Pace Digitek shares rallied 13% today after its subsidiary, Lineage Power, secured a ₹488.46 crore contract to provide Battery Energy Storage Systems (BESS). The deal with NTPC GE Power Services for the Barh project includes five years of maintenance and a seven-year warranty. This win reinforces the company’s push to scale production capacity to 10 GWh by fiscal year 2027.
Shares of Pace Digitek surged 13.24% on the National Stock Exchange today following the announcement of a significant contract win. The company’s material subsidiary, Lineage Power Private Limited, has been awarded a ₹488.46 crore order from NTPC GE Power Services Private Limited. The contract is for the supply and maintenance of Battery Energy Storage Systems (BESS) at the Barh Super Thermal Power Project, a key move for the company as it attempts to solidify its presence in the utility-scale energy storage market.
Order Scope and Lifecycle Support
The project involves the end-to-end supply, testing, and commissioning of BESS containers. Crucially, the agreement includes an integrated Battery Management and Energy Management system. Beyond the initial equipment delivery, the contract provides long-term revenue visibility through five years of annual maintenance and a seven-year extended warranty for the battery containers. This lifecycle approach is part of the company's broader strategy to transition from a pure equipment manufacturer to a comprehensive BESS solution provider. The company has set a firm deadline to complete the project by December 31, 2026.
Scaling Production Capacity
Management is actively increasing manufacturing operations to meet the rising demand for energy storage solutions in India. Pace Digitek has recently expanded its production capacity to 5 GWh, doubling its previous output of 2.5 GWh. The company has publicly stated its target to reach 10 GWh of capacity by the third quarter of fiscal year 2027. To date, the firm has deployed over 1.5 GWh of BESS capacity, providing a operational baseline for its expansion into commercial and industrial energy storage applications.
As the company continues to move past its post-IPO phase, this contract serves as a significant indicator of its order execution capability. Investors will likely monitor the company’s ability to meet the December 2026 project deadline while scaling its total manufacturing capacity. The shift toward long-term maintenance agreements alongside equipment supply is also a metric worth tracking, as it may influence the company's future profit margins and cash flow stability compared to pure manufacturing models.