Buy

Last Updated: 26 Feb 2026, 04:54 pm IST | Report Date: Feb 14, 2026

Pace Digitek Limited Stock Analysis

Name: Pace Digitek Limited (PACEDIGITK) Stock Analysis
Brand: NSE India
Rating: 7.5 (1 reviews)

PACEDIGITK NSE India

Pace Digitek Limited (PACEDIGITK) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

Share Share Share

Pace Digitek demonstrates strong profitability metrics with EBITDA margin of 29.31% and net profit margin of 20.55% on Q3 FY26 revenue of Rs. 4,451 crore, generating PAT of Rs. 915.51 crore and EPS of Rs. 9.59. The company successfully completed a landmark IPO raising Rs. 9,191.39 crore and maintains a robust balance sheet with total equity of Rs. 13,533 crore against manageable debt (long-term borrowings of Rs. 1,919 crore and short-term of Rs. 822 crore). Strong cash position of Rs. 4,103 crore and healthy investment base of Rs. 5,927 crore indicate financial flexibility, though the absence of cash flow data, comparative growth metrics, and detailed return ratios limits full assessment of operational efficiency and earnings sustainability.

Based on: Pace Digitek Limited - Financial Results (14/2/2026) (Feb 14, 2026)

+ Key Strengths

Exceptional profitability with EBITDA margin of 29.31% and net profit margin of 20.55%, indicating strong pricing power and cost management in the EPC business

Successful IPO execution raising Rs. 9,191.39 crore provides substantial capital for growth initiatives and strengthens the balance sheet with total equity of Rs. 13,533.16 crore

Strong liquidity position with cash and equivalents of Rs. 4,102.90 crore, representing 18.2% of total assets and providing significant operational flexibility

Moderate leverage with total debt of Rs. 2,741.85 crore (Rs. 1,919.41 crore long-term + Rs. 822.44 crore short-term) against equity of Rs. 13,533 crore, indicating debt-to-equity ratio below 0.21

Strategic diversification into high-growth renewable energy storage with subsidiary Pace Renewable Energies securing Rs. 1,221.60 crore IREDA loan sanction for BESS project

Robust quarterly earnings of Rs. 915.51 crore PAT and EPS of Rs. 9.59 demonstrate scalable business model post-listing

- Key Risks

Complete absence of cash flow data prevents assessment of operating cash generation, free cash flow conversion, and capital allocation efficiency critical for an EPC business

Financial statements subject to limited review rather than full audit for Q3 and nine-month periods, with management acknowledging figures were not audited, raising earnings quality concerns

No year-over-year or quarter-over-quarter growth comparisons provided, making it impossible to assess revenue momentum, margin trends, or earnings trajectory

High inventory of Rs. 2,121.19 crore (17.8% of current assets) in an EPC business may indicate project execution delays or working capital inefficiencies without turnover metrics

Lack of key operational metrics including ROE, ROCE, ROA, receivables turnover, and working capital cycle prevents evaluation of capital efficiency and asset productivity

No disclosure of customer concentration, order book, project pipeline, or revenue visibility, creating uncertainty about business sustainability beyond current quarter

Forward Outlook

Pace Digitek executed significant strategic initiatives in Q3 FY26, completing its Rs. 9,191.39 crore IPO and listing on NSE/BSE in October 2024, while incorporating new subsidiaries Transgreenx Energy and Lineage Defence and Aerospace to diversify beyond traditional EPC into renewable energy storage and defense sectors. The company made a strategic Rs. 1,100 crore rights issue subscription in Pace Renewable Energies (23.75 million shares at Rs. 46/share), which secured Rs. 1,221.60 crore IREDA financing for a battery energy storage systems project, positioning for growth in India's expanding renewable infrastructure market. Near-term catalysts include execution of the IREDA-funded BESS project through Pace Renewable Energies and potential order wins in defense/aerospace through newly established subsidiary, though the report provides no specific forward guidance on order book, project pipeline, revenue targets, or expected commissioning timelines. The strong cash position of Rs. 4,103 crore post-IPO provides substantial firepower for inorganic growth or capacity expansion, but lack of disclosed capex plans or management commentary on utilization strategy creates uncertainty about deployment timeline and return expectations.

All Scores

Date	Report	Score	Sentiment	AI
Feb 26, 2026	Pace Digitek Limited - Financial Results (14/2/2026)	7.5	Buy	Claude
Pace Digitek demonstrates strong profitability metrics with EBITDA margin of 29.31% and net profit margin of 20.55% on Q3 FY26 revenue of Rs. 4,451 crore, generating PAT of Rs. 915.51 crore and EPS of Rs. 9.59. The company successfully completed a landmark IPO raising Rs. 9,191.39 crore and maintains a robust balance sheet with total equity of Rs. 13,533 crore against manageable debt (long-term borrowings of Rs. 1,919 crore and short-term of Rs. 822 crore). Strong cash position of Rs. 4,103 crore and healthy investment base of Rs. 5,927 crore indicate financial flexibility, though the absence of cash flow data, comparative growth metrics, and detailed return ratios limits full assessment of operational efficiency and earnings sustainability. STRENGTHS: Exceptional profitability with EBITDA margin of 29.31% and net profit margin of 20.55%, indicating strong pricing power and cost management in the EPC business / Successful IPO execution raising Rs. 9,191.39 crore provides substantial capital for growth initiatives and strengthens the balance sheet with total equity of Rs. 13,533.16 crore / Strong liquidity position with cash and equivalents of Rs. 4,102.90 crore, representing 18.2% of total assets and providing significant operational flexibility / Moderate leverage with total debt of Rs. 2,741.85 crore (Rs. 1,919.41 crore long-term + Rs. 822.44 crore short-term) against equity of Rs. 13,533 crore, indicating debt-to-equity ratio below 0.21 / Strategic diversification into high-growth renewable energy storage with subsidiary Pace Renewable Energies securing Rs. 1,221.60 crore IREDA loan sanction for BESS project / Robust quarterly earnings of Rs. 915.51 crore PAT and EPS of Rs. 9.59 demonstrate scalable business model post-listing RISKS: Complete absence of cash flow data prevents assessment of operating cash generation, free cash flow conversion, and capital allocation efficiency critical for an EPC business / Financial statements subject to limited review rather than full audit for Q3 and nine-month periods, with management acknowledging figures were not audited, raising earnings quality concerns / No year-over-year or quarter-over-quarter growth comparisons provided, making it impossible to assess revenue momentum, margin trends, or earnings trajectory / High inventory of Rs. 2,121.19 crore (17.8% of current assets) in an EPC business may indicate project execution delays or working capital inefficiencies without turnover metrics / Lack of key operational metrics including ROE, ROCE, ROA, receivables turnover, and working capital cycle prevents evaluation of capital efficiency and asset productivity / No disclosure of customer concentration, order book, project pipeline, or revenue visibility, creating uncertainty about business sustainability beyond current quarter

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.