Pace Digitek Secures Major Energy Storage Contract
Shares of Bengaluru-based telecom infrastructure solution provider Pace Digitek experienced a significant 3% surge during Wednesday's trading session, closing at ₹223.70 per share. This upward movement came as a direct response to the company's announcement of securing a substantial new order worth ₹200 crore.
The company officially disclosed through regulatory filings that its material subsidiary, Lineage Power Private Limited, has been awarded this prestigious contract from engineering giant Larsen & Toubro Limited. This development marks another milestone in Pace Digitek's growing portfolio of energy infrastructure projects.
Order Details and Project Specifications
The newly secured order involves the supply of advanced Battery Energy Storage Systems (BESS), specifically featuring LiFePo4 liquid-cooling technology integrated within specialized containers. These systems are destined for the Bihar State Power Generation Company Limited located in Kajra, representing a significant step forward in the state's power infrastructure development.
In a crucial clarification, the company emphasized that the promoters or promoter group companies maintain no interest in the entity that awarded this contract. Furthermore, Pace Digitek confirmed that this transaction does not qualify as a related-party arrangement, ensuring complete transparency in the business dealings.
This achievement represents the company's second major order win within a remarkably short timeframe. Just last week, Pace Digitek had secured an even larger contract valued at ₹929 crore from the Maharashtra State Power Generation Company Limited. That particular project encompasses the comprehensive design, engineering, manufacturing, supply, erection, inspection, installation, testing, and commissioning of a 200 MWAC grid-connected ground-mounted solar PV power plant.
Strong Financial Performance and Market Position
The company's recent market debut has been met with positive investor response, with shares listing at ₹225 in early October, representing a 4% premium over the IPO price of ₹219. This successful entry into Dalal Street has set a promising tone for the company's public market journey.
Pace Digitek's September-ending quarter results demonstrated impressive financial health, with consolidated revenue jumping 45% quarter-on-quarter to reach ₹533 crore. Net profit showed substantial growth as well, climbing 24% to ₹68 crore compared to the preceding June quarter's performance.
The company has outlined ambitious revenue projections for the coming years, targeting ₹2,600–₹2,700 crore for FY 2025-26 with 12% PAT margins. This growth trajectory is expected to scale further to ₹3,100–₹3,200 crore by FY 2027, maintaining healthy 11% margins. Management attributes these optimistic targets to strong order visibility, favorable energy transition trends, and ongoing telecom infrastructure consolidation.
During the second quarter alone, the company secured new orders worth ₹1,345.18 crore, primarily driven by significant wins in the BESS and telecom operations and maintenance segments. This robust order intake has elevated the company's total order book to an impressive ₹3,266 crore, substantially strengthening its growth outlook.
Notably, Pace Digitek's current order book value exceeds its market capitalization of approximately ₹2,000 crore, indicating strong fundamental value and potential for future growth. This discrepancy between order book size and market valuation often signals undervaluation to market analysts and investors.
