Pace Digitek Q1 FY27 Results (NSE: PACEDIGITK)
Signal: Margin pressure
The read
Pace Digitek started FY27 with 51% revenue growth on strong BESS and telecom execution, but margin contracted 140 bps YoY to 20.6% and EPS fell 6.3% due to dilution. Record order book of ₹10,803 Cr and ongoing capacity expansion to 10 GWh set the stage for volume growth, though margin and shareholder dilution need monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹555.36 Cr | 51.3% | -49.4% |
| EBIT | ₹109.97 Cr | N/A | |
| Net profit | ₹61.32 Cr | 11.5% | |
| EPS | ₹2.84 | -6.3% | |
| EBIT margin | 20.6% |
P&L walk
Revenue jumped 51.3% YoY on strong BESS execution and telecom deployment, but EBITDA margin contracted 140 bps to 20.6% due to mix shift; PAT rose 11.5% to ₹61.3 Cr yet EPS fell 6.3% on equity dilution.
Segments
Energy and Telecom segments both contributed to growth, with Energy order book at ₹8,453 Cr dominating future revenue visibility; no segment revenue break-up provided.
Key positives
- Revenue grew 51.3% YoY to ₹555.4 Cr, driven by BESS and telecom execution.
- Order book stood at ₹10,803 Cr as of Aug 5, with Energy order book ₹8,453 Cr providing multi-year visibility.
- BESS installed capacity expanded to 5 GWh post quarter, on track to 10 GWh.
- Strategic OEM partnership with NEC XON opens access to African BESS markets.
- EBITDA margin improved sequentially from 15% to 20.6%, indicating operating leverage as revenue scaled.
Key concerns
- EBITDA margin contracted 140 bps YoY to 20.6%, resuming compression after one quarter of expansion.
- EPS declined 6.3% YoY despite 11.5% PAT growth, signaling equity dilution.
- Other income contributed 34.7% of PBT (₹28.3 Cr), inflating profit quality.
Earnings quality: includes non-operating other income
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