Newly listed telecom and energy infrastructure firm Pace Digitek Q1 FY26 highlights strong growth in revenue and profit for Q1 FY26, alongside strategic expansion moves, including the incorporation of a wholly owned subsidiary and a massive INR 1,159 crore Battery Energy Storage System (BESS) order from the Solar Energy Corporation of India (SECI).
Pace Digitek Q1 FY26 Results
| Particulars | Q1 FY25 | Q4 FY25 | Q1 FY26 | QoQ % | YoY % |
|---|---|---|---|---|---|
| Revenue from Operations | 3,421.61 | 6,832.68 | 3,670.79 | (46.3) | +7.3 |
| Total Income | 3,580.37 | 6,906.34 | 3,727.15 | (46.0) | +4.1 |
| Total Expenses | 2,917.36 | 6,154.43 | 2,988.36 | (51.4) | +2.4 |
| EBITDA Margin (%) | 18.5 | 10.9 | 20.1 | +9.2 pp | +1.6 pp |
| Profit After Tax | 496.08 | 563.12 | 546.98 | (2.9) | +10.3 |
| PAT Margin (%) | 13.9 | 8.2 | 14.7 | +6.5 pp | +0.8 pp |
| Basic EPS (INR) | 3.00 | 3.21 | 3.03 | (5.6) | +1.0 |
Quick Takeaways
- Revenue slipped sequentially on project-cycle timing but rose 7% YoY.
- Margins expanded sharply post-IPO, aided by lower finance costs.
- Telecom contributed ~93% of revenue; Energy division shows rising traction.
- PAT of INR 547 cr marks a solid start to FY26 despite seasonality.
The company’s total income stood at INR 3,727.15 crore, with a profit before tax of INR 738.79 crore.
Segment Performance: Telecom Dominates
The Telecom segment remained Pace Digitek’s growth engine, contributing INR 3,421.19 crore—roughly 93% of total revenue. Meanwhile, the Energy segment accounted for INR 249.61 crore, highlighting growing traction in renewable and power-related engineering, procurement, and construction (EPC) activities.
The company’s operations span across India, Myanmar, and Africa, offering manufacturing, installation, commissioning, and O&M services for telecom towers and fibre networks.
Strategic Expansion: New Subsidiary in the Pipeline
Pace Digitek’s board also approved the formation of a wholly owned subsidiary (WOS), signalling a strategic move to diversify or deepen existing business operations
Landmark SECI Contract Boosts Energy Portfolio
Earlier this week, Pace Digitek announced it had secured an INR 1,159.31 crore contract from SECI for a 600 MW / 1,200 MWh Battery Energy Storage System (BESS) project.
The contract involves the design, supply, installation, and 10-year maintenance of the system — positioning the company as a significant player in India’s energy storage ecosystem.
- 50% capacity to be commissioned within 14 months,
- Full capacity within 16 months of the contract’s effective date.
IPO Success & Market Debut
Pace Digitek made its stock market debut on 6 October 2025, following a successful INR 819.15 crore IPO priced at INR 219 per share. The issue, comprising a fresh issue of 3.73 crore shares and employee reservation, was subscribed 1.59 times.
The stock listed at INR 226.85 — a modest 3.58% premium — but has since shown volatility, currently trading around INR 218–INR 220 amid profit-booking post-results.
At the current price, the company commands a market capitalization of approximately INR 4,766 crore.
Market Reaction
Following the Pace Digitek Q1 FY26 announcement, shares fell nearly 4%, with investors citing weak operational margins compared to the March quarter. However, analysts attribute the decline to transient post-listing corrections and seasonal project execution cycles, rather than structural weakness.
Pace Digitek Q1 FY26 EBITDA stood at INR 80.05 crore, down 17.5% year-on-year, primarily due to project-related cost variations. Yet, net profit growth and revenue expansion suggest healthy demand across its telecom and energy businesses.
Positioned for Scalable Growth
Pace Digitek’s dual focus on telecom infrastructure and renewable energy storage places it in a unique position within India’s digital and energy transition ecosystem. The SECI BESS order, combined with the new subsidiary formation, points toward a deliberate pivot into high-value, sustainable engineering solutions.
Analysts note that if execution remains on track and margins stabilise, Pace Digitek could emerge as a mid-cap leader in energy-telecom convergence, catering to both 5G network expansion and renewable integration.
Conclusion
In its maiden quarter as a listed company, Pace Digitek has delivered steady growth, demonstrated strategic foresight, and captured a landmark government order that could redefine its trajectory. While the stock faces short-term pressure, the fundamentals — underpinned by strong telecom revenues, renewable energy diversification, and disciplined financial management — indicate a promising long-term outlook.
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