Pace Digitek Limited reported robust financial performance for the first quarter of FY27, with revenue from operations rising 51.3% year-on-year to ₹5,554 crore. The growth was primarily driven by its energy business, which accounted for 79.5% of total revenue, reflecting accelerated execution in Battery Energy Storage Systems (BESS) and renewable energy projects.

Net profit for the quarter climbed 14.3% to ₹625 crore, compared to ₹547 crore in Q1FY26. EBITDA grew 7.5% to ₹861 crore, with margins contracting slightly to 15.5% from 21.8% in the prior year period. The company’s order book strengthened significantly, reaching ₹108,033 crore as of June 30, 2026, up from ₹96,613 crore at the end of FY26, supported by incoming orders worth ₹16,766 crore during the quarter.

Financial Performance Highlights

The company’s financial metrics for Q1FY27 demonstrate strong top-line growth alongside stable profitability. Gross profit expanded 32.8% year-on-year to ₹1,555 crore, maintaining a margin of 28.0%. While EBITDA margins dipped to 15.5% from 21.8% in Q1FY26, they improved sequentially from 14.9% in Q4FY26.

What the Numbers Show

A significant shift in revenue composition is evident, with the energy segment’s contribution jumping from just 6.8% in Q1FY26 to nearly 80% in Q1FY27. This pivot aligns with the company’s strategic expansion into BESS manufacturing and EPC services. Despite the lower absolute EBITDA margin compared to the previous year, the absolute EBITDA value grew, indicating that volume growth in the energy business is offsetting margin compression. Furthermore, finance costs more than doubled to ₹283 crore from ₹97 crore in Q1FY26, likely reflecting increased leverage to fund the rapid scaling of energy infrastructure projects and manufacturing capacity.

Operational Updates and Capacity Expansion

Pace Digitek continues to scale its BESS manufacturing capabilities, having operationalized a facility with 5 GWh installed capacity. The company is on track to expand this to 10 GWh by the end of FY27 through phased upgrades and new facility commissioning. In Q1FY27, the company executed 975 MWh of utility-scale BESS capacity, including progress on key projects such as the MSEDCL standalone BESS BOO project, where 39 of 75 sites are now operational.

The telecom & ICT business remains a steady contributor, with an order book of ₹23,503 crore as of June 30, 2026. Major clients include BSNL, Railtel, and Indian Railways, supporting ongoing infrastructure modernization efforts such as BharatNet and railway Kavach systems.

Future Outlook

Management has provided revenue guidance of ₹32,000–₹34,000 crore for FY27 and ₹40,000–₹42,000 crore for FY28. Strategic priorities include scaling utility-scale BESS execution, enhancing localization through backward integration, and expanding international presence in markets such as Saudi Arabia and Kenya. The company also plans to develop indigenous cell manufacturing capabilities in collaboration with IISER Pune to strengthen its supply chain resilience.

Pace Digitek Limited reported a 51.3% year-on-year increase in consolidated revenue from operations to ₹5,554 million for the quarter ended June 30, 2026 (Q1FY27), driven by robust execution across its Energy and Telecom & ICT segments. Profit after tax (PAT) rose 14.3% to ₹625 million, while EBITDA grew 7.5% to ₹861 million. The company underscored a strong executable order book of ₹108,033 million as of June 30, 2026, providing significant revenue visibility. Subsequent to the quarter-end, Pace Digitek commissioned an additional 2.5 GWh Battery Energy Storage System (BESS) manufacturing line, doubling its total installed capacity to 5 GWh. The Board of Directors approved the unaudited standalone and consolidated financial results on August 05, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were subjected to a limited review by the statutory auditors, S S Kothari Mehta & Co. LLP.

Financial Performance

Consolidated EBITDA margin contracted to 15.5% from 21.8% in the corresponding period last year, reflecting the cost intensity associated with scaling the Energy segment. PAT margin stood at 11.3%, down from 14.9% in Q1FY26. The divergence between standalone and consolidated results underscores the growing contribution of subsidiaries, particularly in the energy storage space. Standalone revenue from operations was ₹2,642 million, down 22.2% YoY, due to inter-company eliminations of ₹2,509 million from gross standalone revenue of ₹5,151 million.

Operational Highlights

In the Energy segment, Pace Digitek successfully delivered 90 BESS containers during the quarter. The executable Energy order book stood at ₹84,530 million, with overall BESS order visibility exceeding 5 GWh. The company secured three new orders worth ₹16,766 million in Q1FY27, including major BESS EPC contracts with NLC India (₹7,099 million) and DVC (₹7,020 million). Execution on the MSEDCL Standalone BESS BOO project progressed ahead of schedule, with 375 MWh capacity added in Q1FY27. Ground work has started for SECI (Solar + BESS BOO) and KPTCL (Standalone BESS BOO) projects.

In the Telecom & ICT segment, the executable order book was ₹23,503 million. During the quarter, the company received an Advance Work Order from Bharat Sanchar Nigam Limited (BSNL) for the BharatNet programme in the Sikkim Telecom Circle, valued at ₹2,647 million. Railways Kavach projects are currently under the survey phase.

Strategic Developments

Pace Digitek entered into an Original Equipment Manufacturer (OEM) partnership with NEC XON Systems Proprietary Limited, South Africa, to market and deploy grid-scale BESS solutions across South Africa, Botswana, Mozambique, Namibia, and Mauritius. Following the quarter-end, the company signed a strategic cooperation agreement with MEGMEET Electrical India to support AI data center power infrastructure opportunities. Additionally, Pace Digitek established the Pace-Lineage Research Center in Pune in collaboration with IISER Pune for Advanced Chemistry Cells (ACC) research, focusing on Lithium-ion and Sodium-ion battery materials.

What the Numbers Show

The margin compression despite revenue growth indicates a transitional phase as the company scales its capital-intensive BESS manufacturing and EPC operations. The expansion of manufacturing capacity to 5 GWh, with plans to reach 10 GWh by the end of FY27, suggests a strategic shift towards backward integration to capture higher value margins in the long term. The robust order book, diversified across BOO (48.2%) and EPC (51.7%) scopes, provides a cushion against near-term margin pressures, ensuring sustained utilization of the expanded capacity. Management has provided revenue guidance of ₹32,000–34,000 million for FY27 and ₹40,000–42,000 million for FY28.