Key Financial Figures (Consolidated)

Q4 FY2026 Performance:

  • Revenue from Operations: ₹1,097 crores, a 60.5% year-on-year increase from ₹683 crores in Q4 FY2025.
  • Gross Profit: ₹249 crores, up from ₹130 crores in Q4 FY2025.
  • EBITDA: ₹163 crores, significantly higher than ₹76 crores in Q4 FY2025.

Full Year FY2026 Performance:

  • Revenue from Operations: ₹2,641 crores, an 8.3% year-on-year increase from ₹2,439 crores in FY2025.
  • EBITDA: ₹455 crores, compared to ₹482 crores in the previous year.
  • Finance Cost: ₹60 crores, reduced from ₹115 crores in FY2025.
  • Profit Before Tax (PBT): ₹430 crores, up from ₹384 crores in FY2025.
  • Profit After Tax (PAT): ₹307 crores, a 10.1% YoY growth from ₹279 crores. PAT margin increased to 11.4% from 11.3%.
  • Employee Expenses: ₹96 crores, up from ₹67 crores, driven by business diversification and manufacturing commencement.

Balance Sheet Position as of March 31, 2026:

  • Total Equity: Increased to ₹2,252 crores, supported by IPO proceeds.
  • Total Debt: ₹961 crores, up from ₹161 crores, reflecting investment in BESS manufacturing and energy assets.
  • Debt-to-Equity Ratio: 0.43x.
  • Cash and Bank Balances: ₹769 crores.
  • Net Debt-to-Equity Ratio: 0.09x.
  • Inventory: ₹540 crores, a strategic increase to mitigate rising lithium-ion cell prices and forex effects.
  • Trade Receivables: ₹2,442 crores (Current: ₹1,565 crores; Non-Current: ₹295 crores reclassified due to a 5-year payment schedule with BSNL). A portion (₹900 crores) is milestone-based and will be billed over 3-5 years. ~5% is retention money.
  • Return on Equity: 13.6%.
  • Return on Capital Employed: 14.3%.

Operational and Strategic Highlights

Business Mix:

  • Revenue was driven by a mix of telecom and energy businesses. Telecom & ICT contributed 55% to overall revenue, while Energy contributed 45%.
  • The energy business is a new diversification, transitioning the company from a telecom infrastructure firm to an integrated platform across telecom and energy infrastructure, including Battery Energy Storage Systems (BESS).

BESS Manufacturing & Expansion:

  • Current Capacity: Operationalized a 2.5 GWh BESS manufacturing facility in FY26 with ~80% utilization, delivering 178 BESS containers.
  • Capacity Expansion: Plans advanced due to strong demand. Manufacturing capacity is being expanded in phases:
  • To 5 GWh: Equipment received, installation underway. Expected to be operational from July 2026 (delayed by two months due to shipping disruptions from the West Asia conflict).
  • To 10 GWh: Infrastructure and plant construction completed. Orders placed for an additional 5 GWh production line. The full 10 GWh capacity is expected to be operational by October 2026.
  • Backward Integration: The company is commencing in-house container fabrication from July 2026 to overcome logistical challenges and reduce costs, expected to improve operating efficiencies by 4-5%. Cell manufacturing is also "very much on the cards" with an announcement expected soon.

Order Book:

  • Total Executable Order Book (as of May 25, 2026): ₹11,338 crores.
  • Energy Sector: ₹8,854 crores (78.1%), comprising 5.32 GWh of projects. This includes 2.72 GWh of Build-Own-Operate (BOO) projects and the remainder as EPC.
  • Telecom & ICT Sector: ₹2,484 crores (21.9%), including new orders from BSNL, Railways, and RailTel for projects like Railway Kavach and digital infrastructure.

Project Execution and Economics:

  • BESS Projects Executed in FY26: 480 MWh of utility-scale BESS capacity.
  • Project Timelines: Standalone BESS EPC takes 1.5-2 years; Solar+BESS projects take 2-3 years.
  • BOO Project Economics (Example - MSEDCL Project): Net project cost is ~₹93 lakhs/MWh (after GST and VGF of ₹27 lakhs/MWh). Government pays ₹2,19,000 per MW per month. Project-level IRR is 12-13%. The parent company (Pace Digitek) acts as the EPC contractor for subsidiary SPVs on an arm's length basis.

Strategic Focus and Outlook:

  • Focus Areas: Scaling up BESS in the Commercial & Industrial (C&I) segment, increasing contribution from product-led manufacturing revenues, and improving operational leverage.
  • Market Opportunities: Strong demand visibility from renewable energy integration, grid stability, railway modernization, and new state BESS policies (e.g., Maharashtra, Gujarat, Rajasthan).
  • International Expansion: An exclusive OEM partnership with NEC XON for African markets, with an expectation of 300-500 MWh of orders starting in FY27.

Forward-Looking Guidance

Management provided the following revenue guidance based on current execution visibility and order book:

  • FY2027 Revenue: ₹3,200 to ₹3,400 crores.
  • FY2028 Revenue: ₹4,000 to ₹4,200 crores.
  • FY2027 PAT Margin: Expected to be in the range of 10-11% due to the increasing mix of energy business, which has lower margins than telecom.
  • BOO Contribution: Expected to contribute 20-25% (approx. ₹800-1,000 crores) to FY27 revenue and another ₹1,000 crores in FY28.
  • Capacity Utilization: The new 10 GWh capacity is expected to reach ~80% utilization by the end of FY27.
  • Cash Flow: Cash flow from operations was negative in FY26 due to inventory build-up and high receivables but is expected to normalize by September 2026 and turn positive in FY28.

Management Commentary

Key commentary from Chairman & MD Mr. Venugopal Rao and CFO Mr. Rajavendhan P emphasized a landmark year post-IPO, a leading position in the BESS sector, a confident long-term growth trajectory, and a strategy to maintain a competitive edge through integrated capabilities, scale, and field execution experience.