Pace Digitek Q2 Revenue Jumps 51% to ₹808 Cr; Raises FY27 Guidance to ₹3,500 Cr

Key numbers

Q2 Revenue	₹808.17 Cr51.5% YoY Growth
Net Profit	₹93.89 Cr46.5% YoY Growth
Order Book	₹10,735 CrExecutable Pipeline
PE TTM	9.13Sector PE 55.97

Key highlights

• Consolidated revenue for Q2 FY27 reached ₹808.17 crore, a 51.5% increase year-on-year
• Net profit grew by 46.5% YoY to ₹93.89 crore, supported by an EBITDA margin of 19.6%
• The executable order book stood at ₹10,735 crore, with energy storage accounting for ₹8,528 crore
• BESS manufacturing capacity doubled to 5 GWh in August 2026, with a 10 GWh target by Dec 2026
• Management raised FY27 revenue guidance to ₹3,300–3,500 crore from the previous ₹3,200–3,400 crore

Scaling the Energy Storage Segment

Pace Digitek’s growth strategy is increasingly centered on Battery Energy Storage Systems (BESS), which contributed 80% of total revenue during the quarter. The company sold 100 containers in Q2 FY27, maintaining a steady run rate as it transitioned to its expanded 5 GWh manufacturing line. Management is targeting the burgeoning domestic energy storage market, citing a national demand visibility of 236 GWh by 2032.

To maintain competitiveness against Chinese imports, the company has integrated in-house container fabrication, which is expected to yield a 4-5% overall cost benefit for BESS products. Production is currently running at full capacity for the newly commissioned lines.

Guidance Revision and Order Wins

• FY27 revenue guidance raised to ₹3,300–3,500 crore due to strong H1 performance.
• Revenue target for FY28 set between ₹4,000 crore and ₹4,200 crore.
• Energy segment executable orders stand at ₹8,528 crore as of September 30, 2026.
• Secured significant new EPC and supply orders from NLC India, DVC, and BSES Rajdhani Power.
• Telecom segment revenue reached ₹162 crore, bolstered by BSNL 4G network maintenance and O&M services.

Margin Protection and Global Supply Chains

The BESS manufacturing capacity expansion and our in-house container facility will be able to produce about 50% of the capacity of our BESS that we are manufacturing in-house, significantly improving our lead times.

Balance Sheet and Project Financing

Total debt rose to ₹1,371 crore, primarily to fund the company's capital-intensive Build-Own-Operate (BTO) projects, which currently represent an asset base of ₹1,258 crore. These BTO assets are expected to generate recurring revenue of approximately ₹197 crore per annum once fully commissioned. Management clarified that project-specific borrowing accounts for the bulk of the leverage, with a Net Debt to Equity ratio of 0.35x.

Working capital efficiency improved as the company began collecting retention payments from older telecom projects, even as it invested in the initial phases of high-margin solar and storage projects for DVC and NLC India.

What to watch next

• Commissioning of the expanded 10 GWh BESS manufacturing capacity by December 2026.
• Impact of China's export rebate cuts on lithium cells starting January 1, 2027.
• Bidding outcomes for 27 GWh pipeline across utility-scale BESS and renewable tenders.

“Our energy business continues to be the growth driver for this company this year and the years to come.”

“The reduction of these receivables clearly reflects the improvement of the overall receivable position as we started collecting the retention portions of the older projects.”

Pace Digitek · financial snapshot

Share price	₹139.65
Market capitalisation	₹3,014.36 Cr
Revenue (annual)	₹2,641.27 Cr
Net profit (annual)	₹297.57 Cr
Revenue (latest quarter)	₹808.17 Cr+45.52% vs previous quarter
Net profit (latest quarter)	₹93.89 Cr+53.11% vs previous quarter
P/E (TTM)	9.13×Sector 55.97×
Promoter holding	69.52%0.00% QoQ
FII holding	0.18%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.