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1 — At a Glance
Ten months after listing, Pace Digitek reported June-quarter revenue of ₹555 Cr, up 51.3% from ₹367 Cr a year earlier. Operating profit came in at ₹86 Cr against ₹80 Cr, a 7.5% move — the top line sprinted, the operating line jogged. PAT attributable to owners was ₹61.3 Cr versus ₹54.2 Cr.
Sequentially the picture inverts. March quarter revenue was ₹1,097 Cr; June was half that. Management explained the drop as milestone-based revenue recognition with several projects in early execution stages, and described Q4 as an exceptionally strong execution quarter. The CFO said FY27 aims to book 40–45% of annual revenue in H1, against 35% in H1 FY26.
Other income was ₹28 Cr for the quarter — from foreign-exchange gains and interest on deposits — against ₹5.6 Cr in the year-ago quarter. Operating profit for the same quarter was ₹86 Cr. Both numbers sit in the P&L, and Section 9 gives them their own columns.
The executable order book stands at ₹10,803 Cr, with ₹1,677 Cr of fresh orders won in the quarter. BESS manufacturing capacity doubled to 5 GWh in August 2026. Full-year FY26 cash from operating activities was negative ₹917 Cr.
A telecom tower company that now derives four-fifths of its revenue from energy is an unusual thing to describe. We’ll try.
2 — Introduction
Incorporated in 2007 as Pace Power Systems Private Limited, the company builds telecom infrastructure and, increasingly, energy storage. It designs, manufactures, installs, commissions and maintains telecom towers and optical fibre networks, and manufactures DC power systems, lithium batteries, monitoring systems and inverters. Three manufacturing facilities in Karnataka span 200,000 sq ft.
It listed on 6 October 2025, raising ₹819 Cr through a fresh issue of 3.73 crore equity shares at a premium of ₹217. Of the ₹745.8 Cr net proceeds, ₹672.2 Cr had been utilised by 30 June 2026, with ₹146.9 Cr still sitting in bank accounts — ₹486 Cr of the ₹630 Cr earmarked for the Maharashtra State Electricity Distribution Company BESS project has been spent through subsidiary Pace Renewable Energies. Crisil serves as monitoring agency.
The past fifteen months have been busy in the way that only a company scaling a new product line can be. In May 2026 it won a ₹709.9 Cr BESS EPC and 12-year O&M contract in Tamil Nadu from NLC India, and a ₹264.7 Cr BSNL BharatNet order in Sikkim. In June the board approved a 7.5 GWh BESS expansion with ₹200 Cr capex, an ESOP scheme, and a 49% stake acquisition in Inso Pace. A postal ballot the same month sought approval for related-party transactions of ₹3,650 Cr, ₹1,035 Cr and ₹910 Cr.
Crisil reaffirmed its ratings at A-/Stable and A2+ on 1 April 2026, enhancing the rated bank facilities from ₹1,000 Cr to ₹1,400 Cr. Its rationale cites longstanding presence in the telecom segment, integrated operations, a vast order book and a strong financial risk profile, partially offset by susceptibility to tender-based operations and large working capital requirement.
Subsidiaries now include Lineage Power (the BESS manufacturer), Pace Renewable Energies, TransGreenx Energy, Lineage Defence and Aerospace, Pace Ecoplanet Solace, a Singapore holding company and a Myanmar step-down entity. The corporate tree has grown faster than most family trees.
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3 — Business Model: WTF Do They Even Do?
Three verticals. Telecom: towers, optical fibre, and the O&M contracts that follow. Energy: solar projects, battery energy storage systems, lithium-ion products. ICT: surveillance systems, smart classrooms and smart kiosks, the last of which serve agricultural and educational use cases — a company that sells 500 MWh grid batteries also sells a kiosk to a village.
The product catalogue reads like a hardware store run by electrical engineers: SMPS, IPMU, IPMS, DC power systems, inverters, power boosters, AC-DC converters, remote management systems. Then charge control units, solar optimisers, solarization kits. Then lithium-ion modules and racks, battery cabinets, and — through Lineage — liquid-cooled containerised BESS with PCS, EMS and BMS attached.
The stated logic is vertical integration: manufacture the box, execute the EPC, then own the asset and collect the annuity. Management describes deliberately balancing EPC and Build-Own-Operate work so that revenues and cash flows are both maintained. Of the ₹8,453 Cr energy order book, BOO accounts for ₹4,074 Cr and EPC ₹4,367 Cr.
There is an accounting wrinkle management raised unprompted. The CFO stated that a solar-plus-BESS BOO project is not treated as revenue because it goes as a fixed asset; the MD described standalone BESS BOO as resembling rental power, while solar-plus-BESS is power selling at a per-unit tariff with only monthly power revenue recognised. So a portion of physical execution lands on the balance sheet rather than the income statement. Building the thing and selling the thing are, here, two different line items.
Customer concentration at IPO was disclosed as top three customers at 89% and top five at 95%, with public-sector customers at 96%. Facility utilisation was 38.5% for passive equipment and 15% for battery systems in FY25 — the factories had room, and the BESS ramp is now filling it.
Container fabrication,
