Pace Digitek Wins Rs 179.4 Crore BESS Order

Pace Digitek Limited has received a Letter of Intent (LoI) worth Rs 179.4 crore from BSES Rajdhani Power Limited for battery energy storage systems with a combined capacity of 57.5 MW and 115 MWh. The Bengaluru based energy storage and telecom infrastructure company disclosed the order to the stock exchanges on October 8, 2026.

The contract covers the design, supply, installation, testing, commissioning, operation and maintenance of battery energy storage systems at four grid stations in Delhi. Commissioning is due within 28 weeks of the effective date of the agreement, giving the company a defined window to complete the project.

Pace Digitek's latest order adds to its order book of more than Rs 11,000 crore, as cited in its October 6 investor presentation. The contract also expands its work with power distribution utilities and includes ongoing operational responsibilities beyond the initial installation.

Details of the BSES Rajdhani order

The order covers battery energy storage systems with a combined rated power capacity of 57.5 MW and energy storage capacity of 115 MWh. The systems will be installed at four BSES Rajdhani grid station locations and operated on a demand basis.

The scope covers the full project lifecycle. Pace Digitek will handle equipment supply and installation, followed by testing and commissioning. The company will also operate and maintain the systems, extending its responsibilities beyond the initial delivery.

Particulars	Details
Customer	BSES Rajdhani Power Limited
Order value	Rs 179.4 crore
Project capacity	57.5 MW / 115 MWh
Installation locations	Four grid stations in Delhi
Project scope	Design, supply, installation, commissioning, operation and maintenance
Commissioning deadline	Within 28 weeks of the agreement's effective date
Order category	Domestic contract
Announcement date	October 8, 2026

The company said the contract is not a related party transaction. It also disclosed that its promoters and group companies have no interest in BSES Rajdhani.

The Letter of Intent sets out the project award, but the final BESS agreement remains relevant because the commissioning timeline runs from its effective date. The schedule and execution of the contract will therefore determine when the project reaches commissioning.

How significant is the order for Pace Digitek?

The Rs 179.4 crore contract is smaller than Pace Digitek's existing order book, but it adds to the company's work in energy storage. Based on the figures provided, the order is equivalent to about 1.6% of its order book of more than Rs 11,000 crore. It is also equivalent to roughly 6.8% of the company's consolidated revenue of Rs 2,641 crore in FY26.

The order's operating component is worth watching. Pace Digitek will remain responsible for operating and maintaining the storage systems after installation. Such work requires the company to deliver the equipment and meet its continuing contractual obligations once the systems are commissioned.

The company has also reported that its first 2.5 GWh battery manufacturing line is operating at around 85% utilisation, with a rejection rate of about 0.5%. The 115 MWh capacity covered by the BSES Rajdhani contract is relatively small compared with that manufacturing capacity. However, manufacturing capacity alone does not establish the project's profitability or its contribution to future revenue.

Execution and payment collection will also matter. Pace Digitek reported consolidated finance costs of Rs 28.34 crore in Q1 FY27, compared with Rs 9.72 crore in Q1 FY26. Timely project delivery and collection of contractual payments will be relevant as the company handles its growing order book.

Pace Digitek's financial performance

Pace Digitek reported higher year on year revenue and net profit in Q1 FY27, although both figures fell compared with the previous quarter. Consolidated revenue from operations increased 51.29% year on year to Rs 555.36 crore. The comparison with Q4 FY26 was weaker, partly against a quarter that included a large amount of project billing.

Financial metric	Q1 FY27	Comparison
Revenue from operations	Rs 555.36 crore	Up 51.29% year on year
Revenue in Q1 FY26	Rs 367.08 crore	Previous year quarter
Revenue in Q4 FY26	Rs 1,096.78 crore	Down 49.36% quarter on quarter
Net profit	Rs 62.51 crore	Up 14.27% year on year
Net profit in Q1 FY26	Rs 54.70 crore	Previous year quarter
Net profit in Q4 FY26	Rs 105.92 crore	Down 40.99% quarter on quarter
Basic earnings per share	Rs 2.84	Down 6.27% year on year

The company's basic earnings per share fell from Rs 3.03 in Q1 FY26 to Rs 2.84 in Q1 FY27, despite higher net profit. The supplied figures attribute this change to an increase in the paid up equity capital following the IPO. Paid up equity rose from Rs 35.69 crore to Rs 43.17 crore.

Energy accounted for 83.8% of Pace Digitek's segment revenue in Q1 FY27, before inter segment eliminations. Telecom contributed 12.9%, while other activities accounted for the remaining 3.3%. This revenue mix shows the weight of the energy business in the company's reported operations.

Why battery storage matters for power utilities

Battery energy storage systems allow electricity to be stored and used when demand rises or supply conditions change. This can help power distribution companies manage differences between when electricity is generated and when consumers need it.

Solar generation is generally strongest during daylight hours, while demand in urban areas can rise in the evening. Grid connected batteries can store electricity during periods of greater supply and discharge it when required. Depending on the project's operating arrangements, storage may help utilities manage peak demand and reduce reliance on costly short term electricity purchases.

For distribution utilities in a dense market such as Delhi, battery storage may also help manage pressure on existing networks. The BSES Rajdhani project gives Pace Digitek a contract involving storage equipment and its subsequent operation and maintenance.

The company's investor presentation puts its battery storage tender pipeline at about 20 GWh. That figure indicates the scale of opportunities it is tracking, but a tender pipeline should not be treated as confirmed orders. The value and timing of future contracts will depend on tender outcomes and project awards.

The sector also faces execution risks. Projects must meet commissioning schedules, while pricing pressure and dependence on imported battery cells can affect delivery and costs. The financial outcome of an individual contract will depend on its terms, expenses and execution.

Market analysis and stock movement

Pace Digitek shares were quoted at Rs 165.05, up 2.06%, on Friday in the supplied market update. The stock opened at Rs 168.00, reached an intraday high of Rs 171.56 and touched a low of Rs 163.72. The company's market capitalisation was reported at Rs 3,562.63 crore.

The order announcement gives investors another contract to assess alongside the company's financial performance and manufacturing activity. However, the available information does not establish that the order alone caused the share price movement.

Pace Digitek's earlier BSNL network project order provides context for its work in telecom infrastructure. The new BSES Rajdhani contract adds to its presence in energy storage, a business that accounted for most of its segment revenue in Q1 FY27.

What investors should watch

The next developments will help establish how the contract translates into business performance. Relevant factors include:

• The effective date of the BESS agreement and the 28 week commissioning schedule.
• Progress in installing and commissioning the 115 MWh storage systems.
• Revenue recognition and payment collection from the contract.
• Changes in the order book and conversion of the company's tender pipeline into confirmed contracts.
• Quarterly revenue, profit and finance costs as projects progress.

Investors can also track the utilisation and rejection rate of the company's manufacturing line, alongside the share of revenue contributed by its energy business. These indicators may help explain how production and project execution develop as the company takes on further work.

About Pace Digitek

Pace Digitek Limited is a Bengaluru based energy storage and telecom infrastructure company that began operations in 2007 with telecom power systems. It now manufactures battery energy storage systems and undertakes engineering, procurement and construction projects, along with build, own and operate models. The company also works on telecom infrastructure, including BSNL's 4G saturation project.

Pace Digitek listed on the NSE and BSE on October 6, 2025. Its BSNL infrastructure contract is another example of its telecom project activity, while the BSES Rajdhani award adds a battery storage contract with ongoing operating responsibilities.

The immediate milestone for the latest order is the effective date of the BESS agreement. That date will determine the start of the 28 week commissioning window and provide a clearer timeline for tracking project execution.

Frequently asked questions

What order has Pace Digitek received from BSES Rajdhani?

Pace Digitek has received a Letter of Intent worth Rs 179.4 crore from BSES Rajdhani Power Limited for battery energy storage systems. The project covers 57.5 MW of power capacity and 115 MWh of storage capacity across four grid stations in Delhi.

What is the capacity of the Pace Digitek battery storage project?

The BSES Rajdhani project has a combined capacity of 57.5 MW and 115 MWh. Pace Digitek will design, supply, install, test, commission, operate and maintain the systems.

When must Pace Digitek complete the BESS project?

Pace Digitek must commission the battery storage systems within 28 weeks of the effective date of the BESS agreement. The effective date is therefore important for determining the project deadline.

How much revenue and profit did Pace Digitek report in Q1 FY27?

Pace Digitek reported consolidated revenue from operations of Rs 555.36 crore and net profit of Rs 62.51 crore in Q1 FY27. Revenue rose 51.29% year on year, while net profit increased 14.27%.

What is Pace Digitek's battery storage tender pipeline?

Pace Digitek's October 2026 investor presentation puts its battery storage tender pipeline at about 20 GWh. This represents tenders being tracked by the company and should not be treated as confirmed orders.

Why is the BSES Rajdhani order relevant to Pace Digitek?

The Rs 179.4 crore order adds to Pace Digitek's energy storage contracts and includes operation and maintenance responsibilities. Its execution will depend on the agreement's effective date, the commissioning schedule and the company's ability to complete the project and collect payments.