Pace Digitek Q3 FY26: ₹7,633 Cr Order Book, 41% ROCE, 276 Days Debtors — Infra Hero or Working-Capital Horror Story?

1. At a Glance

Pace Digitek is that kid who cracked IIT, topped CAT, and still hasn’t figured out how to manage pocket money.
Market cap of ₹4,166 Cr, stock price ₹193, ROCE a gym-bro level 41.3%, ROE 31.4%, and a P/E of 16.6x — all screaming “value infrastructure play”.

But then you scroll one inch lower and boom 💥 — debtors at 276 days, working capital days ballooning to 113, and public-sector clients making up 96% of revenues.

Latest Q3 FY26 results?

• Revenue: ₹644 Cr
• PAT: ₹78.8 Cr
• YoY sales growth: 13.5%
• YoY profit growth: 8%

And the real flex: an order book of ₹7,633 Cr, nearly 3.4x FY25 revenues, with ₹3,852 Cr fresh orders in a single year.

Sounds sexy. But is it sustainable sexy or PSU-payment-delay sexy? Let’s audit this beast.

2. Introduction

Pace Digitek is what happens when telecom infra, solar EPC, lithium batteries, and government tenders all get married in Andhra Pradesh and decide to go public.

Founded in 2007, the company quietly built itself into a full-stack telecom infrastructure solutions provider — designing, manufacturing, installing, commissioning, operating, and maintaining everything from DC power systems to optical fibre networks to containerized BESS units.

For years, it stayed under the radar. Then came the IPO in October 2025, raising a chunky ₹819 Cr, and suddenly everyone discovered that this “boring EPC company” was sitting on:

• 41% ROCE
• Net margins above 11%
• 81.8% revenue CAGR (3 years)

But before we start distributing garlands, remember this:
Infrastructure companies don’t die from lack of orders.
They die from cash flow.

So the real question isn’t “Does Pace Digitek have growth?”
The real question is — can it convert that growth into actual cash before banks start sending good morning messages?

3. Business Model – WTF Do They Even Do?

Think of Pace Digitek as a