Pace Digitek Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, regarding the utilization of proceeds from its Initial Public Offer (IPO). The report was filed pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and prepared by CRISIL Ratings Limited as the monitoring agency.

IPO Proceeds Overview

The company's IPO, conducted from September 25, 2025, to September 30, 2025, raised gross proceeds of Rs 8,191.48 million through fresh equity shares issuance. After deducting issue expenses of Rs 733.14 million, the net proceeds amounted to Rs 7,458.34 million.

Quarterly Utilization Summary

During the quarter ended December 31, 2025, Pace Digitek utilized Rs 2,265.20 million from the IPO proceeds, leaving Rs 5,926.28 million unutilized. The utilization was distributed across the stated objects of the issue without any deviations from the original plan.

Battery Energy Storage Systems Project

The primary object of the IPO proceeds is funding capital expenditure requirements for investment in the company's subsidiary, Pace Renewable Energies Private Limited. This subsidiary is setting up battery energy storage systems for a project awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL).

The project involves setting up pilot projects of 250 MW/500 MWh capacity, with an additional green shoe capacity of up to 500 MW/1000 MWh standalone battery energy storage systems at 75 substations in Maharashtra. During the quarter, Rs 613.40 million was utilized for purchasing plant and machinery for this project.

General Corporate Purposes Utilization

Out of Rs 949.80 million utilized for general corporate purposes during the quarter, the breakdown includes:

• Expenses in ordinary course of business: Rs 851.80 million (utilized for bank guarantee issuance, roofing solutions, and raw material purchase for BESS)
• Payment of taxes and duties: Rs 70.00 million (statutory payments and professional fees)
• Working capital requirements: Rs 28.00 million (repayment of overdraft facility from Canara Bank)

Notably, Rs 471.40 million of the general corporate purposes amount is earmarked against bank guarantee given for the MSPGCL (Maharashtra State Power Generation Company) project.

Deployment of Unutilized Funds

The company has deployed the unutilized proceeds of Rs 5,926.28 million across various term deposits and bank accounts. The investments are primarily in term fixed deposits with HDFC Bank, ICICI Bank, and Kotak Bank, earning returns ranging from 4.25% to 6.20%. The remaining funds are maintained in current accounts and monitoring accounts across different banks.

Monitoring Agency Assessment

CRISIL Ratings Limited, serving as the monitoring agency, reported no deviations from the objects stated in the offer document. The agency confirmed that all utilization is proceeding as per the disclosures in the prospectus, with proper documentation and certifications from peer-reviewed independent chartered accountants supporting the utilization claims.

Pace Digitek Limited has released its investor presentation for Q3FY26 financial results, showcasing strong operational and financial performance across its integrated infrastructure platform. The company continues to demonstrate its position as a leading provider of telecom and energy solutions with significant growth in both revenue and order book.

Financial Performance Highlights

The company delivered robust financial results for Q3FY26, with consolidated revenue from operations reaching Rs. 6,440 Mn. This represents a substantial 13.5% year-on-year growth and an impressive 20.7% quarter-on-quarter increase, reflecting strong execution capabilities and market demand.

The company maintained healthy profitability with an EBITDA margin of 18.3% and PAT margin of 12.2%. While EBITDA showed a marginal decline of 2.8% year-on-year, it demonstrated strong quarter-on-quarter growth of 25.3%, indicating improved operational efficiency in recent quarters.

Strong Order Book and Business Pipeline

Pace Digitek's order book position remains exceptionally strong, with total orders reaching Rs. 84,678 Mn as of January 31, 2026. The company secured new order wins worth Rs. 31,287 Mn post Q2FY26, demonstrating continued market confidence and business momentum.

The energy segment dominates the order book with Rs. 60,042 Mn, while the telecom and ICT segment contributes Rs. 24,637 Mn, showcasing the company's diversified revenue streams and strong market positioning across both verticals.

Operational Achievements

The quarter witnessed significant operational milestones across both energy and telecom verticals. In the energy segment, the company delivered 200 MWh BESS and successfully commissioned 125 MWh BESS during FY2026. Asset creation under the energy vertical reached Rs. 1,674 Mn from September 2025 to December 2025.

The telecom infrastructure segment also demonstrated strong execution with 417 telecom power equipment commissioned, 428 new telecom towers erected, and 1,891 km of optical fiber cable deployed during the quarter.

Manufacturing Capacity Expansion

Pace Digitek is actively expanding its manufacturing capabilities to support future growth. The company is scaling its BESS manufacturing capacity from the current 2.5 GWh to 10 GWh through multiple facility expansions. The expansion includes existing capacity enhancement, new facility development, and backward integration through container fabrication capabilities.

Strategic Initiatives and Regulatory Compliance

The company has incorporated TransGreenX Energy Private Limited as a new entity to act as an asset-holding and project development company for renewable projects. This strategic move supports the company's BOO (Build-Own-Operate) project portfolio of Rs. 32,500 Mn as of January 31, 2026, enabling long-term operating assets aligned with grid-scale energy storage demand.

In compliance with regulatory requirements, Pace Digitek published extracts of its unaudited financial results for the quarter ended December 31, 2025, in Financial Express and Udayakala newspapers. The complete financial results are available on stock exchange websites and the company's official website, ensuring transparency and accessibility for all stakeholders.