Pace Digitek: Strategic Expansion into Battery Storage & Growth Outlook

!PACEDIGITK Key Investment & Returns The capital will primarily fund a 1,500 MWh BESS project with the Maharashtra State Electricity Distribution Company (MSEDCL). This project is structured on a 12-year fixed annuity model, projected to generate ₹238 crore in annual revenue and deliver a 14% internal rate of return (IRR) on equity. This move is supported by the company's in-house manufacturing capacity of 5 GWh battery systems. Financial Strength & Forward Guidance The company reports a robust order book exceeding ₹7,000 crore, scheduled for execution over the next 18-24 months, providing strong revenue visibility. After revenues stabilized at approximately ₹2,400 crore in FY25 (following a major jump in FY24), management anticipates accelerated growth in FY26. Profitability & Strategic Advantage Profit margins, currently around 20%, are expected to be sustained or improved. This is attributed to the company's key strategic advantage: strong backward integration across its telecom and energy segments, which enhances both profitability and execution efficiency. Future Vision & Risk Management Pace Digitek is undergoing a strategic diversification, aiming for the energy sector to contribute 50% of total revenue by FY27. Management confirms a healthy balance sheet with minimal debt, asserting that its working capital cycle (around 150 days) is well-managed through milestone-based payments on its predominantly government-backed projects, ensuring efficient cash conversion.