Pace Digitek Limited , a player in the energy and telecom sectors, has reported a mixed set of financial results for the second quarter of fiscal year 2025. The company's consolidated performance shows a decline in revenue and profit compared to the same period last year, while its telecom segment continues to be the primary revenue driver.

Financial Highlights

Pace Digitek experienced a significant year-over-year decline in its Q2 FY2025 performance:

• Revenue from operations decreased by 37.0% to ₹5,334.49 million from ₹8,461.92 million in Q2 FY2024.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell by 49.7% to ₹941.00 million, with the EBITDA margin contracting by 446 basis points to 17.64%.
• Net profit declined by 32.7% to ₹641.00 million from ₹952.00 million in the corresponding quarter of the previous year.

Segment Performance

The company's financial results reveal a contrast between its two main business segments:

Telecom Segment

• Continues to be the primary revenue generator, contributing ₹4,168.41 million in Q2 FY2025.
• Segment profit before interest and tax stood at ₹944.92 million.

Energy Segment

• Showed significant growth, with revenue increasing to ₹1,735.62 million in Q2 FY2025 from ₹358.00 million in Q2 FY2024.
• Segment profit before interest and tax was ₹41.62 million.

Strategic Developments

Pace Digitek has announced plans to acquire the remaining 6.13% equity stake in its subsidiary, Pace Renewable Energies Private Limited, making it a wholly-owned subsidiary. This move is expected to enhance operational efficiency in project transfers between the two entities.

Outlook

The contrast between the performance of the telecom and energy segments suggests that Pace Digitek may be experiencing sector-specific challenges. The company's decision to fully acquire its renewable energy subsidiary could be seen as a strategic move to strengthen its position in the energy sector, which has shown substantial growth over the past year.

Investors and analysts will likely be watching closely to see how Pace Digitek addresses the decline in overall performance and whether the company can leverage its strong telecom segment and growing energy business to improve its financial metrics in the coming quarters.

Pace Digitek Limited , a Bengaluru-based telecom and energy infrastructure solutions provider, has announced ambitious expansion plans and strong financial performance for Q1 FY26, positioning itself as a key player in India's digital and energy transition.

Expansion and Strategic Initiatives

Pace Digitek is embarking on a significant expansion in the telecom-energy synergy sector, with a focus on Battery Energy Storage System (BESS) manufacturing. The company has established a new BESS manufacturing facility in Bidadi, Karnataka, strengthening its position in the renewable energy storage market. This move aligns with India's push towards clean energy and grid modernization.

In addition to domestic growth, Pace Digitek is expanding its global footprint with projects in Africa and Asia. The company aims to leverage its integrated Engineering, Procurement, Construction - Operations & Maintenance (EPC-O&M) model to achieve a revenue target of ₹25 billion by FY28.

Q1 FY26 Financial Highlights

Pace Digitek has reported robust financial results for the first quarter of FY26:

The company's revenue growth was primarily driven by strong performance in both telecom and energy segments. Despite a decrease in EBITDA, Pace Digitek managed to improve its bottom line, with PAT increasing by 10.26% year-over-year.

Segment-wise Performance

Telecom Segment

The telecom vertical remains the primary revenue generator for Pace Digitek, contributing ₹3,421.19 million to the overall revenue in Q1 FY26. This segment saw an 8.62% increase compared to Q1 FY25, reflecting the company's strong position in telecom infrastructure solutions.

Energy Segment

The energy division, which includes BESS and renewable energy projects, generated revenue of ₹249.61 million in Q1 FY26. While this represents a slight decrease from Q1 FY25, the segment is poised for growth with the new BESS manufacturing facility and expanding project pipeline.

Strategic Outlook

Mr. Venugopal Rao M, Managing Director of Pace Digitek Limited, commented on the company's performance and future plans: "We are pleased to report another quarter of resilient growth and strategic advances at Pace Digitek. Our consolidated revenue from operations stood at ₹3,670.79 million, driven by robust activity across both telecom and energy segments. With a strong order pipeline, prudent financial discipline, and ongoing investments in next-gen infrastructure, Pace Digitek is well poised to capture new opportunities and deliver lasting shareholder value."

The company's recent successful IPO, which raised ₹8,191.48 million, has significantly strengthened its balance sheet, providing capital for future investments in emerging sectors. Pace Digitek is also focusing on enhancing its O&M capabilities across multiple states in India and expanding its market presence in Kenya and other African countries for telecom and BESS solutions.

Conclusion

Pace Digitek's strategic expansion into BESS manufacturing, coupled with its strong financial performance and global project pipeline, positions the company as a key player in India's digital and energy infrastructure landscape. As the company progresses towards its ₹25 billion revenue target by FY28, investors and industry observers will be closely watching its execution of the integrated Manufacturing-EPC-O&M model and its ability to capitalize on the growing demand for telecom and energy storage solutions both domestically and internationally.