Detailed Narrative
Strong Q4 and Full Year FY26 Performance
Pace Digitek delivered robust financial results for Q4 and the full year FY26. Consolidated revenue from operations for Q4 FY26 stood at ₹1,097 crores, marking a significant 60.5% year-on-year growth. For the full year, revenue reached ₹2,641 crores, an 8.3% increase over FY25. PAT for FY26 grew 10.1% to ₹307 crores, with the PAT margin slightly improving to 11.4% from 11.3% in the previous year, despite a dip in EBITDA margins due to a changing business mix.
Aggressive BESS Capacity Expansion and Strategic Focus
The company is rapidly expanding its Battery Energy Storage Systems (BESS) manufacturing capacity. It is in the process of increasing capacity from 2.5 GWh to 5 GWh, expected to be operational by July 2026. Further expansion to 10 GWh is planned, with operations anticipated by October 2026. This expansion is ahead of earlier schedules, driven by strong demand and order book visibility. Pace Digitek also plans to undertake in-house container fabrication, which is expected to improve overall pricing and operating efficiencies by 4% to 5%.
Diversified and Growing Order Book
As of May 25, 2026, Pace Digitek holds a healthy executable order book of ₹11,338 crores. The energy sector is a major contributor, accounting for ₹8,854 crores (78.1%), while Telecom & ICT contributes ₹2,484 crores (21.9%). This diversification reflects the company's transition into an integrated infrastructure platform. The company has already delivered 178 BESS containers in FY26 and is actively securing new orders, including from BSNL and RailTel for Railway Kavach and digital infrastructure projects.
Improved Financial Health and Working Capital Management
The company's financial health has strengthened, with total equity increasing to ₹2,252 crores in FY26, supported by IPO proceeds. Total debt stood at ₹961 crores, resulting in a comfortable debt-to-equity ratio of 0.43x and a net debt-to-equity ratio of 0.09x. Finance costs significantly reduced to ₹60 crores in FY26 from ₹115 crores in FY25, attributed to reduced borrowings and an improved credit rating from BBB- to A-. However, working capital was stretched due to a strategic inventory build-up of ₹540 crores and increased trade receivables of ₹2,442 crores, primarily from concentrated Q4 sales, which is expected to normalize by September 2026.
Positive Outlook and Strategic Initiatives
Pace Digitek provided strong revenue guidance, targeting ₹3,200-3,400 crores for FY27 and ₹4,000-4,200 crores for FY28. The company expects PAT margins to be in the range of 10-11% for FY27. Strategic initiatives include focusing on the Commercial and Industrial (C&I) segment for BESS, exploring cell manufacturing, and expanding internationally through partnerships like NEC XON for African markets, targeting 300-500 MWh of orders in FY27.