Pace Digitek reported a strong rise in Q4 revenue as the company’s battery energy storage system (BESS) business rapidly expanded and moved closer to overtaking its traditional telecom infrastructure operations.
The Bengaluru-based company posted consolidated revenue of Rs. 2,641 crore for FY26, registering an 8.3 percent year-on-year growth, while profit after tax rose 10.1 percent to Rs. 307 crore. However, the biggest jump came during the January-March quarter, where revenue surged 60.5 percent year-on-year to Rs. 1,097 crore and quarterly profit climbed 88.1 percent to Rs. 106 crore.
The company’s fast-growing energy business has now become the key growth driver. Energy projects contributed 45.4 percent of FY26 revenue, while telecom accounted for 54.6 percent. Pace Digitek expects the energy segment to dominate revenues over the next two years as demand for large-scale battery storage projects rises sharply across India.
The company said nearly 78 percent of its Rs. 11,338 crore order book now comes from the energy segment. During FY26, Pace delivered 178 grid-scale BESS containers from its 2.5 GWh manufacturing facility and executed around 480 MWh of utility-scale storage capacity. The company is now expanding its manufacturing capacity to 10 GWh in phases by FY27.
Pace Digitek has secured major battery storage orders from government-backed organizations including Maharashtra State Electricity Distribution Company Limited, Solar Energy Corporation of India, NTPC Limited, Damodar Valley Corporation and NLC India Limited. The executable energy order book currently stands at 5.32 GWh, divided almost equally between EPC projects and Build-Own-Operate (BOO) projects.
The company believes its BOO portfolio could become a stable long-term revenue stream as several projects are expected to become operational during the current fiscal year.
Despite the strong topline growth, the company faced pressure on margins and cash flows. Gross margins declined to 25.6 percent from 29.3 percent, while EBITDA margins slipped to 17.2 percent from 19.8 percent. Return on capital employed also fell sharply after the company’s IPO expanded its equity base.
Debt levels increased significantly during the year, with total debt rising to Rs. 961 crore. Operating cash flow also remained under pressure as receivables crossed Rs. 2,066 crore due to delayed payments from government-linked entities and utilities.
The company’s BESS subsidiary, Pace Renewable Energies, has already drawn Rs. 606 crore from an approved Rs. 1,221.5 crore funding line from Indian Renewable Energy Development Agency for the MSEDCL battery storage project. The company’s shift towards large-scale battery energy storage projects became clearly visible during the fourth quarter. Pace Digitek reported a 60.5 percent year-on-year jump in Q4 revenue to Rs. 1,097 crore, while profit after tax rose 88.1 percent to Rs. 106 crore. The energy segment now contributes 78.1 percent of the company’s Rs. 11,338 crore order book. During FY26, the energy business accounted for 45.4 percent of total revenue compared to telecom’s 54.6 percent. The company expects the energy segment to overtake telecom revenues by FY28.
Looking ahead, the company has projected FY27 revenue between Rs. 3,200 crore and Rs. 3,400 crore, while FY28 revenue guidance stands between Rs. 4,000 crore and Rs. 4,200 crore.
While Pace Digitek currently enjoys an early execution advantage in India’s rapidly growing BESS sector, competition is expected to intensify as large players such as Adani Group, JSW Group, Tata Power, ReNew Energy Global and Waaree Energies continue expanding their energy storage businesses.
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