Pace Digitek Obtains ₹92.9 Crore BESS Contract From Kalpa Power

Market snapshot: Pace Digitek Limited has bagged a commercial contract worth ₹92.93 crore from Kalpa Power Private Limited for a 100 MWh Battery Energy Storage System project. The order has been secured by the company's material subsidiary, Lineage Power Private Limited. The domestic project is scheduled to be completed by December 31, 2026.

Data Snapshot

• Lineage Power Private Limited has bagged a contract valued at ₹92.93 cr from Kalpa Power.
• The work order covers the supply and commissioning support of a 100 MWh Battery Energy Storage System.
• Pace Digitek doubled its BESS manufacturing capacity from 2.5 GWh to 5 GWh in August 2026.

What's Changed

• Pace Digitek's manufacturing capacity grew ≈100% (derived: 5 GWh vs 2.5 GWh) following the commissioning of its additional 2.5 GWh manufacturing line earlier this month.

Key Takeaways

• Material subsidiary Lineage Power Private Limited secured a domestic contract from Kalpa Power Private Limited worth ₹92.93 crore including GST.
• The contract is for the supply and commissioning support of a 100 MWh Battery Energy Storage System.
• The completion target is set for December 31, 2026, on an arm's-length basis with no related party interest.
• The order converts an earlier strategic MoU signed on July 9, 2026, at the 12th India Energy Storage Week into a binding commercial contract.

SAHI Perspective

This contract underscores Pace Digitek's transition from a legacy telecom infrastructure player to a high-growth energy storage and integration platform. By successfully converting the July 2026 MoU with Kalpa Power into a binding ₹92.93 crore commercial order, the company demonstrates strong monetization capability. Furthermore, having recently doubled its active manufacturing capacity to 5 GWh in early August 2026, Pace Digitek is well-positioned to meet the strict execution timeline of December 2026 without operational bottlenecks.

Market Implications

The order reinforces Pace Digitek's expanding footprint in India's utility-scale clean energy ecosystem. As renewable power integration accelerates across India, BESS solutions are becoming critical for grid stability. Winning commercial mandates from players like Kalpa Power highlights the growing market trust in Pace Digitek's localized manufacturing capabilities. This contract adds predictable near-term revenue and enhances the company's competitive positioning in the domestic utility-scale storage sector.

Trading Signals

Market Bias: Bullish

The ₹92.93 crore order win adds to Pace Digitek's high revenue visibility and utilizes its newly scaled 5 GWh active manufacturing capacity, boosting short-to-medium-term execution outlook.

Overweight: Energy Storage, Renewable Infrastructure

Trigger Factors:

• Successful project commissioning before the December 31, 2026 deadline
• Margin performance in upcoming quarterly results
• Fresh BESS order inflows from domestic utilities

Time Horizon: Near-term (0-3 months)

Industry Context

The Indian energy storage landscape is experiencing rapid expansion driven by government targets for renewable energy integration and grid modernization. Large-scale battery deployments are shifting from speculative concepts to commercial mandates. Companies with integrated, local manufacturing setups like Pace Digitek are gaining a first-mover advantage, supported by policy focus on domestic supply chains and clean energy infrastructure.

Key Risks to Watch

• Execution risk under tight timelines, with completion targeted by December 31, 2026.
• Raw material price volatility, particularly for lithium-ion battery cells sourced globally.
• Working capital pressure, given the company's historically negative operating cash flows.

Recent Developments

On August 4, 2026, Pace Digitek commissioned an additional 2.5 GWh BESS manufacturing line, successfully doubling its cumulative capacity to 5 GWh. On July 28, 2026, subsidiary Lineage Power crossed the milestone of manufacturing 300 utility-scale BESS containers (~1.5 GWh cumulative storage capacity). On July 9, 2026, subsidiary Lineage Power signed two strategic MoUs (with Kalpa Power and Onward Solar Power) to expand BESS supply partnerships.

Closing Insight

By formalizing the Kalpa Power agreement, Pace Digitek establishes its capability to convert strategic alliances into solid, revenue-generating commercial contracts. Supported by a newly scaled 5 GWh active manufacturing facility, the company remains highly competitive in India's accelerating energy storage transition.

High Performance Trading with SAHI.