Pace Digitek Reports Strong Q3FY26 Results with 13.5% Revenue Growth
Pace Digitek reported robust Q3FY26 financial performance with revenue of Rs. 644 crores (13.5% YoY growth) and PAT of Rs. 79 crores. The company delivered 400 MWh BESS capacity, expanded manufacturing to target 10 GWh by September 2026, and maintains strong order book of Rs. 8,400 crores with pipeline of Rs. 4,000 crores in energy segment.
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Pace Digitek Limited has delivered robust financial performance in Q3FY26, reporting consolidated revenue from operations of Rs. 644 crores, representing a 13.5% year-on-year growth and 20.7% quarter-on-quarter growth. The company achieved a profit after tax of Rs. 79 crores with a PAT margin of 12.2%, demonstrating strong operational execution across both energy and telecom segments.
Financial Performance Highlights
The company's financial metrics for Q3FY26 showcase steady growth momentum across key parameters:
| Metric: | Q3 FY2026 | Growth (YoY) |
|---|---|---|
| Revenue from Operations: | Rs. 644.00 crores | +13.5% |
| Gross Profit: | Rs. 169.20 crores | - |
| Gross Margin: | 26.3% | vs 32.9% (Q3 FY2025) |
| EBITDA: | Rs. 117.90 crores | - |
| EBITDA Margin: | 18.3% | vs 21.4% (Q3 FY2025) |
| PAT: | Rs. 78.80 crores | +11.3% |
| PAT Margin: | 12.2% | - |
For the nine months ended December 2025, revenue stood at Rs. 1,544.50 crores. The margin compression was attributed to project mix and execution phase differences, while employee expenses increased by 44.5% to Rs. 24.90 crores, reflecting capacity building initiatives across the energy sector.
BESS Manufacturing and Delivery Milestones
Pace Digitek achieved a significant operational milestone by delivering 400 MWh of Battery Energy Storage Systems during Q3FY26, with approximately 200 MWh already commissioned and operating satisfactorily in the field. Chairman & Managing Director Mr. Venugopal Rao Maddisetty highlighted that the company is among the first in India to deliver such substantial BESS capacity in a single quarter.
| Manufacturing Parameter: | Current Status | Target Timeline |
|---|---|---|
| Current BESS Capacity: | 2.50 GWh operational | - |
| Expansion Target: | 5.00 GWh | March 2026 |
| Further Expansion: | 10.00 GWh | September 2026 |
| Next Year Production Target: | 7.50 GWh | FY2027 |
| Container Fabrication Unit: | Under construction | Mid-April 2026 |
The company is implementing backward integration through in-house BESS container manufacturing, which will provide better cost control and supply chain management. All equipment for the 5 GWh expansion has been shipped and is expected to arrive by the first week of March 2026.
Order Book Expansion and Pipeline
The company's order book position demonstrates strong business momentum across both core segments:
| Segment: | Order Book Value | Pipeline Status |
|---|---|---|
| Energy Segment: | Rs. 6,000 crores | Rs. 4,000 crores in pipeline |
| Telecom Segment: | Rs. 2,400 crores | Additional orders expected |
| Total Current: | Rs. 8,400 crores | - |
| Target by March 2026: | Rs. 10,000 crores | Energy segment |
The energy segment order book includes projects where Pace Digitek has been declared L1 bidder, with awards expected before March 2026. The company has secured orders across different BESS applications to avoid aggressive competition in certain market segments.
Strategic Business Structure and BOO Model
Pace Digitek has incorporated TransGreenX Energy Private Limited as a wholly-owned subsidiary to serve as a platform company for Built-Own-Operate (BOO) model projects. The BOO order book currently stands at Rs. 3,250 crores, with asset creation of Rs. 167 crores recorded during Q3FY26 for the MSEDCL project.
| BOO Model Metrics: | Details |
|---|---|
| Current BOO Order Book: | Rs. 3,250 crores |
| Equity IRR: | 13-14% |
| Project IRR: | 10-11.5% |
| Funding Structure: | 25% equity, 75% debt |
| Cost of Borrowing: | ~9% |
The company expects Rs. 2,200 crores of asset creation under the BOO model for FY2027, funded through IPO proceeds of Rs. 750 crores (net) and term loans from financial institutions.
Margin Structure and Competitive Positioning
Pace Digitek operates with a vertically integrated business model providing structural advantages across different business segments:
| Business Component: | Margin Range |
|---|---|
| BESS Product Margin: | 12-15% |
| EPC Project Margin: | 8-10% |
| Telecom Product Margin: | 18%+ |
| Telecom Project Margin: | 13-15% |
The company maintains competitive pricing against Chinese imports through duty advantages (5% on cells vs 10% on finished containers), local support capabilities, and spare parts availability for long-term projects requiring 95% availability under contract terms.
Future Outlook and Expansion Plans
For FY2027, Pace Digitek targets consolidated revenue of Rs. 3,200 crores, supported by strong order book execution and manufacturing capacity expansion. The company plans to explore export opportunities in Africa and Middle East markets, where pricing is more favorable than domestic rates. Manufacturing capacity utilization is expected at 80% based on existing orders, with 6 GWh of BESS orders already secured for the next financial year.
Historical Stock Returns for Pace Digitek
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.97% | -0.45% | +4.82% | -15.61% | -15.61% | -15.61% |
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