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1 — At a Glance
Pace Digitek builds telecom towers and optical fibre networks, and makes battery energy storage systems — large batteries that hold electricity for a grid. It listed ten months ago. Revenue for the three months to June 2026 was ₹555 crore, against ₹367 crore a year earlier. That is a rise of 51.3%. Operating profit was ₹86 crore, against ₹80 crore a year before. The move on that line was 7.5%. The top line sprinted and the operating line jogged. Profit attributable to owners was ₹61.3 crore, against ₹54.2 crore.
Set against the previous quarter, the direction reverses. Revenue in the three months to March 2026 was ₹1,097 crore, about double the June figure. Management attributes the fall to milestone-based revenue recognition, with several projects in early execution stages. It also describes the March quarter as an exceptionally strong one for execution. The chief financial officer says the year to March 2027 aims to book 40 to 45% of annual revenue in the first half. The comparable share a year earlier was 35%.
Other income was ₹28 crore for the quarter, from foreign-exchange gains and interest on deposits. A year earlier that line was ₹5.6 crore. Operating profit for the same quarter was ₹86 crore. Both numbers sit in the profit and loss account, and Section 9 gives them their own columns.
The executable order book stands at ₹10,803 crore. Fresh orders won during the quarter came to ₹1,677 crore. Battery storage manufacturing capacity doubled to 5 GWh in August 2026. Cash from operating activities for the year to March 2026 was negative ₹917 crore. Energy now accounts for four-fifths of revenue.
2 — Introduction
Pace Digitek was incorporated in 2007 as Pace Power Systems Private Limited. It builds telecom infrastructure and, increasingly, energy storage. The company designs and manufactures telecom towers and optical fibre networks, then installs, commissions and maintains them. It also makes direct-current power systems, lithium batteries, monitoring systems and inverters. Three manufacturing facilities in Karnataka cover 200,000 sq ft.
The company listed on 6 October 2025, raising ₹819 crore through a fresh issue of 3.73 crore equity shares. Net proceeds came to ₹745.8 crore. By 30 June 2026 it had used ₹672.2 crore of that, with ₹146.9 crore still sitting in bank accounts. ₹630 crore had been earmarked for a battery storage project for the Maharashtra State Electricity Distribution Company. ₹486 crore of that has been spent, through the subsidiary Pace Renewable Energies. Crisil, a credit-rating agency, serves as monitoring agency for the issue proceeds.
The past fifteen months have been busy in the way of a company scaling a new product line. In May 2026 it won a ₹709.9 crore battery storage contract in Tamil Nadu from NLC India. That covers engineering, procurement and construction, plus twelve years of operations and maintenance. The same month brought a ₹264.7 crore BharatNet order in Sikkim from BSNL, the state-owned telecom operator. In June the board approved a battery storage expansion of 7.5 GWh, with capital spending of ₹200 crore. It also approved an employee share option scheme and the purchase of a 49% stake in Inso Pace. A postal ballot that month, a shareholder vote conducted by post, sought approval for related-party dealings with group companies. The amounts were ₹3,650 crore, ₹1,035 crore and ₹910 crore.
Crisil reaffirmed its ratings at A-/Stable and A2+ on 1 April 2026. It raised the rated bank facilities from ₹1,000 crore to ₹1,400 crore. Its rationale cites a longstanding presence in telecom, integrated operations, a vast order book and a strong financial risk profile. Crisil says those strengths are partially offset by susceptibility to tender-based operations and large working capital requirements.
Subsidiaries now include Lineage Power, the battery storage manufacturer, along with Pace Renewable Energies and TransGreenx Energy. The corporate tree has grown faster than most family trees. The list also carries Lineage Defence and Aerospace, Pace Ecoplanet Solace, a Singapore holding company and a Myanmar step-down entity.
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3 — Business Model: WTF Do They Even Do?
The company runs three verticals. Telecom covers towers, optical fibre and the operations and maintenance contracts that follow. Energy covers solar projects, battery energy storage systems and lithium-ion products. The third, information and communications technology, covers surveillance systems, smart classrooms and smart kiosks. The kiosks serve agricultural and educational uses. A firm selling 500 MWh grid batteries also sells a kiosk to a village.
The product catalogue reads like a hardware store run by electrical engineers. It runs from SMPS units and direct-current power systems to inverters and power boosters. Then AC-DC converters, IPMU and IPMS modules, and remote management systems. Then charge control units, solar optimisers and solarisation kits. Then lithium-ion modules and racks, battery cabinets and, through Lineage, liquid-cooled containerised storage with conversion, energy and battery management systems attached.
The stated logic is vertical integration: make the box, execute the construction contract, then own the asset and collect the annuity. Management says it deliberately balances contracting work against build-own-operate projects, so that revenues and cash flows are both maintained. The energy order book is ₹8,453 crore. Build-own-operate accounts for ₹4,074 crore and contracting for ₹4,367 crore.
Management raised an accounting wrinkle unprompted. The chief financial officer states that a solar-plus-storage build-own-operate project is not treated as revenue, because it goes in as a fixed asset. The managing
