Synopsis: This small-cap infrastructure company has guided for FY27 revenue of Rs.3,200–3,400 crore, implying growth of up to 29 percent, backed by an executable order book of Rs.11,338 crore. The company is also expanding its BESS manufacturing capacity from 2.5 GWh to 10 GWh to capitalize on growing demand in the energy storage market.
India’s energy transition is creating a massive opportunity for infrastructure companies that can combine project execution with manufacturing capabilities. As investments accelerate across battery energy storage, renewable energy integration, telecom infrastructure, and digital connectivity, companies with strong order visibility are emerging as key beneficiaries. One such small-cap player has entered FY27 with a record order backlog and ambitious expansion plans, positioning itself to capitalize on multiple long-term growth themes while targeting robust revenue growth over the next two years.
Strong Order Book Provides Revenue Visibility
Pace Digitek Ltd. entered FY27 with an executable order book of Rs.11,338 crore, providing strong visibility for future growth. Of the total order book, Rs. 8,854 crore, or nearly 78 percent, comes from the energy business, while the remaining Rs. 2,484 crore is from Telecom and ICT projects.
The diversified order book includes BESS projects, telecom infrastructure, optical fiber deployment, railway modernization, and digital infrastructure projects, supporting growth across multiple business segments.
Management Guides for Strong Revenue Growth
Management has guided for FY27 revenue of Rs.3,200–3,400 crore compared to FY26 revenue of Rs.2,641 crore, implying potential growth of up to 29 percent. For FY28, the company expects revenue to further increase to Rs.4,000–4,200 crore, reflecting confidence in its execution capabilities and strong demand outlook. The sizeable order book and ongoing project execution are expected to support this growth trajectory over the next few years.
Energy Segment Remains the Key Growth Driver
A major growth driver remains the energy segment, where demand is rising rapidly due to renewable energy integration, utility-scale storage projects, and grid stability requirements.
The energy segment accounts for Rs.8,854 crore of the total order book and continues to benefit from increasing investments in renewable energy infrastructure. As renewable power capacity expands across the country, the need for reliable energy storage solutions is expected to rise significantly. Management believes the domestic BESS market is still at an early stage and offers substantial long-term growth opportunities.
BESS Capacity Expansion to 10 GWh
To capitalise on this opportunity, Pace Digitek Ltd is undertaking a significant expansion of its BESS manufacturing capacity. It currently operates a 2.5 GWh facility and plans to increase capacity to 5 GWh by July 2026.
Additionally, another 5 GWh production line is expected to become operational by October 2026, taking the total manufacturing capacity to 10 GWh. This represents a fourfold increase from current levels and positions the company to benefit from the rapidly growing energy storage market. Management has accelerated the expansion plans due to strong demand visibility and a healthy order pipeline.
Telecom and ICT Business Adds Diversification
The Telecom and ICT segment contributes an order book of Rs.2,484 crore and continues to provide growth support through projects from BSNL, RailTel, optical fiber deployment programs, railway modernization initiatives, and Railway Kavach infrastructure projects. These projects are expected to complement the company’s expanding energy business and provide additional revenue opportunities in the coming years.
Outlook
With a record order book of Rs.11,338 crore, a planned fourfold increase in BESS manufacturing capacity, and management guidance indicating revenue of Rs.3,200–3,400 crore in FY27 and Rs.4,000–4,200 crore in FY28, the company appears well-positioned to benefit from India’s increasing investments in energy storage, renewable energy integration, telecom infrastructure, and digital connectivity projects.
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