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46%

of Sify Infinit Spaces' FY25 revenue came from one unnamed client

A primer on another data centre company listing soon, Sify Infinit Spaces

Companies No. 67 14 October 2026 · 3 min read

Sify Infinit Spaces, the data centre arm of Sify Technologies, plans to raise ₹3,700 crore through an IPO: ₹2,500 crore from fresh shares and ₹1,200 crore from 2 Kotak funds selling shares. Its October 2025 draft prospectus reveals how the business makes money and where its risks lie.

A data centre provides space, power, cooling and security for companies' computer servers. Sify Infinit Spaces operates 14 data centres across 6 cities, with 188.04 MW of built capacity. Clients pay for space, network connections and electricity. In FY25, power alone cost ₹559 crore, or 39% of its ₹1,428 crore revenue.

The challenge is that capacity must be built before it earns. Its 2 new data centres cost about ₹29 crore and ₹46 crore per MW, and take 2 to 3 years to fill. By June 2025, clients had taken up 60% of the capacity, leaving around 40% unoccupied.

Once occupied, the business generates strong operating margins. FY25 EBITDA was 44.4% of revenue. But depreciation of ₹327 crore and interest costs of ₹153 crore reduced net profit to ₹126 crore, just 8.85% of revenue. Net debt stood at ₹2,324 crore in March 2025.

The bigger concern is customer concentration. Despite having over 500 clients, one unnamed client paid ₹662 crore in FY25, accounting for 46% of revenue, up from ₹422 crore a year earlier. This client alone contributed 76% of the year's revenue growth. The top 10 clients accounted for 82% of revenue, while large cloud companies, known as hyperscalers, contributed 69%.

68% of revenue comes from contracts lasting at least 7 years, giving the business some revenue visibility. But long contracts do not remove its dependence on a handful of customers. Growth also requires heavy upfront investment. The IPO proceeds include ₹1,325 crore for 2 new data centres adding around 65 MW, and ₹600 crore to repay loans. The key question is whether Sify Infinit Spaces can fill its new capacity and diversify its client base quickly enough to justify the investment.

One client pays 46% of Sify Infinit Spaces' revenue

Sify Infinit Spaces' FY25 revenue, ₹1,428 crore, by client. It has over 500 clients, but the top 10 paid 82%.

₹ CRORE, FY25 REVENUE

  • Client 1
  • Clients 2 to 10
  • All other clients
Bar of Sify Infinit Spaces' FY25 revenue of ₹1,428 crore by client: one unnamed client ₹662 crore, 46.3%; clients 2 to 10 ₹516 crore, 36.1%; all other clients ₹251 crore, 17.6%. It has over 500 clients; large cloud companies paid 69% of revenue.

The prospectus does not name the clients. Large cloud companies (hyperscalers) paid 69% of FY25 revenue in all.

Sify Infinit Spaces, Draft Red Herring Prospectus (SEBI), revenue from top 10 clients · FY25

Of Sify Infinit Spaces' ₹1,428 crore revenue, ₹126 crore was profit

FY25, from revenue to profit after tax, in ₹ crore. Power is the biggest cost; depreciation and interest on the buildings take most of the rest.

Waterfall of Sify Infinit Spaces' FY25 results in ₹ crore: revenue 1,428, less power 559 and other running costs 235, leaves operating profit (EBITDA) of 634; less depreciation 327, interest less other income 127 and tax 54, leaves profit after tax of 126.

Sify Infinit Spaces, Draft Red Herring Prospectus (SEBI), restated profit and loss · FY25

40% of Sify Infinit Spaces' built capacity is not yet sold

Data centre capacity built and sold to clients, in megawatts. Capacity jumped in 2 years; sales lagged, as a new building takes 2 to 3 years to fill.

Bars of Sify Infinit Spaces' data centre capacity built and sold, in megawatts: March 2023 92.63 built, 77.09 sold; March 2024 136.20 and 85.49; March 2025 188.04 and 111.37; June 2025 188.04 and 113.67, so 60% sold and 40% not yet sold.

MEGAWATTS (MW) OF IT POWER

BuiltSold

Sold: capacity contracted or committed to clients. Built: capacity that can be sold. June 2025: 113.67 of 188.04 MW sold, 60%.

Sify Infinit Spaces, Draft Red Herring Prospectus (SEBI), key performance indicators · Mar 2023 to Jun 2025

Sources