Pace Digitek Secures ₹92.9 Crore BESS Order From Kalpa Power

Market snapshot: Lineage Power Private Limited, a material subsidiary of Pace Digitek Limited, has secured a domestic work order valued at ₹92.93 crore (inclusive of GST) from Kalpa Power Private Limited. The contract involves the supply and commissioning support of a 100 MWh utility-scale Battery Energy Storage System (BESS) to be completed by December 31, 2026. This order formalizes a strategic Memorandum of Understanding (MoU) signed between the companies in July 2026.

Data Snapshot

• The domestic work order secured from Kalpa Power is valued at ₹92.93 crore (inclusive of GST).
• The contract capacity is specified as a 100 MWh Battery Energy Storage System (BESS).
• The project timeline requires complete execution and commissioning support by December 31, 2026.

What's Changed

• Lineage Power transitioned its strategic relationship with Kalpa Power from a non-binding MoU signed in July 2026 into a definitive contract worth ₹92.93 crore in August 2026.
• Pace Digitek's BESS manufacturing platform has scaled up to an operational capacity of 5 GWh per annum, progressing toward its long-term target of 10 GWh.

Key Takeaways

• Pace Digitek's material subsidiary, Lineage Power, has secured a definitive domestic contract worth ₹92.93 crore.
• The order covers the supply and commissioning support of a 100 MWh utility-scale Battery Energy Storage System (BESS).
• The contract is scheduled to be completed by December 31, 2026.
• This agreement formalizes a prior strategic MoU signed between Lineage Power and Kalpa Power in July 2026 during India Energy Storage Week.

SAHI Perspective

This work order marks a significant milestone in Pace Digitek's transition from telecom passive infrastructure into a major utility-scale Battery Energy Storage System (BESS) player. By converting its July 2026 MoU with Kalpa Power into a firm ₹92.93 crore contract, the company provides tangible validation for its scaling manufacturing capacity, which recently reached 5 GWh. With a total order visibility of over 5.1 GWh across its BESS business, Pace Digitek's execution capabilities are rapidly catching up with its manufacturing ambition, positioning it as a key beneficiary of India's clean energy transition.

Market Implications

The addition of a 100 MWh storage contract reinforces the commercial viability of India's utility-scale BESS market. For Pace Digitek, this order ensures robust revenue visibility through late 2026. This deal also demonstrates how renewable energy developers are increasingly locking in supply contracts to meet commercial and industrial deployment timelines, accelerating momentum in the battery storage value chain.

Trading Signals

Market Bias: Bullish

The conversion of the July 2026 MoU into a definitive ₹92.93 crore BESS contract provides strong near-term revenue and execution visibility. Pace Digitek's scaled BESS manufacturing capacity of 5 GWh further ensures robust support for pipeline execution.

Overweight: Renewable Energy, Power Infrastructure, Battery Energy Storage Systems

Trigger Factors:

• Successful supply and commissioning of the 100 MWh BESS by December 31, 2026.
• Commissioning of the expanded 10 GWh BESS manufacturing facility expected in Q3 FY2027.
• Conversion of other active pipeline MoUs into binding procurement orders.

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

Industry Context

India's battery storage sector is experiencing rapid expansion, driven by policies favoring grid integration and commercial energy management. Pace Digitek has capitalized on this trend by scaling its Bidadi manufacturing plant to 5 GWh of operational capacity, with a roadmap to hit 10 GWh by Q3 FY2027. Its subsidiary has also secured long-term cell sourcing through a 3 GWh master supply agreement with Guangzhou Rongjie Energy Tech to mitigate supply-chain bottlenecks.

Key Risks to Watch

• Potential bottlenecks in lithium-ion cell sourcing, although partially mitigated by the company's 3 GWh master supply agreement.
• Execution and commissioning delays beyond the strict December 31, 2026 deadline.
• Intensifying competition from larger energy infra conglomerates and battery manufacturers expanding into system integration.

Recent Developments

Pace Digitek's material subsidiary, Lineage Power, has secured several strategic milestones recently, including entering a 3 GWh battery cell supply agreement with Guangzhou Rongjie Energy Tech in June 2026. In July 2026, the company completed one year of commercial BESS manufacturing and crossed the milestone of manufacturing 300 utility-scale BESS containers (representing around 1.5 GWh of storage capacity). Previously in April 2026, Pace Digitek also entered an OEM partnership with NEC XON Systems to distribute its energy storage products in southern and eastern African nations.

Closing Insight

By turning non-binding strategic agreements into highly visible, high-value work orders, Pace Digitek continues to solidify its role in India's modern power grid infrastructure.

High Performance Trading with SAHI.