1. At a Glance
Pace Digitek Ltd (NSE: PACEDIGITK, BSE: 544550) – the fresh new telecom infra hotshot on Dalal Street – is running hotter than a Wi-Fi router during IPL season. The company, incorporated in 2007 and newly listed in October 2025, builds and maintains telecom towers, optical fibre networks, and power systems that keep your mobile data alive when your Jio tower sneezes.
At a market cap of ₹ 4,875 crore and a stock price around ₹ 226, it trades at a P/E of 20.6, right around industry median (20.2). Sounds reasonable—until you see that the company’s Q2 FY26 PAT fell 32.7% QoQ, and you realize it’s juggling projects across 15 states and more acronyms than your last government policy (OFC, BESS, O&M, ICT).
Despite a revenue drop this quarter (₹ 533 crore vs ₹ 846 crore last year), its ROCE of 41.3% and ROE of 31.4% could make most Indian infra firms feel like underperforming relatives at a wedding. But beware—the company has debtors of 276 days, meaning your payment reaches them faster than theirs reach their suppliers.
So, is Pace Digitek the next telecom powerhouse, or just another IPO flexing its BESS muscles? Let’s go layer by layer like a telecom tower audit.
2. Introduction
Pace Digitek Ltd didn’t just pop up on your radar; it landed with an ₹ 819 crore IPO parachute and a promise to electrify India’s telecom and renewable backbone. Born in Bengaluru (because obviously every tech-adjacent dream starts there), this company began life doing telecom infra before evolving into a multi-disciplinary energy and ICT solutions player. Think of it as the overachiever in the infra class—installing towers by day, wiring classrooms by night, and occasionally building a solar farm when bored.
In the age where “5G rollout” is the new “digital India,” Pace Digitek seems perfectly placed to cash in. It’s got three massive manufacturing facilities in Karnataka, covering 2 lakh sq ft of manufacturing area—one each for passive telecom equipment, lithium-ion battery systems, and the blockbuster: a 2.5 GWh BESS (Battery Energy Storage System) facility expandable to 5 GWh. Because if your tower can’t charge, your selfie can’t upload.
But every hero has its Achilles’ heel. Pace’s order book—₹ 7,633 crore strong—leans 97.8% on public sector contracts. Translation: if a government department sneezes, Pace catches a cold. With top 3 customers making up 89% of its revenue, it’s less “diversified portfolio” and more “clingy situationship with the government.”
Still, when you’re bagging ₹ 929.7 crore EPC solar orders and ₹ 1,159 crore SECI BESS projects, nobody can deny the ambition.
3. Business Model – WTF Do They Even Do?
Pace Digitek’s business model can be summarized as “If it’s got a wire, signal, or voltage, we’ll build it.”
Telecom Division (94% of revenue):
Their bread, butter, and the whole buffet. The company designs, installs, and maintains telecom towers and optical fibre networks—doing end-to-end turnkey projects from site design to energization. Within telecom, the split says it all: Projects (92.2%), Products (1.2%), and Services (1%). Essentially, they’re not selling widgets—they’re building empires of towers for BharatNet, BSNL, and other acronym-heavy clients.
Energy Division (5.5%):
This is where the cool kids hang. They’re into solar EPC, lithium-ion battery systems, and large-scale Battery Energy Storage Systems (BESS). The future
plan includes investing ₹ 630 crore in subsidiary Pace Renewable Energies Pvt Ltd to expand BESS projects—like the 200 MW solar EPC order from MSPGCL and a 600 MW/1200 MWh SECI project. In short: from telecom towers to solar towers, it’s all towers.
ICT Division (0.5%):
Here, Pace gets experimental—smart classrooms, surveillance, smart kiosks. Cute, but the money’s clearly in the telecom trenches.
They even make their own supporting gear—SMPS, IPMS, converters, hybrid charge controllers, solar kits, and battery cabinets. Basically, they manufacture the stuff their projects need. It’s vertical integration done desi-style: “Why outsource when we can overwork our own plant?”
4. Financials Overview
Let’s dig into Q2 FY26 numbers and see if this tower still stands tall.
| Metric (₹ Cr) | Q2 FY26 (Sep 2025) | Q2 FY25 (Sep 2024) | Q1 FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 533 | 846 | 367 | -36.9% | +45.2% |
| EBITDA | 94 | 187 | 80 | -49.7% | +17.5% |
| PAT | 68 | 102 | 55 | -33.3% | +23.6% |
| EPS (₹) | 3.59 | 3.03 | 3.21 | +18.5% | +11.8% |
Note: Figures consolidated; EPS annualized = ₹ 14.4 → P/E ≈ 15.7x
The QoQ growth gives hope, but YoY looks like a post-festival crash diet. Revenue dropped nearly 37%, and EBITDA margins dipped from 22% to 18%. PAT margin held near 12.7%, which is decent, but clearly project execution has been lumpy. That’s infra for you—delays are more regular than weekend Netflix binges.
Still, considering FY25’s annual revenue of ₹ 2,439 crore and PAT ₹ 279 crore, Pace isn’t slowing down—it’s just catching breath after its IPO sprint.
5. Valuation Discussion – Fair Value Range Only
Let’s run the numbers, nerd-style (but with swag).
a) P/E Method
- FY25 EPS = ₹ 15.0
- Industry P/E = 20.2
- Reasonable Range = 15x to 25x
→ Fair Value Range = ₹ 225 to ₹ 375 per share
(Current CMP ₹ 226 – bang on lower edge)
b) EV/EBITDA Method
- FY25 EBITDA = ₹ 485 Cr
- EV = ₹ 4,886 Cr
- EV/EBITDA = 9.61x
- Peer Median (Telecom Infra) ≈ 10x–14x
→ Fair Value Range ≈ ₹ 230 – ₹ 320
c) DCF (Simplified)
Assume 15% growth for 3 years, terminal growth 4%, WACC 10%.
→ Fair Value ≈ ₹ 240 – ₹ 310
✅ Final Educational Range: ₹ 225 – ₹ 350
(This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
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