Pace Digitek’s unit, Lineage Power, has signed a deal to supply battery storage systems to Bondada Renewable Energy. This agreement supports the company’s goal to expand its role in India's growing energy storage market. The firm is currently doubling its production capacity to meet expected demand.
Pace Digitek Ltd announced on Friday that its subsidiary, Lineage Power Private Ltd, has entered into a Memorandum of Understanding with Bondada Renewable Energy Private Ltd to supply Battery Energy Storage Systems (BESS). The partnership covers a wide range of storage solutions, including DC blocks, commercial and industrial cabinets, residential units, as well as necessary power conversion and energy management systems.
Expanding Manufacturing Footprint
The company is currently working to increase its BESS manufacturing capacity from 5 GWh to 10 GWh. Pace Digitek expects this expansion to be fully operational between late September and mid-October. This scaling effort is central to the company’s financial outlook, as management has provided a revenue guidance range of ₹3,200 crore to ₹3,400 crore for FY26-27, with the BESS segment expected to be the primary contributor.
Strategic Direction and Sector Demand
The management, led by Chairman and Managing Director Venugopal Rao Maddisetty, stated that the company is focusing on BESS to align with India’s broader shift toward renewable energy. Battery storage is considered a vital link in the renewable energy chain, as it allows electricity generated during peak solar or wind hours to be stored and used when production is low. The company also pointed to specific state-level initiatives, such as plans in Maharashtra to develop large-scale battery storage capacity, as indicators of a stable demand pipeline.
Pace Digitek clarified that it holds no equity stake in Bondada Renewable Energy, and the deal is not considered a related party transaction. The financial specifics of the agreement will be defined in the final contracts.
Market Performance and Monitoring
Shares of Pace Digitek Ltd closed at ₹215.80 on the BSE on Friday, reflecting a decline of ₹3.50 or 1.65%. For investors, the execution of the capacity expansion remains a key monitorable. As the company aims for a significant revenue contribution from the BESS segment by FY27, shareholders will likely track the commissioning date of the new production facilities and the actual conversion of these memorandum agreements into finalized orders. Potential risks for the sector include competition from other energy storage manufacturers and the ability to maintain profitability margins if raw material costs for battery components fluctuate.