What Is the Order?
Pace Digitek has secured a significant project for the development of a 250MW / 500MWh Battery Energy Storage System at Maithon Dam in Dhanbad, Jharkhand. The contract is divided into three distinct work streams: supply of plant and equipment worth ₹573.73 crore, EPC services for engineering and installation valued at ₹57.43 crore, and a 12-year comprehensive Operation and Maintenance phase contributing ₹70.80 crore. The storage facility is designed to evacuate 250 MW of power for a minimum duration of two hours during grid peak times, primarily charged via floating solar and hydel power sources.
Client Profile
The contract was awarded by Damodar Valley Corporation, a premier power utility operating under the Ministry of Power, Government of India. DVC is actively transitioning its energy mix, aiming to add approximately 3.5 GW of renewable energy capacity by FY2032. This BESS project is part of DVC's Phase I initiative to deploy a cumulative 1,000 MWh of storage capacity across Jharkhand and West Bengal.
Partnering with a central government agency provides Pace Digitek with significant credit stability and positions the company as a key contributor to India's national energy storage obligations.
Business Impact
- Strengthens the company order book which exceeded ₹6,400 crore for fiscal year 2026
- Provides 12 years of steady annuity income through the long-term O&M contract
- Validates the company's strategic pivot from telecom infrastructure to high-growth energy storage
- Demonstrates capability to handle grid-scale energy transition projects for large public utilities
- Improves revenue visibility with a clearly defined 18-month execution window for the EPC phase
Business Overview
Originally a telecom infrastructure specialist, Pace Digitek has evolved into an integrated energy solutions provider. The company operates across two primary segments: Energy and Telecom. Through its subsidiary, Lineage Power Private Limited, it has established sophisticated manufacturing facilities in Bengaluru capable of producing containerized, liquid-cooled BESS units.
The company is currently scaling its cell-to-container capacity toward a 10 GWh target. By integrating manufacturing with EPC and O&M capabilities, the company maintains control over the entire storage value chain, from component supply to long-term grid integration.
Financial Context
Pace Digitek currently trades at a TTM Price-to-Earnings ratio of 15.91, which sits considerably below the industry average of 61.25, indicating a different valuation profile compared to its telecom equipment peers. The company reported annual operating revenue of ₹2,438.78 crore for the previous fiscal year, with a healthy Return on Equity of 22.87 percent. While historical operations focused on telecom cables and towers, the recent surge in energy-related orders, including major wins from SECI and NTPC, reflects a shifting revenue mix that now prioritizes renewable energy infrastructure over traditional telecom services.
