Synopsis: After securing a significant ₹494.54 crore Letter of Acceptance from NTPC for a Battery Energy Storage System (BESS), Pace Digitek has further solidified its transition into the high-growth energy storage sector. The contract, which includes an 11-year maintenance clause, provides long-term revenue visibility despite current equity market volatility.
Shares of a leading telecom and solar infrastructure provider came into sharp focus after the company announced a major domestic order win from NTPC. The contract, valued at nearly ₹500 crore, marks a significant milestone in the company’s engineering, procurement, and construction (EPC) portfolio. Despite the positive order flow, the stock witnessed a sharp correction in the latest trading session.
With a market capitalisation of Rs. 3,067 crore, the shares of Pace Digitek Ltd closed at Rs. 141.72 per share on Monday, down 6.71 percent from its previous closing price of Rs. 151.92 apiece. Its ROE stands at 31.4 percent and ROCE stands at 41.3 percent.
NTPC Order Allotment Update
Pace Digitek has received a Letter of Acceptance (LoA) from NTPC for the establishment of a Battery Energy Storage System (BESS) at the Nabinagar Super Thermal Power Station. The total contract value stands at ₹494.54 crore. The project’s scope is comprehensive, covering the supply, installation, testing, and commissioning of the BESS equipment, alongside necessary civil and structural works.
The execution timeline is divided into two phases: the supply and services component is scheduled for completion within 15 months, while the maintenance component extends over a design life of 11 years. This dual-structured contract is strategically significant as the 11-year maintenance tail ensures a steady stream of high-margin recurring service revenue long after the initial EPC phase is completed.
The NTPC win validates Pace Digitek’s technical capability to execute large-scale battery storage projects for Tier-1 utility players. While the 15-month execution window suggests a rapid revenue ramp-up, the 11-year maintenance commitment introduces long-term operational responsibility. Investors should monitor the company’s working capital management as it scales these capital-intensive EPC projects.
Business Overview
Incorporated in 2007, Pace Digitek provides integrated solutions for the telecom infrastructure and solar industries, including the manufacturing of lithium batteries and DC power systems. For the third quarter of FY26, the company reported a consolidated revenue of Rs. 644 crore, representing a 13.5 percent year-on-year increase. Its Net Profit for the same period rose 8 percent to Rs. 79 crore, supported by an expanding order book that now exceeds Rs. 8,400 crore.
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