Pace Digitek LtdQ3 FY25Telecom - Services

Pace Digitek Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Revenue guidance

Category 2

→FY26 revenue target: INR 2,600 - 2,700 crores with 11% to 12% PAT margin (Page 6, 14)
→FY27 revenue target: INR 3,100 - 3,200 crores with 11% to 12% PAT margin (Page 6, 14)
→Order book of INR 9,135 crores expected to convert mostly in FY26 and FY27 (Page 6)
→Energy segment revenue growth: From INR 160 crores last year to INR 500-550 crores in FY26 (Page 8)
→Expansion of BESS manufacturing capacity from 5 GWh to 10 GWh by FY27, project cost ~INR 100 crores (Pages 9, 12)
→BESS business EBITDA margins expected between 13% to 15% (Page 13)
→Developer model projects (~INR 3,300 crores) expected to begin contribution from FY27, full revenue by FY28 (Pages 6, 12)
→Expect increase in order intake and revenue from energy segment alongside telecom (Page 21)

Category 3

→FY26 revenue guidance: INR 2,600-2,700 crores with PAT margin of 11-12%.
→FY27 revenue target: INR 3,100-3,200 crores with PAT margin sustained at 11-12%.
→Strong order book of INR 9,135 crores, with significant revenue conversion expected in FY26 and FY27.
→Energy segment expected to grow from INR 160 crores (previous year) to INR 500-550 crores in FY26, contributing significantly to revenue.
→Battery Energy Storage System (BESS) capacity expansion from 5 to 10 GWh expected to generate INR 6,000-7,000 crores potential peak revenue with EBITDA margins between 13-15%.
→Developer model projects (worth INR 3,300 crores) expected to provide annual revenue of about INR 420 crores with an EBITDA margin around 85% from FY27 onwards, contributing strongly to profits.
→Operational efficiencies and backward integration initiatives aim to improve product margins from 15-18% and overall EBITDA margins around 25-30%.

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Yes

→The company plans to fund about 70% of certain projects through debt and 30% through equity.
→For the build-own-operate projects (developer model), equity infusion will primarily come from IPO proceeds (INR820 crores issue size with INR630 crores allocated to one specific project).
→As on September 30, 2025, net worth was about INR1,331 crores before IPO funds (IPO funds received post September 30, accounted from Q3 FY26).
→Additional capital expenditures for expanding battery energy storage system (BESS) capacity are planned (INR100-120 crores for new 5 GWh expansion).
→Internal accruals, LC limits, and mobilization advances fund EPC and supply contracts, implying no immediate equity or debt raise needed for these.
→No mention of any fresh equity raising apart from IPO proceeds; debt levels as of H1 FY26 are moderate (INR150 crores with 0.11 debt-equity ratio).
→Overall, current new fundraising appears focused on utilizing IPO equity and manageable project debt.

Yes

→Total current order book: INR 9,135 crores (Energy: INR 5,869 crores; Telecom: INR 3,266 crores)
→Energy segment order book expected to increase to INR 8,000 - 10,000 crores by end of FY 2026
→BSNL 4G order book: INR 2,573 crores
→ - INR 1,300-1,400 crores expected to be booked in FY 2026
→ - Balance INR 1,200 crores spread over next 3-4.5 years for O&M
→EPC contract from SECI for battery energy storage system: INR 1,159 crores
→Developer model projects (energy): INR 3,300 crores with annual revenue potential of INR 420 crores (EBITDA margin ~85%)
→Projects such as solar EPC with MAHAGENCO: INR 920 crores
→Target execution: 40 BESS sites for MSEDCL in FY 2026 (each 20 MWh)
→Overall revenue guidance for FY 2026: INR 2,600 - 2,700 crores; for FY 2027: INR 3,100 - 3,200 crores

Yes

→Expansion of Battery Energy Storage System (BESS) capacity from 5 GW to 10 GW at the same facility, with a capex of around INR 100 crores for the additional 5 GW.
→Initial 5 GW BESS facility capex was about INR 120 crores (excluding land), or INR 200 crores including land.
→Construction of a container fabrication unit to backward integrate and reduce production costs for BESS.
→INR 630 crores of IPO funds allocated specifically for a major project, with INR 150 crores already spent from internal accruals/debt; full utilization expected by September 2026.
→Additional investment of around INR 100 crores planned for expansion and setup of a new factory for BESS manufacturing.
→Emphasis on funding through a mix of IPO equity, debt (70% for developer projects), and internal approvals for EPC and supply contracts.

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