Pace Digitek – Summary Company Report (based on publicly available information up to Q1 FY26 / June 2025 and IPO/listing in Oct 2025)

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1. Basic Overview

- Name: Pace Digitek Limited (PDL)

- Sector: Telecom infrastructure, energy storage and power management, ICT solutions.

- Founded: 2007. (economictimes.indiatimes.com)

- Business profile: Multi-disciplinary infrastructure solutions provider:

- Manufacturing of telecom power systems and passive components.

- EPC and O&M services for telecom towers and optical fibre cable (OFC) networks.

- Renewable and energy storage solutions, including lithium-ion batteries and Battery Energy Storage Systems (BESS), solarisation of telecom towers, and rural electrification projects. (pacedigitek.com)

- Geographic presence: India as the core market, with international operations in Myanmar, Africa and select Asian markets (e.g., Bangladesh, Sri Lanka, Philippines). (pacedigitek.com)

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2. Listing & IPO Details

- Regulatory approval: Received SEBI nod to launch an IPO aimed up to ~₹900 crore. (m.economictimes.com)

- IPO period: 26 September 2025 to 30 September 2025.

- Price band: ₹208–₹219 per share.

- Issue size: Fresh issue of equity aggregating to ~₹819–819.15 crore (no OFS). (economictimes.indiatimes.com)

- Subscription: Overall 1.59x;

- QIB: 1.60x, NII: 2.90x, Retail: 1.03x. (business-standard.com)

- Listing date: 6 October 2025 on BSE and NSE.

- Listing performance:

- IPO price: ₹219.

- Listed at ₹226.85 on BSE (3.58% premium) and ₹225 on NSE (2.74% premium). (m.economictimes.com)

- Post‑issue valuation at IPO: At upper band, implied post‑issue market cap ~₹4,700–4,730 crore and P/E ~16.9x on FY25 earnings. (economictimes.indiatimes.com)

- Use of IPO proceeds (illustrative allocation):

- ~₹630 crore capex via subsidiary Pace Renewable Energies for BESS deployment under an MSEDCL project.

- Balance for capacity expansion, technology upgrades and general corporate purposes. (economictimes.indiatimes.com)

(Current market price and latest post–June 2025 financials are not accessible in real time here; refer to NSE/BSE quotes and company filings for updates as of January 2026.)

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3. Business Segments & Operating Model

1. Telecom Infrastructure

- Manufacture of DC power systems, hybrid power systems, lithium batteries, remote monitoring systems, inverters, and other passive components for telecom sites. (pacedigitek.com)

- EPC for telecom towers: tower erection, OFC laying, equipment installation and commissioning.

- Long-term O&M for towers and optical fibre networks.

2. Energy & Renewable Solutions

- Solarisation of telecom towers under BOO/PPP models.

- Manufacturing of lithium-ion batteries and advanced BESS solutions, largely through group entities (Lineage Power and Pace Renewable Energies). (economictimes.indiatimes.com)

- Rural electrification and solar EPC contracts.

3. ICT & Other Infrastructure

- Turnkey solutions integrating telecom, power and ICT for operators and government / PSU projects, including large 4G/last-mile connectivity projects. (economictimes.indiatimes.com)

4. Subsidiaries (illustrative)

- Lineage Power: Power management systems and DC power solutions.

- Pace Renewable Energies: Renewable projects and solarisation of telecom towers, including BESS roll-outs. (business-standard.com)

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4. Financial Performance Snapshot

(All figures consolidated, as reported; rounded.)

Full Year FY22–FY25

- Revenue growth:

- FY22: ~₹405 crore.

- FY25: ~₹2,438–2,462 crore (about 6x in three years; CAGR ~>190% in net profit per ET). (economictimes.indiatimes.com)

- Profitability:

- FY25 net profit: ~₹267–279 crore (vs. ~₹230 crore in FY24).

- FY25 EBITDA margin: ~19.8–20.7%; PAT margin: ~11.4%.

- ROE around 23%; debt‑equity ~0.13 post deleveraging. (economictimes.indiatimes.com)

These numbers reflect very rapid scale‑up with healthy margins and strengthening balance sheet in the immediate pre‑IPO period.

Order Book

- Order backlog reported at about ₹7,600+ crore as of FY25, covering:

- Telecom tower projects and OFC deployments.

- Rural electrification and solar power.

- BESS installations, including the large 4G Saturation Project (approx. ₹7,568 crore across ~9,595 remote village sites). (economictimes.indiatimes.com)

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5. Latest Reported Quarterly Performance (Q1 FY26 – June 2025)

- Period: Quarter ended 30 June 2025 (Q1 FY26).

- Revenue from operations: ~₹367.1 crore, +7.3% YoY (vs. ₹342.2 crore in Q1 FY25).

- EBITDA (before other income): ~₹80.1 crore, –17.6% YoY (vs. ₹97.1 crore).

- Net profit: ~₹54.7 crore, +10.3% YoY (vs. ₹49.6 crore). (business-standard.com)

- Segment performance (Q1 FY26):

- Telecom revenue ~₹342.1 crore, profit ~₹79 crore.

- Energy revenue ~₹2.5 crore, profit ~₹2.3 crore. (business-standard.com)

Notable operational development in Q1 FY26

- SECI BESS order:

- Secured ~₹1,159 crore order from Solar Energy Corporation of India (SECI) for a 600 MW BESS project, including 10-year service & maintenance.

- Scope: supply of BESS DC blocks, PCS, BMS/EMS, integration, testing and commissioning. (business-standard.com)

Management has also approved setting up a new wholly owned subsidiary (details pending regulatory approvals), indicating further expansion and/or reorganisation of business lines. (business-standard.com)

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6. Structural Positives (Illustrative, not a recommendation)

- Strong positioning in telecom power + infra:

Integrated presence across manufacturing, EPC and O&M in telecom and fibre networks, which can provide annuity‑like revenue in O&M plus lumpy project revenues. (m.economictimes.com)

- Emerging BESS and renewable platform:

Focus on lithium‑ion batteries and grid-scale BESS aligns with India’s push for storage and renewable integration, potentially opening higher‑margin opportunities (e.g., SECI and MSEDCL projects). (economictimes.indiatimes.com)

- Healthy order book and visibility:

Multi‑year order book (>₹7,600 crore) provides medium‑term revenue visibility, especially from large government/PSU connectivity and energy projects. (economictimes.indiatimes.com)

- Improving financial metrics pre‑IPO:

Rapid revenue and profit growth with improving leverage and solid ROE indicates efficient capital usage in the pre‑listing phase. (m.economictimes.com)

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7. Key Risks & Considerations (Illustrative, based on disclosures)

- Client concentration in telecom:

A very high share of revenue historically comes from a limited number of large telecom operators and related entities, which exposes the company to concentration and counterparty risk. (m.economictimes.com)

- Project and execution risk:

Large turnkey telecom and BESS projects carry risks of delays, cost overruns and working‑capital stretch, particularly when linked to government/PSU contracts.

- Margin volatility in renewables/BESS:

While BESS and renewable segments are growth drivers, margins can be volatile due to technology costs, competitive bidding and evolving regulatory frameworks. (m.economictimes.com)

- Policy and technology risk:

Business is sensitive to telecom capex cycles, spectrum policies, renewable incentives, and fast‑changing storage/5G technologies.

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8. How this report can be used (example)

As an example, an investor or analyst might use the above summary to:

- Track whether order book conversion (revenue & cash flows) is in line with FY25–Q1 FY26 trends.

- Compare current trading multiples (P/E, EV/EBITDA) with peers in telecom infra and BESS once updated market prices are checked on NSE/BSE.

- Revisit thesis if client concentration reduces and BESS/renewables ramp up towards the management’s targets.

For more granular data (segment‑wise financials by quarter, detailed risk factors, etc.), please refer to the company’s DRHP/RHP and latest quarterly results in the Investor Relations section of the company website and stock exchange filings.

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