Pace Digitek Ltd Q4 FY26 Earnings Analysis

- Energy order book expected to increase from Rs. 6,000 crores to Rs. 10,000 crores by March 2026. - Projected consolidated revenue from energy order book about Rs. 3,200 crores in FY27, with additional Rs. 2,200 crores from BOO asset creation. - Manufacturing capacity for BESS increasing from 2.5 GWh to 5 GWh by March 2026, further expanding to 10 GWh by September 2026. - Expected effective production capacity for FY27 around 7.5 GWh, with strong order backlog covering ~80% capacity. - Order pipeline includes recent L1 positions likely to convert into confirmed orders soon. - Telecom order book remains robust alongside energy, contributing to top-line growth. - Revenue realization from the existing order book expected primarily between Q4 FY26 and H1 FY28. - Growth driven by energy transition, BESS market expansion, and backward integration enhancing product margins and supply control.

- EBITDA margins are expected to stabilize around 13% to 15%, with project margins at 8% to 10%. (Page 20) - Energy business, especially BESS, is expected to contribute meaningfully to overall performance going forward. (Page 6) - FY27 revenue estimate from order book is around Rs. 3,200 crores consolidated, including telecom and energy segments. (Page 8) - The company aims to grow its BESS order book to Rs. 10,000 crores by March 2026, with approx. 40% executable in FY27. (Page 8) - Manufacturing capacity for BESS expanding from 5 GWh to 10 GWh by September 2026, supporting volume and revenue growth. (Pages 5-6) - Internal efficiencies and backward integration expected to improve product margins from 13% up to 15% plus additional gains from container fabrication. (Page 13) - The asset-owned BOO projects support steady annuity income over 10-12 years, stabilizing long-term cash flows. (Page 17) - Profit after tax showed 11.3% YoY growth in Q3 FY2026 indicating positive momentum in earnings. (Page 6)

- Capacity expansion from 2.5 GWh to 5 GWh expected by March 2026 is already in process. - Further doubling capacity from 5 GWh to 10 GWh planned by September 2026, involving capital outlay of Rs. 80-100 crore for plant, machinery, and structures (land already owned). - Additional Rs. 30-40 crore Capex on container fabrication facility excluding land. - Capex for FY28 and FY29 yet to be finalized; plans will be announced in due course. - The Capex for near term will be funded primarily by internal accruals (including telecom project accruals). - Rs. 3,250 crore BOO model order book projects funded by IPO proceeds (~Rs. 750 crore equity infusion) and balance 70-75% debt from financial institutions. - Exploring structuring BOO projects through HoldCo (TransGreenX Energy) for better leverage and possible future divestment. This summarizes current and near-future strategic capital investments by Pace Digitek.

- For the three BOO projects totaling Rs. 3,250 crores Capex, equity has been funded through IPO proceeds (~Rs. 750 crores) and internal accruals; balance 70-75% planned to be financed via debt from financial institutions (Page 12). - No further equity dilution is expected at Pace Digitek level for these current BOO projects (Page 14). - For future projects under TransGreenX Energy, the company is working on raising money at the HoldCo/platform (TGX) level rather than individual SPV level for better leverage (Page 14). - TransGreenX Energy is currently 100% owned by Pace Digitek; potential for partial hiving off or demerger at an appropriate time to raise funds or optimize valuation (Page 14). - Capex for capacity expansion (up to 10 GWh) around Rs. 80-100 crores to be funded by internal accruals (Page 16).

- Current Energy Order Book: Rs. 6,000 crores (already awarded) - Additional Pipeline for Energy: Over Rs. 4,000 crores expected to be announced soon - Total Expected Energy Order Book by March 2026: Rs. 10,000 crores - Telecom Order Book: Rs. 2,460 crores (good order book with some orders secured and others expected) - Expected BESS Orders by Q4 FY26: Another Rs. 4,000 crores (mix of BOO and EPC, approx. 60:40) - BOO Projects Order Book: About Rs. 3,250 crores (part of the Rs. 10,000 cr energy order book) - Order Execution: Around 40% of the Rs. 10,000 crores energy order book expected to be executed in FY27; balance in FY28 and beyond - L1 Position: Several tenders where company is L1, expected conversion by March 2026