Pace Digitek Infra Private Limited (formerly Pace Power Systems Private Limited)
Headquarterd in Bengaluru, India .Founded with expertise in power systems for telecom infrastructure, the company has evolved into an integrated infrastructure solutions provider with diversified verticals including telecom, energy, and EPC. The rebranding to Pace Digitek Infra reflects its expansion into large-scale infrastructure execution.
Power Management Systems: Design, manufacture, installation, and maintenance for telecom infrastructure.
Optic Fiber Laying Solutions: Deployment of high-speed connectivity networks.
Renewable Energy Solutions: Implementation of sustainable energy and green infrastructure projects.
Key Clients: Telecom operators and government agencies (rural electrification & digital infrastructure projects).
With India's strong infrastructure push (5G rollout, PM GatiShakti, green energy transition), Pace Digitek has positioned itself as a key EPC and infrastructure solutions player.
Revenue Growth: Jumped from ₹516 Cr (FY23) to ₹24,388 Cr (FY25), a 4626% increase in just two years.
EPC Pivot: 97.4% of FY25 revenue came from EPC projects, making it the dominant business segment.
Equity Infusion: Share capital increased from ₹5 Cr to ₹35.6 Cr in FY25.
Debt Reduction: Borrowings reduced by 67%, strengthening the balance sheet.
Cash Flow Stress: Despite profits, the company posted negative operating cash flow due to mounting receivables.
Revenue Mix (FY25):
EPC Projects – ₹2376Cr (97.4%)
Services – ₹33.1 Cr (1.4%)
Products – ₹29.4 Cr (1.2%)
Insight: Negative operating cash flow in FY25 is a critical concern, driven by receivable buildup.
Key Ratios:
Current Ratio: 1.53 (vs. 1.14 in FY24) → Improved liquidity but low-quality assets.
Debt-Equity: 0.14 (vs. 1.24) → Low leverage, stronger balance sheet.
ROE: 34% (down from 56%) → Diluted post-equity infusion.
Trade Receivables Days: 170 (worsened, slower collections).
EPC Projects: Core revenue driver, ₹2376Cr contribution.
Products & Services: ₹62.6 Cr combined; minimal contribution.
Government infra push (PM GatiShakti, NIP).
Rural electrification and digital connectivity.
Renewable energy transition.
Liquidity Crisis: Working capital cycle heavily stretched.
Competition: Intense margin pressures in EPC space.
Execution Risk: Project delays may erode profitability.
Strengthen receivable collection process.
Explore invoice discounting for cash flow.
Maintain EPC leadership while expanding renewable projects.
Hybrid DC Power System, DC Power System, Charge Control Unit (CCU), Lithium Battery, AMF, LT Panel / Meter panel, DG, Outdoor IP-55 Cabinet, Remote Monitoring System (RMS), Inverter, SMPS
Power Management Systems – Reliable power infrastructure solutions.
Optic Fiber Laying – High-speed digital connectivity solutions.
Renewable Energy Solutions – Clean energy-driven infrastructure.
Current unlisted share price: 225
Market Cap : 4015 Cr
Ratios: P/E - 14.39 ; P/B - 3.32
Future Outlook
Positive Tailwinds: Infrastructure push, renewable adoption.
Critical Fix Needed: Working capital management.
Long-Term Growth: Strong potential to become a market leader if liquidity is stabilized.
Strengths:
Diversified Revenue Model (Products, EPC, O&M).
Strong Order Book & Astronomical Revenue Growth.
Robust Balance Sheet with Low Debt and High Reserves.
Niche Expertise in high-demand sectors (Telecom, Power, Renewable Energy).
Weaknesses:
Severe Working Capital Management Issues.
Negative Operating Cash Flow.
High Customer Concentration Risk.
Opportunities:
Government Initiatives (Infra Pipeline, 5G, Green Energy).
Proven Scalability for Large Contracts.
Expansion in Rural Electrification & Connectivity.
Threats:
Intense Competition in the EPC Sector.
Execution & Project Delay Risks.
Potential Liquidity Crisis.
Investment Thesis: Pace Digitek is an infrastructure growth story with explosive revenue scale-up and a strong balance sheet post-equity infusion. Its EPC dominance ensures future contracts, especially under India’s infrastructure boom.
Risks: Severe working capital issues may lead to solvency risks if not addressed immediately.
Suitability: Suitable for HNIs and long-term investors with a high-risk appetite. Short-term liquidity constraints may weigh on performance.
CONCLUSION
Pace Digitek Infra has undergone a transformative phase from FY2023 to FY2025, evolving into a significant entity in the infrastructure space. This transformation is marked by explosive revenue growth (from ₹516 Cr to ₹24,387 Cr), a strengthened balance sheet through a substantial equity infusion, and improved profitability. However, this rapid growth has introduced a significant challenge: severe working capital strain evidenced by soaring receivables and negative operating cash flow in FY2025. The company's strategic focus on large-scale EPC projects has been the key driver of this growth.
Disclaimer:
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