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.

Pace Digitek Limited will host an analyst and institutional investor meeting on August 27, 2026, as part of the DAM Capital Renewable Energy Conference. The event aims to facilitate direct engagement with market participants regarding the company’s operations.

The interaction is scheduled for 10:00 am in Mumbai. The format includes both group sessions and one-on-one meetings with investors and analysts. This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Meeting Details

The company noted that the schedule remains subject to change based on exigencies from either the investors or the company. Management emphasized that only information available in the public domain will be discussed during the session.

No unpublished price-sensitive information will be shared or disclosed during the meeting. The notice was issued by Meghana M P, Company Secretary and Compliance Officer, on August 24, 2026.