Pace Digitek Reaches 5 GWh Battery Storage Capacity With New 2.5 GWh Line

Market snapshot: Pace Digitek Limited has commissioned its new 2.5 GWh Battery Energy Storage System production line, successfully doubling its cumulative manufacturing capacity to 5 GWh. The expansion, executed through its material subsidiary Lineage Power Private Limited at its Bengaluru facility, directly addresses India's accelerating grid-scale energy storage requirements.

Data Snapshot

• Pace Digitek has doubled its operational Battery Energy Storage System manufacturing capacity to 5 GWh from the prior 2.5 GWh through its material subsidiary Lineage Power.
• The company's material subsidiary Lineage Power recently achieved a milestone of manufacturing over 300 utility-scale BESS containers representing approximately 1.5 GWh of storage capacity.
• Pace Digitek's executable order book stood at ₹11,338 crore as of May 25, 2026, with the energy sector accounting for ₹8,854 crore, including 5.32 GWh of BESS-related orders.

What's Changed

• BESS manufacturing capacity scaled from 2.5 GWh to 5 GWh with the commissioning of the new 2.5 GWh production line.
• Cumulative manufacturing output has crossed over 300 utility-scale containers, representing approximately 1.5 GWh of energy storage capacity.
• Raw material sourcing secured via a long-term 3 GWh lithium-ion battery cell supply agreement with Guangzhou Rongjie Energy Technology, lowering supply chain dependencies.

Key Takeaways

• Operational Capacity Doubled: Commissioning the new 2.5 GWh line elevates the group's total active BESS manufacturing capacity to 5 GWh, cementing its frontrunner position in India's grid-scale storage landscape.
• Clear Timeline to 10 GWh: Preparation for the next phase of expansion to 10 GWh is substantially complete, with orders already placed for the additional 5 GWh production lines targeted for Q3 FY2027.
• Robust Order Pipeline: The expansion directly supports the execution of a massive ₹8,854 crore energy order book, including a 5.32 GWh execution pipeline.
• Strengthening Supply Chain: Sourcing is secured through a 3 GWh LFP battery cell supply deal with Guangzhou Rongjie Energy Technology, mitigating international supply chain volatility.

SAHI Perspective

Pace Digitek's rapid capacity expansion from 2.5 GWh to 5 GWh highlights a high-execution business model that stands out in India's highly discussed but slow-to-execute BESS market. By reaching 5 GWh active capacity, the company is translating its massive order book into tangible execution. If the company achieves its 10 GWh target by Q3 FY2027 and successfully commissions its in-house container fabrication facility in Q2 FY2027, operating margins could see an efficiency improvement of 4% to 5% due to backward integration.

Market Implications

The capacity doubling allows Pace Digitek to faster execute utility-scale storage projects, such as its ₹494.54 crore NTPC BESS EPC order and its ₹701.95 crore DVC project. This places the group in a strong position to capture a dominant share of India's targeted 230 GWh of energy storage by 2030.

Trading Signals

Market Bias: Bullish

Capacity expansion to 5 GWh directly boosts execution capabilities for the company's ₹8,854 crore energy order book, with clear near-term triggers including the commissioning of a container fabrication facility in Q2 FY2027.

Overweight: Renewable Energy, Energy Infrastructure, Power Equipment

Trigger Factors:

• Commissioning of the in-house container fabrication facility in Q2 FY2027.
• Order execution progression on the ₹494.54 crore NTPC and ₹701.95 crore DVC contracts.
• Progress on the next phase of 5 GWh capacity scale-up to reach a cumulative 10 GWh by Q3 FY2027.

Time Horizon: Medium-term (3-12 months)

Industry Context

India's renewable energy growth is shifting focus to energy storage to balance peak load requirements. The Central Electricity Authority has mandated storage capacity alongside solar projects, aiming for approximately 230 GWh of energy storage by 2030. Currently, only about 30 GWh of storage has been awarded and 5 GWh is operational, leaving a massive, highly underserved market that Pace Digitek is well-positioned to capitalize on.

Key Risks to Watch

• High dependency on imported lithium-ion cells from China, exposing the company to tariff and pricing changes.
• Global shipment disruptions that previously caused a two-month delay in importing manufacturing machinery.
• Execution risk associated with scaling manufacturing capacity quickly to 10 GWh by late 2026.

Recent Developments

Pace Digitek's material subsidiary Lineage Power Private Limited established a dedicated research and development center in Pune (Pace-Lineage Research Center) and partnered with IISER Pune in July 2026 to focus on Advanced Chemistry Cells and battery materials. In addition, the subsidiary secured a ₹158.71 crore battery pack supply order from Reliance Industries Limited in February 2026, and entered a 3 GWh battery cell supply agreement with Guangzhou Rongjie Energy Technology in June 2026.

Closing Insight

With a robust executable order book and active manufacturing lines now scaling to 5 GWh, Pace Digitek has successfully transitioned from a telecom infrastructure player to a leading high-growth energy storage integration platform.

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