and 2027. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to your host, Praveen Krishna. You may begin.

Thank you, Holly. I would like to extend a warm welcome to all our participants on behalf of Sify Technologies Limited. I am joined on the call today by my chairman, Mr. Raju Vegesna, and my executive director and group CFO, Mr. MP Vijay Kumar. Following our comments on the results, there will be an opportunity for questions. If you do not have a copy of our press release, please call Lurie Group at 1-646-824-2856 and we will 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 Sify 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 IFRS and will differ somewhat from the GAAP announcements made in previous years. A presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of such non-GAAP measures, and of the differences between such non-GAAP measures and the most comparable financial measures is presented in accordance with GAAP will be made available on Sify's website. Before we continue, I would like to point out that certain statements contained in the earnings release and on this conference 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 protection 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 my chairman, Mr. Raju Vegesna. Chairman?

Thank you, Praveen. Good morning, everyone. Thank you for joining us on the call. India's digital transformation is entering a phase of execution at scale. What was once a digital transformation agenda has now become a business imperative, with organizations investing in technology to improve productivity, resilience, and customer experience. The country continues to benefit from a unique combination of progressive policy initiatives, expanding digital infrastructure, and a deep pool of technology talent. As AI adoption gathers pace, the need for secure, scalable, and interconnected digital infrastructure will become even more critical. This presents a significant opportunity for India to strengthen its position as a global technology and innovation lab. At Sify, we continue to align our investments with these long-term trends. Our integrated portfolio of data centers, network, and digital services enables us to support customers as they modernize their technology environments and prepare for an AI-enabled future.

India is no longer preparing for the digital future, it is actively shaping it. Sify remains committed in building the infrastructure and capabilities that will help power this next chapter of growth. Let me now bring our Executive Director and Group CFO, Mr. M.P. Vijay Kumar, to explain both the business and financial highlights of this quarter. Vijay?

Thank you, Chairman. During the quarter, we continued to strengthen the operational foundation of our businesses through disciplined execution, improved resource utilization, and targeted investments across each of our portfolios. We continue to invest in capacity expansion, network modernization, and technology platforms that position us to address emerging demand from AI, cloud, and data-intensive workloads. At the same time, we remain vigilant in managing costs, optimizing cash flows, and enhancing operational efficiency across the organization. While investment in infrastructure and talent continue to influence depreciation, interest, and people cost, these are aligned with our long-term growth objective and supported by a prudent approach to risk management and financial planning. Our priority remains unchanged, maintaining a strong balance sheet, preserving financial flexibility, and creating enduring value for shareholders through disciplined growth and responsible stewardship of capital. Let me now expand on business highlights for the quarter.

The revenue split between the three businesses for the quarter was network services 39%, data center colocation services 42%, and IT digital services 19%. The data center subsidiary sold five megawatts of capacity in the quarter, and as of 30th June 2026, Sify provides network services via 1,238 fiber nodes across the country, a 7% increase over the same quarter last year. 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 quarter one of financial year 2026-27. Revenue was INR 1,235.2 million, an increase of 15% over the same quarter last year. Adjusted EBITDA was INR 300.5 million, an increase of 42% over the same quarter last year. Profit for the quarter was INR 65 million. Capital expenditure during the quarter was INR 670.8 million.

Cash balance at the end of the quarter was INR 4,597 million. I will now hand over to our Chairman for his closing remarks. Chairman?

Thank you, Vijaykumar. With our integrated portfolio of services, Sify is well-positioned to support enterprises as they build resilient, scalable, and future-ready digital ecosystems. I would like to express my sincere gratitude to our customers, shareholders, partners, and employees, and all other stakeholders for their continued trust, support, and confidence in Sify. Together, we remain committed to contributing to India's digital future and capturing the opportunities that lie ahead. Thank you for joining on this call. I will now hand over to the Operator for questions. Operator?

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Your first question for today is from Greg Burns with Sidoti & Company.

Good morning. Do you have an update on the potential timing for the Sify Infinit Spaces IPO?

Yeah. As far as the IPO timing is concerned, the bankers are actively evaluating the right time where the market appetite will be good and will appreciate the quality of the asset we are. From the company's side, we stay ready for listing once the bankers advise us on going ahead.

Okay. Thank you. You mentioned you sold 5 MW of capacity in the quarter. How much capacity is currently live and operational, and what is your current design capacity of existing data centers?

Yes.

Maybe, can you give us an update on what you expect to go live or how much capacity is currently under construction and, I guess, expected to become operational over the next 12 months? Thank you.

Yeah. The capacity which is designed and ready is 188 MW. The operational live revenue generating capacity is 134 MW, and the capacity which will get delivered in this fiscal will be about 100 MW, and there is another 150 MW of capacity under construction.

Okay. Do you expect the CapEx to remain at the level you had this first quarter for the remainder of the year, or is it going to maybe ramp up from here?

The CapEx is likely to be higher for the remaining part of this year as we get ready to deliver capacity for the customers.

Okay. Can you just maybe give us your thoughts on what are the primary differentiators for Sify? Why is Sify winning in the market? Maybe what are the reasons that you think that Sify differentiates itself and how you're driving success?

No, I think there is some uniqueness in the market presence for over the time of more than 20 years, and existing hyperscalers and the enterprises. That makes us different. Also our presence in all our key markets like Mumbai, Chennai, Noida, Hyderabad, Bangalore, and small portion in Kolkata. That makes us a unique position. Also our having a network around our data centers, connectivity, availability. It's not any one-time kind of thing, because the way the Sify portfolio has all these things, and also we have cable landing stations we are building. As an integrated player, complete, having a data centers network and having a good power availability story. That will help to win such kind of data center deals.

All right, thanks. I know you're in all the major hubs, but what is the opportunity for edge capacity building up data centers in smaller markets? Is there an opportunity there for you and is that currently on your roadmap?

Yeah. We have already opportunity there. We already completed two such data centers, edge Lucknow and Chandigarh, and we are also constructing two more. We are having a plan about building across India in tier 2, tier 3 cities, about 10-12 edge data centers over the next few years. These opportunities, because India not only depending upon the six major metro cities, but these secondary cities also very important. Our presence, we are building strategically two, three edge data center per year. That's what we are looking at.

Okay. All right, thank you very much.

Thank you.

Your next question for today is from Prateek Singh with IIFL Capital.

Hi, Prateek.

Hello. Hi, sir. Thanks for the opportunity. I understand that the sold capacity has now gone to 134. The installed capacity, which was 140 end of FY 2026, what would that number be?

154.

Okay. The design capacity has been at 188 MW for four, five quarters now. I just wanted to understand how does it work. We first focus on completing the installed capacity and then build new capacity? Both of these cannot be done parallelly?

Yeah, I was answering the previous speaker. There is another 100 MW of capacity, which coincidentally will be both design plus installed capacity, which will be delivered this year. Another 150 MW of capacity, which is under construction.

Okay. Can we assume that from a sold capacity of 134 right now, revenue generating capacity next year would be somewhere in the range of 220, 230 for the entire year?

Yeah, it should be north of that.

Understood. My second question is, by when will this 81 MW that we signed last quarter, by when will this start to generate revenue?

It'll start generating from end of quarter two, but it'll reflect significantly in Q3 and Q4.

Understood. About margins, our revenue has risen on a quarter-on-quarter basis, but gross profit has come down. Seems to be driven by the data center business, where revenue has risen 10% on a QOQ basis, but EBITDA is largely flat at around INR 292 million. Margins there have fallen from 45% EBITDA margin to 43%. Is this the new normal? Any one-offs that we saw this quarter in data center business, or how should we look at it?

It is essentially a one-off, which is there in the context of some power tariff revision, which has taken place for one of the facilities.

Okay. It is something which we cannot pass it on to our customers?

We are working with the customer, so in case it happens, it'll reflect later. From a conservative and accounting requirement perspective, we have taken it into cost.

Understood. Just one last clarification. In the last results press release, FY 2026 end equity was around INR 25 billion. Sorry. Yeah, 25,249.94 million INR, which has now changed to INR 189.33. Is it just a rectification or was there any reclassification or any kind of an equity debt conversion?

Can you repeat the equity figure?

Yeah, the equity figure that you give in the end. Equity borrowings, long-term, short-term, cash balance, net debt. The equity number in April, when you reported your March-end results, the March-end number at that point of time was INR 249.94 in the press release, which has now changed to INR 189.33. Wanted to check, is it just a rectification or any kind of a reclassification which has happened?

Let me check on that. To my knowledge, it is a reclassification on the consolidated side. The CCDs which were there, the Compulsory Convertible Debentures, which the parent company was holding in the subsidiary, we took the final accounting position that we will treat it as debt until the listing happens. That's the difference between the two.

Understood. Thanks, I'll join back the queue.

Welcome.

Once again, if you would like to ask a question, please press star one. You have a follow-up question coming from Prateek Singh. Your line is live.

Thanks for the opportunity again. Any plans in the interim, like one of your nearest peers recently raised capital via a private round. Any plans of that if the IPO proceedings get delayed? The IPO is our primary target right now and no plans for any kind of a private round as of now?

No, we have Kotak supporting us on equity for the growth. We are pursuing the IPO path, and any capital requirement in the unlikely situation of IPO getting delayed, Kotak will step in.

Okay. Given your CapEx is quite high, it has shot up almost double the quarterly rate that we used to see earlier because you are on a very strong growth path. As you said, the run rate may be even higher in the next three quarters. There might be a case where we may need funding if the IPO does not happen by then. In that case, you're saying that the Kotak will be happy to support.

Correct. They have offered to stay committed to the growth of the company, so they will step in. Even otherwise, there are several other strategic investors who have shown keen interest. We will evaluate when it is necessary.

Understood. The final question on my side is on Sify Technologies. How should we look at the digital services business? This time also it was a negative EBITDA. While I understand that it may remain negative EBITDA for quite some time, but in terms of revenue also, we saw a decline on a year-over-year basis and also on a QOQ basis. What kind of a growth path do we see for digital, or by when can we expect an EBITDA breakeven there?

Yeah. As far as the revenue growth is concerned, we may not see too much of a growth because we are focusing more on services revenue versus project-based revenue. On the EBITDA side, we are all working for reduction of the losses quarter-over-quarter basis. There is active guidance from the board as well in terms of getting it to a path of profitability soon. A lot of work is happening. I'm not in a position to communicate to you the specific steps, but we continue to stay focused and you can actually see the result of our efforts, in terms of the reduction in loss at EBITDA level, vis-a-vis the previous year first quarter, and also vis-a-vis the sequential previous quarter.

Understood. Similar comments on network services because it has been growing quite well. Can we expect similar kind of a growth over the next few quarters in networks as well?

Yeah. Network revenue, it will grow organically. I think that's a reasonably mature market, that growth should be reasonably good.

Understood. Thanks for your time to answer all my questions and all the best.

No, no, thanks, Prateek, for staying engaged.

As a reminder, if you would like to ask a question, please press star one. We have reached the end of the question and answer session. I will now turn the call over to Raju for closing remarks.

Thank you for your time on this call. Have a good day. Thank you very much.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Good day, ladies and gentlemen, and welcome to the Sify Technologies financial results for full year 2025-2026. At this time, all participants are on a listen-only mode, and the floor will be open for questions and comments following the presentation. If anyone should require operator assistance during the call, please press star zero on your telephone keypad. Please note, this call is being recorded. I will now turn the conference over to your host, Mr. Praveen Krishna, Head of Investor Relations. Praveen, the floor is yours.

Thank you, Ollie. I would like to extend a warm welcome to all our participants on behalf of Sify Technologies Limited. I'm joined on the call today by my Chairman, Mr. Raju Vegesna, and my Executive Director and Group CFO, Mr. M P Vijay Kumar. Following our comments on the release, there'll be an opportunity for questions. If you do not have a copy of our press release, please call Lury Group, our IR agency, 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 sifytechnologies.com/investors. A replay of today's call may be accessed by dialing on the number provided in the press release or by accessing the webcast in the investor information section of the Sify 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 announcements made in previous years. A presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of such non-GAAP measures, and of the differences between such non-GAAP measures and the most comparable financial measures will be made available on Sify's website. Before we continue, I would like to point out that certain statements contained in the earnings release and on this conference 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 protection 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. 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. I would now like to introduce Mr. Raju Vegesna, my Chairman.

Thank you, Praveen. Good morning, everyone. Thank you for joining us on the call. India's digital journey continues to accelerate with renewed clarity and purpose. The convergence of resilient infrastructure, progressive policy framework, and an increasingly innovation-driven enterprise ecosystem is positioning India as a cornerstone of the global digital space. Enterprises today are moving beyond adoption to technology optimization. This evolution is not only strengthening the businesses, but also enabling inclusive growth, expanding opportunities across sectors and communities. The recent Union Budget has recommended a tax holiday for foreign cloud players who utilize Indian data centers to serve global customers. This is expected to add to the tailwinds for a domestic data center growth. With sustained investment in digital infrastructure and such strong regulatory vision, India is reinforcing its credentials as a technology hub.

In this environment, Sify is uniquely positioned to partner with enterprises in their next phase of transformation, delivering integrated solutions that power growth and resilience. I remain confident that our strategic direction and combined with India's enduring strengths will enable us to play a pivotal role in shaping a future-ready digital ecosystem. Let me now bring in our Executive Director and Group CFO, Mr. M P Vijay Kumar, to explain both the business and financial highlights for the year. Vijay Kumar.

Thank you, Chairman. Our businesses continue to deliver focused growth with each unit capitalizing on its distinct market opportunities, attracting strategic investments, and building meaningful partnerships. Our investment philosophy remains consistent and forward-looking, expanding our data center footprint into new and emerging locations for long-term growth, augmenting capacity at existing facilities to address immediate demand, and further strengthening our network and cloud interconnect ecosystem. In parallel, and more importantly, we continue to invest in our people, equipping them with the right skills, tools, and processes to drive innovation, efficiency, and customer success. All these initiatives are being executed with focus on cost competitiveness, cash flow optimization, and fiscal discipline, ensuring that we maintain a strong financial foundation, which supports our growth ambitions.

In accordance with the Amendment Agreement to the Debenture Subscription Agreement with Kotak, the additional coupon payable on Compulsory Convertible Debenture, pursuant to the conversion at equity in February 2026, is recognized as expense in the statement of income. We have received the final observations from SEBI on our draft red herring prospectus for our data center subsidiary, Sify Infinit Spaces Limited, and we will time the issue and listing to a conducive market environment based on bankers' guidance. The cash balance as at end of the year was INR 507.1 million. Let me now expand on the business highlights for the year. The revenue split between the businesses for the year was Network Services 39%, Data Center Services 39.5%, Digital Services 22%. Segment revenue for the year increased 12% in Network Services, 23% in Data Center Services, and decreased marginally 2% in Digital Services.

Segment results for the year have increased by 91% in Network Services, 24% in Data Center Colocation Services, and decreased 67% for Digital Services. The data center subsidiary sold 17 MW of data center capacity in the year. Cumulatively sold capacity stands at 129 MW, and during the quarter, the data center business has contracted an additional 81 MW to be delivered in the coming quarters this financial year, 2026-2027. As of March 26th, Sify provide Network Services via 1,224 fiber nodes, an 8% increase over the same quarter last year. As of March 31, 2026, Sify deployed 10,340 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 the year. Revenue was INR 44,877 million, an increase of 13% over last year.

EBITDA was INR 9,871 million, an increase of 31% over last year. Loss before tax was INR 941 million, and loss after tax was INR 1,366 million. Capital expenditure during the year was INR 13,282 million. I will now hand over to our Chairman for his closing remarks. Chairman?

Thank you, M P Vijay Kumar. Our businesses are mutually reinforcing pillars that together they create a resilient end-to-end digital ecosystem. Strong connectivity enables scalable data infrastructure, while our data centers power secure high-performance platforms for advanced digital solutions. In turn, our digital services unlock value for enterprises and consumers, driving demand across the entire stack. As India accelerates its digital transformation, this integrated approach positions us as a trusted partner at scale. It will also enhance our global credibility, building lasting image equity while strengthening our brand among investors, partners, and stakeholders alike. Thank you for joining us on this call. I will now hand over to the Operator for questions. Operator?

Thank you, sir. Ladies and gentlemen, 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 telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press star two if you wish to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question is coming from Greg Burns with Sidoti & Company. Your line is live.

Good morning. Could you just give us the numbers around what the existing design capacity for your data center business is and how much operational capacity has been sold?

Yeah. The total design capacity of the 14 facilities which are live is 188 MW, out of which 129 MW of capacity is revenue generating at present.

At the end of March.

As of March 26th.

Okay. The 81 MW that you mentioned, that is contracted and in your backlog?

Yeah. That is the backlog. That is for new facilities which are currently under construction, which will go live in the early part of the second quarter.

Okay.

Will be delivered in a phased manner to the customer.

Okay. Perfect. In terms of CapEx, I guess it was INR 13 million this year. What is the guidance or what is your outlook for this year? About a similar level of CapEx, or will it be increasing again this year?

The CapEx will be higher for this year. Given that we are almost doubling our capacity, it will be significantly higher.

Okay. Are you seeing any bottlenecks in terms of either energy availability or inputs like memory that might impact the pace of your rollouts?

At present, we aren't seeing anything here. There is very good support from the Union Government as well as the state governments for the data center infrastructure creation in India. In fact, as the Chairman mentioned in his remarks, the government has also gone forward with committing a 20-year tax holiday for foreign cloud service providers who host their capacity in India for serving the global market. There are a good number of customers who are in active conversation in this to avail this benefit.

Okay, great. Thank you.

Thanks, Greg.

Thank you. Once again, ladies and gentlemen, if you have any questions or comments, please press star one on your telephone keypad. Our next question is coming from Prateek Singh with IIFL Capital. Your line is live.

Hi. Thanks for this opportunity, just taking it ahead from Greg's question. I know that we kind of, in the DRHP, we have given numbers on build capacity, installed, and operational, which was 188, 127, and 111 as of FY 2025 end. I understand that 188 is still 188. Can you just give us a sense as to how the other two numbers have changed, which are installed and operational?

Yeah. The 127 MW which is installed is at 140, and 111 MW is at 129.

Understood. When we say that 81 MW is backlog, and when you said early part of second quarter, by second quarter here, we mean the second financial year quarter, right?

Correct.

Does it mean that by.

Will be delivered in a phased manner.

Okay.

Yeah.

Typically that takes 15 months-18 months for the entire 81 MW to be revenue generating?

No, the current customer schedule is to deliver it within this financial year.

Understood. Another question is, Sir, when you talked about almost doubling of capacity this year, we are talking about doubling of the design capacity, which is 188 MW, going to almost 370 MW-380 MW?

No, I'm talking about doubling of the revenue generating capacity.

Also we will build the design capacity also beyond that, beyond 188 MW.

Understood, sir. Just one last question. Given that there is so much happening, I visited your Rabale site also last month, and I noticed that we are also providing the opportunity of liquid cooling. If one had to get a sense as to what kind of EBITDA per megawatt, how liquid cooling would differ versus the current scenario, at least one can assume on the base basis that our EBITDA per megawatt would largely at least be what we are doing right now without liquid cooling, or do we think that liquid cooling, the EBITDA per megawatt might be a bit lower than what we are doing right now?

No, it could be little higher, but I think that too much of specifics, maybe we can have a conversation separately because customer contracts have some unique elements, the way they are constructed. Typically, considering higher capital deployment, you tend to get a higher return.

Understood. Thanks. I'll join back the queue.

Yeah. Thank you.

Thank you. Our next question is coming from Sri Tulsidutt, who is an investor. Your line is live.

Good morning, sir. This is Srikanth here. I almost join all of your earnings call. I couldn't follow the earlier conversation because I joined late. However, my questions are more specific to the India listing. One, given that it looks like you have all the approvals now, is there any deferment in the IPO because of this whole geopolitical situation across the globe? Two is, has the IPO size been decided? There have been speculations, somebody's quoting one number, somebody else is quoting another number. Those two would be my specific questions.

Okay. Let me take the latter one. The size is already communicated as part of the DRHP. It is INR 2,500 crores of primary and INR 1,200 crores of offer for sale, a partial exit from the existing growth capital partner, Kotak. Total INR 3,700.

Okay.

That is already part of the DRHP filed and approved. Second, as far as the deferment is concerned, there is no deferment per se except that we're waiting for the guidance from the bankers on the timing of the actual issuance and listing. As Management, we have done our road shows, approvals are all in place. We'll get guided with the bankers for the next steps.

At those numbers, what does it translate to the enterprise value of Sify Infinit Spaces?

That would be little difficult to comment here. I think depends on how the book building process goes, and once that is done, as part of the updated DRHP, it would be visible.

Okay. Not a problem.

Yeah. Thanks, Srikanth. Thank you.

Thank you for the opportunity.

Thank you.

Thank you. Just a quick reminder, ladies and gentlemen, it's star one if you have any questions or comments. We have another question from Prateek Singh with IIFL Capital. Your line is live.

Hi. Thanks for the follow-up. Sir, in the last call, if I remember correctly, we had said that we are working on two expansions, which were 77 MW and 52 MW, if I'm not wrong. Can you just guide us as to which are the locations where these two expansions are coming in? Are they both in Rabale or in Noida or other places? We also mentioned that the 77 MW earlier was 52 MW, and because of higher density, it was taken up to 77 MW. Is there any opportunity to take this 52 MW that we're talking about right now to 77 MW or 80 MW also?

Both of them are at Rabale, Prateek. The facility which you have visited, you'd have seen the construction right adjacent to the place where you had all the meetings and the facility visit. That is the 77 MW one, which we'll be delivering to the customer now. Right opposite, you'd have seen the other two towers, which are the 52 MW, and based on the customer engagement, the final usage of that could be higher than 52 MW. At this point in time, it's been designed for that, but it has the capacity to scale up for a higher capacity. Both of them are in Rabale, part of the campus.

This 52 MW also will be commissioned or will be, Sir?

Yeah, 52 MW or a part of it will get commissioned this financial year, and the other part the first quarter of next financial year.

Thank you. Sir, you were saying something?

Yeah, Prateek, I would invite you once again to our campus so that you can have a good sense of the progress which has happened in those two facilities which are getting ready for delivery.

Sure. Thanks a lot, sir.

Thank you. Our next question is coming from Sourabh Arya with Oaklane Capital. Your line is live.

Yeah. Hi, sir. Am I audible?

Yes. Sourabh.

Yeah. Hi.

You're audible.

First question is, can you give some color for all three businesses going into next year? Like obviously, you were expecting till last quarter improvement in Data Services and even improvement in Network business. How should we think about all three businesses from revenue growth and margin perspective?

Yeah. Typically, it's forward-looking statements, Sourabh, and we refrain from that, but I can just give you a 30,000 feet view. Data Center business growth numbers I've already communicated as part of our communication. As against 129 MW of revenue-generating capacity, we have contracted for delivery this year. Already 81 MW of capacity is there. As far as the Network Services business is concerned, it's organically growing at double-digit numbers, of course, low double-digit numbers. That growth should happen along with the digital infrastructure consumption which we are witnessing in the country. On the IT Services business, we continue to stay focused on investing in people to build capabilities for the AI kind of infrastructure services.

A lot of work is happening over the last 18 months-24 months, and as and when the consumption picks up in the domestic market, we'll be ready for delivering those services. That investment will continue to be there for some time, given the fact that we are confident about its long-term prospects.

On the margin side, if you could give, like you were expecting breakeven of data services business, so how should we?

Yeah. I'll not be able to give a specific quarter. There is work happening to get to breakeven. I'll not be able to give a specific quarter when we will achieve that.

Okay. Sure. Over two years, you expect it to turn around? How should we?

Yeah. It should be.

How should we look at the progress of this business then? Would it be quarterly improvements?

No, you should see quarterly improvement going forward. I think two years is a very reasonable period to see that we get to break-even. It's a very reasonable period.

Okay. Whatever is happening in Middle East, so do you think some of the demand will shift to India? Have you started seeing it in interaction with clients that they're inquiring about?

Yeah, we are seeing that happen for our Data Center colocation business, and consequently, to our Network business as well.

Okay. Perfect, sir. Thank you. Thank you very much. All the best.

Thank you.

Thank you. As we have no further questions on the lines at this time, I would like to turn the call back over to management for any closing remarks.

Thank you for everyone, and your time on this call. Have a good day.

Thank you. Ladies and gentlemen, this does conclude today's conference, and you may disconnect your lines at this time. We thank you for your participation.

Thank you, Ollie.