Shares of Pace Digitek Ltd surged more than 11 percent on Tuesday after the company highlighted a series of expansion initiatives aimed at strengthening its position in the energy storage and clean energy sectors.
With a market capitalization of ₹4,290 crore, the stock climbed to an intraday high of ₹206, compared with the previous close of ₹183.8. The company is currently trading at a price-to-earnings ratio of 13.4 times, against an industry average of 15.2 times.
#### Order book provides long-term visibility
Pace Digitek’s total order book has grown to ₹11,338 crore, providing significant revenue visibility.
Management has guided for:
- FY27 revenue: ₹3,200-3,400 crore
- FY28 revenue: ₹4,000-4,200 crore
The company operates in telecom infrastructure and solar solutions and manufactures DC power systems, lithium batteries, monitoring systems and inverters.
#### Battery energy storage expansion underway
Pace Digitek is scaling up its Battery Energy Storage System (BESS) business.
The company currently has manufacturing capacity of 2.5 GWh, with utilization running at around 80 percent. It plans to add another 7.5 GWh, taking total capacity to 10 GWh.
The expansion will require an investment of approximately ₹200 crore, which the company intends to fund internally.
As part of the first phase, Pace Digitek will add 2.5 GWh capacity at its existing facility, increasing total capacity to 5 GWh by FY27 to support execution requirements of 5.32 GWh.
#### ₹8,854 crore BESS order book
The company has a dedicated BESS order book of ₹8,854 crore.
Key customers include:
- NTPC
- NLC India
- Damodar Valley Corporation (DVC)
- KREDL
- SECI
These orders provide support for the company’s planned capacity expansion.
#### Backward integration through container manufacturing
Pace Digitek is establishing an in-house container manufacturing facility.
Construction has been completed and equipment installation is currently in progress.
According to the company, the facility is expected to:
- Improve supply chain efficiency
- Reduce dependence on third-party suppliers
- Shorten delivery timelines
- Enhance project execution flexibility
- Support margin improvement through cost savings
#### New research centre in Pune
The board has approved the establishment of a dedicated research centre in Pune, Maharashtra.
The facility will focus on:
- Clean energy technologies
- Renewable energy innovation
- Indigenous technology development
- Use of locally sourced materials
The initiative aligns with the government’s Atmanirbhar Bharat and Make in India programmes.
#### Stake increase in subsidiary
Pace Digitek has approved the acquisition of an additional 49 percent stake in Inso Pace Private Limited, increasing its holding from 51 percent to 99.99 percent.
The transaction is expected to be completed by December 2026.
Inso Pace is engaged in:
- Renewable energy projects
- Solar solutions
- Telecom tower solarisation
- Battery energy storage services
The company expects the transaction to improve operational efficiency and facilitate project execution.
#### International expansion
Alongside its domestic growth plans, Pace Digitek is pursuing opportunities in overseas markets, including:
- Saudi Arabia
- Kenya
- Other African regions
The company is targeting telecom infrastructure and battery energy storage opportunities in these markets to diversify revenue streams.
TL;DR
Pace Digitek shares rose 11 percent after the company outlined plans to expand battery storage capacity from 2.5 GWh to 10 GWh. Backed by an order book of ₹11,338 crore and ₹8,854 crore in BESS projects, the company is also investing in research, backward integration and international expansion.
AI Summary
- Pace Digitek’s shares climbed over 11 percent.
- Total order book stands at ₹11,338 crore.
- BESS order book amounts to ₹8,854 crore.
- Manufacturing capacity will increase from 2.5 GWh to 10 GWh.
- The company is setting up a research centre and increasing its stake in Inso Pace.
