Telecom Stock Jumps 4% After Receiving a ₹94.35 Cr Purchase Order from BSNL

Synopsis: Pace Digitek’s subsidiary Lineage Power secured a ₹94.35 crore BSNL order to supply lithium-ion battery modules, IP55 racks, and long-term maintenance, to be executed within five months.

This Telecom Stock, engaged in designing, manufacturing, installing, and maintaining telecom power systems, fiber networks, and renewable energy solutions across India, jumped 3.53 percent after receiving an advance purchase order worth Rs. 94.35 crore from Bharat Sanchar Nigam Limited (BSNL).

With a market capitalization of Rs. 4,111.97 crores, the share of Pace Digitek Limited has reached an intraday high of Rs. 195.20 per equity share, rising nearly 3.53 percent from its previous day’s close price of Rs. 188.55. Since then, the stock has retreated and is currently trading at Rs. 190.50 per equity share.

Pace Digitek Limited, its material subsidiary, Lineage Power Private Limited, has received an advance purchase order worth Rs. 94.35 crore from Bharat Sanchar Nigam Limited (BSNL). The order is for the supply of 25,000 units of 100 AH/48V lithium-ion battery modules with BMS, along with required accessories, and 2,500 IP55 racks to house the battery modules. 

The contract also includes a five-year annual maintenance service after completion of the initial five-year warranty period for the supplied battery modules. The complete supply and execution of the order is expected to be completed within five months from the date of receipt of the purchase order.

Order Book: 

Pace Digitek Limited’s energy order book is robust at Rs. 5,869 crore, comprising major BOO and EPC projects. Key orders include SECI Solar 100 MW with 50 MW/100 MWh BESS valued at Rs. 650 crore, MSEDCL standalone BESS of Rs. 1,850 crore, KPTCL BESS project worth Rs. 600 crore, and MAHAGENCO EPC project valued at Rs. 920 crore, highlighting a strong presence in energy storage and renewable power.

In the telecom segment, the order book stands at Rs. 3,266 crore, led by BSNL tower projects worth Rs. 2,573 crore, along with telecom power infrastructure projects of Rs. 208 crore, OFC works of Rs. 155 crore, and O&M services valued at Rs. 300 crore, ensuring stable execution visibility.

Management Guidance:

Pace Digitek Limited has provided its financial guidance for FY26, estimating operational revenue in the range of Rs. 2,600 crore to Rs. 2,700 crore. The Company expects improved profitability with PAT margins of around 12 percent. Management also anticipates a reduction in working capital requirements, particularly on account of better receivables management.

For FY27, the Company projects revenue growth with topline expected between Rs. 3,100 crore and Rs. 3,200 crore, while maintaining PAT margins of 11-12 percent. Supported by a strong order book in the energy segment, revenue contribution from this segment is expected to increase significantly, with the developer model projected to generate EBITDA of about Rs. 120 crore.

Pace Digitek Limited is a Bengaluru-based company established in 2007, originally starting as an electrical equipment manufacturer for the telecom sector under names like Pace Power Systems. It has grown into a multi-disciplinary solutions provider focused on telecom infrastructure to enhance its energy management capabilities.

The company engages in designing, manufacturing, installing, commissioning, and maintaining telecom towers and optical fiber networks, offering end-to-end turnkey solutions across telecom, energy, and ICT sectors

Coming into financial highlights, Pace Digitek Limited’s revenue has decreased from Rs. 846 crore in Q2 FY25 to Rs. 533 crore in Q2 FY26, which is a drop of 36.99 percent. The net profit has also decreased by 33.33 percent from Rs. 102 crore in Q2 FY25 to Rs. 68 crore in Q2 FY26. Pace Digitek Limited’s revenue and net profit have grown at a CAGR of 81.79 percent and 185.41 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 41.3 percent and 31.4 percent, respectively. Pace Digitek Limited has an earnings per share (EPS) of Rs. 15, and its debt-to-equity ratio is 0.12x.

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