Pace Digitek subsidiary Lineage Power has entered into a Master Supply Agreement (MSA) with Guangzhou Rongjie Energy Technology Co., Ltd for 3 GWh of Lithium Iron Phosphate (LFP) battery cells. The agreement is directed at bolstering Lineage Power's battery energy storage systems (BESS) manufacturing operations and execution capabilities across utility-scale and commercial & industrial applications.

Agreement at a Glance

The key details of the supply agreement are outlined below:

Strategic Highlights

The agreement secures 3 GWh of next-generation LFP cells, featuring Rongjie Energy Tech's new 314Ah storage-specific prismatic cells built for longer cycle life and higher safety. It establishes a long-term operational framework for pricing, quality standards, warranties, and delivery timelines. The partnership leverages Rongjie Energy Tech's manufacturing base in the Guangdong-Hong Kong-Macao Greater Bay Area for efficient shipping to India and international destinations.

Strategic Focus on Energy Storage

The supply agreement between Lineage Power and Rongjie Energy Tech is specifically structured to support the enhancement of BESS manufacturing. Battery energy storage systems play a critical role in modern energy infrastructure, enabling efficient storage and distribution of power. By securing a supply of 3 GWh of battery cells, Lineage Power positions itself to scale its manufacturing capabilities in this segment.

The partnership with Rongjie Energy Tech underscores Lineage Power's intent to strengthen its supply chain for battery cell procurement, a foundational input for BESS production. This agreement reflects Pace Digitek's broader strategic interest in the energy storage domain through its subsidiary operations.

Pace Digitek reported a 10.1% year-on-year increase in profit after tax to ₹307.3 crore for the financial year ended March 31, 2026, driven by growth in its energy and telecom infrastructure businesses. Revenue from operations rose 8.3% to ₹2,641.3 crore during the same period. The company's total order book stood at ₹11,338 crore as of May 25, 2026, providing significant earnings visibility for the coming years.

Financial Performance

For the fourth quarter of FY26, revenue surged 60.5% year-on-year to ₹1,096.8 crore, while profit after tax increased 88.1% to ₹105.9 crore. EBITDA for the quarter grew 114% to ₹163.2 crore, with margins expanding to 14.9%. On a full-year basis, EBITDA stood at ₹455.2 crore, with a margin of 17.2%. The balance sheet reflects a strengthened equity base post-IPO, with total equity reaching ₹2,252.2 crore. Net debt stood at ₹191.6 crore, resulting in a net debt-to-equity ratio of 0.09x. The company deployed ₹417.3 crore of IPO proceeds towards the MSEDCL BESS project capex by the end of FY26.

Order Book and Business Segments

The diversified order book of ₹11,338 crore is split between Energy (78.1%) and Telecom & ICT (21.9%). In the Energy segment, the company has secured 5.32 GWh of executable orders across Build-Own-Operate (BOO), EPC, and supply models, totalling ₹8,854 crore. The Telecom & ICT segment contributes ₹2,484 crore to the order book, driven by projects for clients such as BSNL and Railtel.

GigaFactory Expansion and Revenue Guidance

Pace Digitek is advancing its GigaFactory expansion with defined capacity milestones, targeting 2.5 GWh of battery manufacturing capacity by Q2 FY27 and 5 GWh of backward integration by Q3 FY27. This is part of the company's broader plan to scale BESS manufacturing capacity from 2.5 GWh to 10 GWh to support the growing order book. The company had commissioned a large-scale BESS manufacturing facility at Bidadi, Karnataka, in FY25. Management has provided revenue guidance of ₹3,200–3,400 crore for FY27 and ₹4,000–4,200 crore for FY28, underpinned by the strong order book and structural demand for energy transition infrastructure.

BESS Capacity Scale-Up

Pace Digitek's material subsidiary, Lineage Power Private Limited, is progressing towards a total manufacturing capacity of 10 GWh by Q3 FY27. Installation and commissioning activities for an additional 2.5 GWh manufacturing line are in advanced stages, with completion expected in July 2026. This expansion will increase the total installed capacity from 2.5 GWh to 5 GWh. Infrastructure development for the next 5 GWh phase is substantially complete, with production line orders placed and operations targeted for Q3 FY27. Additionally, a dedicated container fabrication facility is expected to become operational in Q2 FY27 to enhance backward integration and supply chain control.