A) Breaking News: 5 GWh Battery Storage Facility Inaugurated in Bengaluru

PACE Digitek Infra Pvt Ltd has taken a monumental step in India’s renewable energy journey with the inauguration of its 5 GWh/year Battery Energy Storage System (BESS) facility at Bidadi Industrial Area, Bengaluru.

Inaugurated by: Union Minister for New & Renewable Energy, Pralhad Joshi

Why It Matters:

• Among the largest BESS facilities in India

• Supports peak demand management, renewable energy integration, and frequency regulation

• Aligns with India's 500 GW non-fossil energy target by 2030

• Positions India as a global manufacturing hub for advanced energy storage systems

Facility Highlights:

• Technology: Fully automated, cell-to-pack precision assembly line

• Grid Resilience: Tackles intermittency in solar/wind energy

B)  Government’s Backing for Energy Storage

Viability Gap Funding (VGF):

• ₹5,400 crore for 30 GWh battery storage projects

• Added to an existing scheme of ₹3,700 crore (13.2 GWh)

• Total VGF pool now stands at ₹9,100 crore

Future Demand Outlook:

• India’s battery storage demand projected to reach 236 GWh by 2032

• Total energy storage demand by 2032: 411 GWh

• Estimated market opportunity: ₹4.79 lakh crore (source: IESA)

C)  PACE Digitek Company Overview

 PACE Digitek boasts a market cap of ₹3,837 crore and trades at a share price of ₹215 . The company maintains a P/E ratio of 15.82 and a moderate debt-to-equity ratio of 0.8. It achieved a revenue of ₹2,511 crore, a PAT of ₹242.5 crore (with a net profit margin of 9.66%), and an impressive ROE of 43.69%. The EPS stands at ₹484.92, marking a staggering 1,500% YoY growth.

D) Business Model & Revenue Streams

1. Core Segments:

• Power Management: Telecom tower energy solutions

• Optical Fiber Laying: Telecom digital infrastructure projects

• Renewable Energy: Solar and energy storage (BESS)

2. Revenue Mix:

• Product Sales: Power equipment, lithium-ion batteries

• Project Execution: Government and telecom contracts

• O&M Services: Recurring income from maintenance

3. Key Clients:

• Telecom: BSNL, Jio, Airtel

• Government: Rural electrification, Smart City, BharatNet

Market Presence:

• Active in 20+ states across India

• BESS and solar EPC solutions being adopted in urban and semi-urban areas

E)  Financial Performance Snapshot (FY22–FY24)

PACE Digitek reported a stellar performance in FY24:

• Revenue grew from ₹516 crore in FY23 to ₹2,511 crore in FY24 (a 386% jump)

• EBITDA surged from ₹35.2 crore to ₹423 crore

• PAT rose from ₹15.2 crore to ₹242.5 crore

• Operating Cash Flow improved significantly to ₹371 crore

These figures reflect explosive growth across all financial metrics, with EBITDA and PAT showing over 1,000% YoY improvement.

F) Key Risks & Challenges

Project Delays: Government or telecom tender delays (e.g., BSNL) can impact revenue timelines.

Working Capital Pressure: FY24 gross current asset days stood at 239, indicating potential liquidity bottlenecks.

Revenue Concentration: Telecom infrastructure still constitutes ~70% of the company’s revenue.

Mitigation Strategies:

• Diversification into energy storage and renewable EPC

• Strategic partnerships and expanded BESS footprint

G) Growth Drivers & Investment Rationale

Renewable Energy Boom: India’s battery storage demand is projected to reach 236 GWh by 2032.

Government Incentives: ₹9,100 crore VGF and PLI schemes under Make-in-India are strong enablers.

Financial Strength: ROE at 43.69% and rapidly improving profitability add to investor confidence.

First-Mover Advantage: PACE Digitek is one of the first companies with a large-scale, automated BESS facility in India.

 Final Verdict: Is PACE Digitek the Next Multi-Bagger?

PACE Digitek’s sharp pivot toward renewable energy—highlighted by its 5 GWh battery plant—makes it one of the few Indian players positioned at the intersection of energy independence and digital connectivity. While risks remain in execution and sector exposure, its growth in FY24 signals strong fundamentals and execution capability.

Bottom Line: A high-risk, high-reward opportunity in India’s evolving energy-tech space.

Disclaimer: This blog is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.