Pace Digitek targets 10 GWh BESS capacity by October 2026, eyes cell manufacturing entry
Pace Digitek Limited said it is accelerating its expansion in the Battery Energy Storage System (BESS) manufacturing segment and is targeting 10 GWh of operational capacity by October 2026, ahead of its earlier timeline, according to statements made during the company’s investor call held on May 26, 2026.
The company currently operates a 2.5 GWh BESS manufacturing facility, which achieved around 80% utilisation during FY2026 and delivered 178 BESS containers during the year.
Expansion to 5 GWh is under implementation, with machinery already received and installation activities in progress. The company said the 5 GWh line is expected to become operational from July 2026. Infrastructure for the next phase of expansion to 10 GWh has also been completed, while orders for the additional 5 GWh production lines have been placed.
Delay due to shipment disruptions
Pace Digitek said the commissioning timeline was delayed by about two months due to shipment disruptions linked to the conflict in West Asia, which affected global freight movement.
The company stated that equipment imports from China were delayed, although all machinery has now arrived and is under installation. The 5 GWh manufacturing line is expected to be commissioned by end-June 2026.
Cell manufacturing plans
Chairman and Managing Director Venugopal Rao Maddisetty said the company is also evaluating backward integration into cell manufacturing.
According to the company, an announcement related to cell manufacturing is expected in the near term. The company said it currently holds a strong position in cell-to-pack and pack-to-container assembly in India and that the accelerated expansion to 10 GWh is intended to maintain its market position.
As of May 25, 2026, the company’s executable order book stood at Rs 11,338 crore. Of this, the energy sector accounted for Rs 8,854 crore, including around 5.32 GWh of BESS-related orders.
Container fabrication facility
The company is setting up an in-house container fabrication facility to reduce logistics costs and improve operational efficiency.
Pace Digitek said imported containers previously accounted for nearly 30% of total container expenses due to freight and handling costs. The in-house facility is expected to improve pricing and operating efficiencies by around 4% to 5%.
The fabrication plant has been completed and is expected to become operational from July 2026.
Cell price impact
The company said lithium-ion cell prices have increased by nearly 20% since April 1, 2026, following regulatory changes in China.
However, Pace Digitek stated that it had accumulated strategic inventory as of March 31, 2026, at earlier prices, which is expected to protect margins during the current quarter.
For future quarters, the company said contingency factors have been included in project bidding to address price volatility. Current BESS container realisation is around $82–$84 per kWh, while cell costs account for nearly 60% of the total system value.
The company added that if elevated cell prices continue, it may evaluate force majeure provisions available under government guidelines that allow project extensions of two to four months.
Technology approach
Pace Digitek said it follows a technology-agnostic strategy and currently uses lithium iron phosphate (LFP) cells.
The company stated that its internal research and development team continuously evaluates emerging global technologies and that future technology changes are not expected to materially affect the business before it begins its own cell manufacturing operations.
Revenue guidance
Pace Digitek reiterated its revenue guidance of Rs 3,200–3,400 crore for FY2027 and Rs 4,000–4,200 crore for FY2028.
The company expects profit after tax (PAT) margins of 10–11% in FY2027, supported by growth in BESS, telecom, and digital infrastructure orders.
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