Pace Digitek Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the stock exchanges.

The filing details the company's consolidated operations across telecom infrastructure and energy solutions, which together account for the entirety of its turnover.

Business Segments

The company's revenue is split between two primary verticals:

Telecom infrastructure involves manufacturing power systems and providing EPC services, while energy solutions focus on lithium-ion batteries and storage systems.

Financial Scale

As per the CSR disclosures within the report, the entity reported a turnover of ₹26,413 million and a net worth of ₹22,522 million for the period.

Operational Metrics

Pace Digitek operates three plants and 30 offices nationally, with two international offices. The workforce comprises 2,733 employees as of the end of FY26.

What the Numbers Show

The turnover rate for permanent employees stood at 21.6% in FY26, indicating significant churn within the core workforce relative to the total headcount.

ESG Compliance

The report notes penalties totaling approximately ₹53.27 lakh paid to the Registrar of Companies regarding non-compliance with Section 135(5) of the Companies Act, 2013. No appeals were preferred against these adjudication proceedings.

Pace Digitek received a confirmed work order valued at ₹92.9 crore from Kalpa Power Private Limited for a 100 MWh Battery Energy Storage System (BESS). Completion is targeted by 31 December 2026.

What Happened

The contract covers the supply and commissioning support of the BESS infrastructure. This addition reinforces the company's position in the energy storage segment.

Order in Financial Context

The new order value represents approximately 12.8% of the company's average quarterly revenue of ₹724.58 crore. When combined with prior disclosures, the total disclosed order book stands at ₹6,799.07 crore across 13 orders. This backlog provides coverage for 9.38 quarters of average revenue, offering significant earnings visibility.

Company Order Track Record

Order inflow velocity has accelerated significantly, with Q1FY27 recording ₹6,706.15 crore in wins and Q2FY27 adding further value. The current order size is consistent with the company's recent trend of securing infrastructure contracts.

Execution and Revenue Quality

Revenue recognition remained robust in Q1FY27, with consolidated revenue at ₹583.70 crore and net profit of ₹62.50 crore. The operating profit margin (OPM) stood at 15.50%, slightly below the 18.31% recorded in Q3FY26 but above the 14.88% seen in Q4FY26.

Revenue Growth - Order Wins Translating to Revenue

As Pace Digitek has sustained order wins, with inflow accelerating to ₹6,706.15 crore in Q1FY27 and additional wins in Q2FY27, its annual revenue has grown from ₹2,462.20 crore in FY25 to ₹2,641.27 crore in FY26, representing a YoY growth of +7.3% based on the latest annual data.

Working Capital and Execution Capacity

The company maintains a current ratio of 1.69x, indicating adequate short-term liquidity to fund working capital requirements for ongoing projects. Total Liabilities/Equity stands at 1.41x, reflecting moderate leverage that includes trade payables and non-debt liabilities. Operating cashflow was negative at -₹175.90 crore in FY25, suggesting that receivables or working capital cycles may be stretched despite profitable operations.

What to Watch

• Execution rate: Monitor quarterly revenue run-rate against the ₹6,799.07 crore backlog to assess conversion efficiency.
• OPM trajectory: Track whether margins on new BESS contracts align with historical averages of 15-18%.
• Client concentration: Assess if any single client accounts for more than 40% of the total disclosed order book, given the dominance of DVC and NIRL in recent wins.
• Cash conversion: Observe if operating cashflow improves in FY27 as large projects progress toward completion.

Key Observations

• Backlog signal: Book-to-bill of 9.38x. At this level, execution capacity becomes the binding constraint.
• Cash conversion: Operating cashflow of -₹175.90 crore in FY25; backlog is not converting to cash efficiently, and receivables or working capital cycle may be stretched.