₹6,460 Cr Order Book: Is Pace Digitek Quietly Building the Next Big Energy Play?

Synopsis: Telecom infra company  secured Rs.6,460 crore orders in FY26, led by energy projects. A balanced mix of BOO, EPC, and telecom contracts provides strong execution visibility, recurring cash flows, and growth stability.  

The shares of this small cap company majorly engaged in providing solutions for telecom infra and solar industries which involves  manufacturing, installation and commissioning of DC Power systems and many more were in focus as the company secured Rs. 6460 Crores worth orders in a year. 

With the market capitalization of Rs. 3,723 Crores, the shares of Pace Digitek Ltd were trading at around Rs. 172 per share which is 26 percent discount from its 52 weeks high of 232 per share and is trading at a P/E of 14.9 where as industry P/E stands at 16.8

Energy-Led Order Inflow:

Pace Digitek reported total order inflows of  Rs. 6,460 crore in FY26, with the energy segment contributing  Rs. 5,815 crore, significantly outweighing the telecom sector. This highlights a clear tilt toward energy-driven growth, supported by opportunities in battery energy storage systems and renewable-linked projects.

Diversified Order Book with Strong Revenue Visibility Across Timelines:

The energy order book remains well spread across contract types, with EPC contributing  Rs. 3,048 crore (52 percent ), BOO at  Rs. 2,455 crore (42 percent ), and supply contracts at  Rs. 311 crore (~6 percent ). This balanced mix supports a combination of execution-led revenue, steady annuity income, and near-term inflows. Management indicated that around 40 percent  of the energy order book is expected to be executed in FY27, covering both EPC and asset-owned projects. 

For the non-BOO segment, the CFO highlighted that ~ Rs. 6,300 crore is likely to contribute to the topline between Q4 FY27 and H1 FY28. While EPC and supply contracts provide near-term revenue visibility, BOO projects follow a different trajectory executed over roughly two years, with revenue and collections flowing steadily as annuity income over the next 12 years.

Capacity Expansion Backed by Strong Order Visibility: 

The company is scaling its cell-to-container capacity to 5 GWh by March–April 2026, with equipment already in transit and commissioning expected shortly after arrival. It plans to further expand to 10 GWh by September 2026 through a new facility under construction, aiming to be among the first in India at this scale. Around 80 percent of the capacity is already backed by orders, providing strong demand visibility. With expansion coming mid-year, FY27 output is expected at ~7.5 GWh, supported by additional production in the second half.

Strong Client Base:

The company secured projects from key central and state agencies such as KPTCL, KREDL, NTPC, SECI, and MAHAGENCO, along with private sector customers, strengthening its order quality and execution credibility.

Telecom Segment Stability:

Telecom contributed  Rs. 645 crore through O&M, equipment supply, and infrastructure projects for clients including BSNL, Tata Teleservices, RailTel, and Indian Railways. This segment continues to provide stable execution and recurring revenue streams.

Visibility & Growth Outlook:

The diversified order book across energy and telecom segments provides multi-year execution visibility. The mix of BOO, EPC, and supply contracts supports both long-term revenue generation and near-term execution, positioning the company for sustained growth. 

Financials: 

Revenue from operations has increased on a quarterly  basis from Rs. 533 Crores to Rs. 644 Crores , up 20.8 percent. Operating profit has increased from Rs. 94 Crores to Rs. 118 Crores, up 25.5 percent and net profit has increased from Rs. 68 Crores to Rs. 79 Crores, up 16 percent 

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