Pace Digitek doubles battery capacity target to 10 GWh by 2026
The company delivered 178 BESS containers last year and now targets ₹3,200-3,400 crore in revenue for FY27, even as margins face pressure from a changing product mix.
— 1 earlier story on Pace Digitek Ltd. →What's new
- Manufacturing capacity target doubled to 10 GWh by October 2026.
- FY27 revenue guidance set at ₹3,200-3,400 crore.
- Exclusive partnership with NEC Xon targets 300-500 MWh of African orders.
Why this matters
Pace Digitek is aggressively scaling its energy storage footprint, but the margin compression guidance signals that growth is coming at the cost of profitability. With trade receivables ballooning to ₹2,442 crore, the company's ability to convert its ₹11,337 crore order book into actual cash flow remains the primary test.
What we're watching
- Normalization of trade receivables by September 2026.
- Execution of the NEC Xon partnership in the African market.
- Actual PAT margins against the 10-11% guidance range.
The full read
Pace Digitek is moving faster on its energy storage ambitions, pulling forward its 10 GWh manufacturing capacity target to October 2026. This follows a year where the company shipped 178 BESS containers and posted ₹2,641 crore in revenue.
Profitability is lagging.
Management is tempering expectations for FY27, guiding for a PAT margin of 10-11% compared to the 11.4% recorded in FY26, as the revenue mix shifts toward lower-margin energy projects. While the company boasts a healthy order book of ₹11,337 crore, it must contend with a significant buildup in trade receivables, which hit ₹2,442 crore. Management claims these will normalize by September 2026 as telecom collections restart. The company is now looking abroad, signing an exclusive deal with NEC Xon to chase 300-500 MWh of orders in Africa. Growth is clear, but the cash conversion and margin discipline are the real metrics to watch.
Questions answered
- What is the new manufacturing capacity target?
- Pace Digitek plans to reach 10 GWh of battery energy storage capacity by October 2026, doubling its previous 5 GWh goal.
- How did the company perform in FY26?
- The company reported a full-year net profit of ₹307 crore on revenues of ₹2,641 crore, delivering 178 BESS containers during the year.
- Why is the company guiding for lower profit margins in FY27?
- Management expects PAT margins to dip to 10-11% from the 11.4% achieved in FY26 due to a higher share of revenue coming from the lower-margin energy segment.
- What is the status of the company's trade receivables?
- Trade receivables reached ₹2,442 crore. The company expects these to normalize by September 2026 as milestone-based collections from its telecom business resume.
- What is the significance of the NEC Xon partnership?
- The exclusive partnership aims to secure 300-500 MWh of BESS orders in Africa during the current financial year.
Story so far
All notes on PACEDIGITK →- 26 May 2026 · 1:05 PM IST Pace Digitek doubles battery capacity target to 10 GWh by 2026
- today Pace Digitek's consolidated profit jumps 88% as standalone business slips