PACEDIGITK Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹644 Cr
verified against source
Revenue YoY
13.5%
reported change
EBITDA
₹117 Cr
latest reported figure
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Pace Digitek delivered Q3 FY26 revenue of 644 crore (+13.5% YoY) with PAT of 78 crore (+11.3% YoY) and PAT margin of 12.2%. EBITDA margin contracted to 18.3% from 21% YoY due to project mix shift favoring lower-margin energy projects over high-margin telecom. The company announced a robust order book of 8,450 crore (energy: 6,000 crore + telecom: 2,450 crore) with BESS-specific orders at 600+ crore, targeting 10,000 crore by March 2026. Manufacturing capacity expansion from 2.5 GWh to 10 GWh by September 2026 is underway, with backward integration into container fabrication adding another competitive moat. FY27 guidance of 3,200 crore revenue growth remains intact. Key risks include margin pressure from aggressive competitor bidding in BESS tenders, potential interest rate sensitivity on project IRRs (9% cost of borrowing vs 10-11.5% project IRR), and execution risks on the ambitious 10 GWh capacity buildout within 6 months.
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Guidance to track
- Management confirms FY27 guidance intact with estimated 3,200 crore revenue addition driven by strong order book execution across energy and telecom segments.
- Current BESS order book of 600+ crore plus 4,000+ crore L1 pipeline expected to convert, targeting 10,000 crore total BESS order book by end of FY26.
- Manufacturing facility scaling from 2.5 GWh to 5 GWh by March 2026 and doubling to 10 GWh by September 2026, requiring 80-100 crore capex for expansion.
- With 6 GWh order book already in hand and capacity at 5 GWh (rising to 10 GWh), targeting 7.5 GWh production in FY27 with 80% already secured.
Risks flagged
- Competitors are bidding aggressively on BESS projects, creating margin pressure. Management expects price stabilization from April 2026 onwards as competitors realize execution difficulties. Q3 EBITDA margin already contracted 270 bps YoY to 18.3%.
- BESS project IRR is 10-11.5%, which is thin and vulnerable to interest rate movements. Cost of borrowing at 9%+ means limited buffer. Management acknowledged this as a concern during Q&A.
- Analyst raised concern about profit eliminations between standalone and consolidated financials due to intra-group BESS sales to SPVs. Management acknowledged this issue and admitted it will multiply as BO business scales, suggesting they are exploring alternative structures (potential demerger of Trans Green X Energy).
- Company plans to scale from 5 GWh to 10 GWh in just 6 months (by September 2026) while simultaneously ramping up container fabrication facility. Equipment shipping delays or commissioning issues could impact FY27 production targets.
Key quotes
- We are proud to say that we have 3.3 GW of developer project plus the 1 GW of EPC project... by 2030, 236 GWh is required for the country. Out of which 25+ GWh is already awarded and we have 3.3 plus 1 is 4.3 GWh.
- The BESS project IRR will be anywhere between 10 to 11.5%. The project IRR is low but if you add the product margin and EPC margin which we earn internally, the equity IR comes to about 19-20%.
- We are the largest BESS manufacturer from cell to container in the country currently. Some people are doing pack to container but cell to pack is the critical thing. Others are not doing it today. We want to maintain this lead by adding capacity to 10 GWh by September.
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