Pace Digitek Subsidiary Wins Rs 92.9 Crore Battery Storage Order

Order Value: Rs 92.9 crore
Capacity: 100 MWh BESS

Reader Takeaway: New order boosts BESS business; manufacturing capacity doubles, targeting 10 GWh.

What just happened

Pace Digitek Limited announced that its material subsidiary, Lineage Power Private Limited (LPPL), has received a Letter of Award from Kalpa Power Private Limited (KPPL). The contract is for the supply and commissioning support of a Battery Energy Storage System (BESS) with a capacity of 100 MWh. The order is valued at Rs 92.9 crore, inclusive of GST.

Why this matters

This order strengthens Pace Digitek's growing Battery Energy Storage System business and provides enhanced near-term visibility for its manufacturing operations. It signifies the company's ability to secure substantial contracts in the rapidly expanding energy storage sector.

The backstory

Pace Digitek has been scaling its BESS manufacturing capabilities to meet growing demand for utility-scale and Commercial & Industrial (C&I) energy storage. The company has already manufactured over 300 utility-scale BESS containers, equivalent to approximately 1.5 GWh, in the past year.

What changes now

The new contract is slated for completion by December 31, 2026. Pace Digitek has also significantly expanded its BESS manufacturing capacity from 2.5 GWh to 5 GWh. The company aims to further increase this to 10 GWh by the end of FY2027 to support larger projects and increased product supply.

Risks to watch

Investors should monitor the project execution timeline and the company's ability to meet its ambitious manufacturing capacity expansion targets by FY2027. Delays or cost overruns could impact profitability.

Peer comparison

While specific peer order values and capacities are not detailed in this filing, the BESS sector is seeing increased activity as India pushes for renewable energy integration and grid stability.

Context metrics (time-bound)

Pace Digitek's BESS manufacturing capacity has increased to 5 GWh from 2.5 GWh. A target of 10 GWh is set by the end of FY2027. Over the past year, the company manufactured over 300 utility-scale BESS containers (approx. 1.5 GWh).

What to track next

Investors should track the progress of the current 100 MWh BESS project with Kalpa Power and future order wins. Monitoring the company's capacity expansion roadmap and execution against the 10 GWh target by FY2027 will be crucial.