| Pace Digitek Limited | ||||||
| Ratings reaffirmed at 'Crisil A- / Stable / Crisil A2+ ' | ||||||
| Rating Action | ||||||
| ||||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ratings on the bank loan facilities of Pace Digitek Limited (PDL; part of Pace group) at ‘Crisil A-/Stable/Crisil A2+’.
The ratings reflect the group's longstanding presence in the telecom segment, along with the highly integrated nature of operations, extensive experience of its promoters, healthy scale of operations along with a vast orderbook, and strong financial risk profile. These strengths are partially offset by susceptibility to tender-based operations, and large working capital requirement.
The ratings on the bank loan facilities of PDL were earlier upgraded to ‘Crisil A-/Stable/Crisil A2+’ from ‘Crisil BBB+/Stable/Crisil A2’ on December 08, 2025. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of PDL, its subsidiaries and step-down subsidiary. This is because all these entities, together referred as the Pace group, operate in the same industry, and have operational and financial linkages. Crisil Ratings also has moderately consolidated Transgreenx Energy Private Limited (TEPL) to the extent of support required over the medium term, as this will act as an SPV for the group to house the BESS projects.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Longstanding presence in the energy segment and highly integrated nature of operations: The business risk profile of Pace group is supported by its longstanding presence of over two decades in the passive telecom infrastructure and optical fibre cable (OFC) industry. Integrated operations enable the group to provide comprehensive solutions, encompassing manufacture of power management systems, installation and erection, engineering, procurement, and construction (EPC) or turnkey services. Additionally, the group offers operations and maintenance (O&M) and product life cycle management services. The Pace group is one of the unique players, having unique capabilities across the value chain. It is one of the front runners in the BESS segment, having commenced the indigenous manufacturing/assembly and commissioning of sites. As it expands into new product segment and service offerings, its business risk profile is expected to strengthen further.
Healthy scale of operations and strong orderbook: The group’s revenue has grown substantially by 386% to Rs 2,439 Crore in fiscal 2025, from Rs 517 Crore in fiscal 2023. This was largely driven by the execution of BSNL’s 4G saturation project, which was awarded in March 2023. The order entailed installation of passive infrastructure equipment and erection of telecom towers in uncovered villages through 9,550 sites spread over 13 states/union territories. The O&M for the subsequent six years also forms a part of the project scope. The project is being executed by BSNL, who is also the service provider, and funded by Universal Service Obligation Fund (USOF). The total value of the order received was Rs 7,568 crore (including O&M), out of which orders worth Rs 2,573 crore were yet to be executed as of November 2025. Furthermore, the group has an outstanding orderbook of Rs 9,135 crore as of November 2025, providing sufficient revenue visibility over the medium term. The group aims to further augment its orderbook, which will remain a key monitorable.
Healthy financial risk profile: The financial risk profile of the Pace group is expected to remain healthy, with gearing and TOL/TNW ratios projected to be in the range of 0.10-0.20 time and 0.50-0.50 time, respectively, with tangible networth of more than Rs 2,000 crore as on March 31, 2026. The financial risk profile has improved during fiscal 2025, following an equity infusion through five rounds of private placement, IPO proceeds received in October 2025, and repayment of inter-corporate loan of Rs 250 crore in December 2024. Debt protection metrics are expected to improve substantially, with the interest cover and net cash accrual to adjusted debt ratios projected to exceed 15 times and 1 time, respectively, for fiscal 2026. Despite the debt- funded capex undertaken towards the MSEDCL BESS project, the financial risk profile should remain comfortable over the medium term. |
Key Rating Drivers - Weaknesses Susceptibility to tender-based operations: Revenue and profitability will depend on the ability to win large tenders amid intense competition, which requires aggressive bidding, thereby restricting the operating margin. Securing large orders from strong counterparties in a timely manner will remain crucial for sustenance of the growth rate over the medium term.
Large working capital requirement: Gross current assets (GCAs) were high at 346 days as on March 31, 2025, led by receivables of 276 days. Receivables remain inflated during the fiscal-end as higher revenue booking happens in the last quarter (Rs 509 crore was booked in March 2025 on a standalone basis). Payments from BSNL are received within 60-90 days of billing, while certain portion of receivables include the deferred revenue portion with unbilled revenue. Though a part of these receivables should be realized during this fiscal, working capital intensity may persist over the medium term. Nevertheless, the group has managed its working capital through own funds with minimal reliance on external debt, resulting in healthy return on capital employed (RoCE) of 43% for fiscal 2025. |
Liquidity Strong Expected annual cash accrual of over Rs 300 crore should also suffice to cover the yearly term debt obligation of Rs 120-130 crore over the medium term. Average fund-based bank limit utilisation was moderate, at around 85% for the 12 months ended June 30, 2025. Unencumbered fixed deposits and current account balances of Rs 96 crore were maintained for the 12 months ended June 30, 2025, further supporting the liquidity. |
Outlook Stable Crisil Ratings believes the Pace group will continue to benefit from the extensive experience of its promoters in the energy segment and their established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
|
About the Group PDL (earlier known as Pace Power Systems Private Limited) was incorporated in 2007. The company provides passive telecom infrastructure and O&M services to telecom operators and offers solutions to energy segments, including BESS.
Lineage Power Private Limited (LPPL) is a subsidiary of PDL, engaged in manufacturing and supply of power management systems, BESS and other related products.
Pace Renewable Energies Private Limited (PREPL) is a subsidiary of PDL, which undertakes solarisation of telecom towers. The company will be responsible for execution of the recently awarded MSEDCL project.
TEPL is the newly incorporated subsidiary of PDL and will be acting as SPV for executing the BESS projects.
Lineage Power Holding (Singapore) PTE Limited is a wholly owned subsidiary of PDL. It was floated as a holding company for Lineage Power Myanmar Limited (LPML).
LPML is a step-down subsidiary of PDL, engaged in execution of projects in Myanmar and Africa.
AP Digitek Infra Private Limited (APDIPL) and Inso Pace Private Limited (IPPL) are subsidiaries of PDL, which were floated to execute specific projects. These projects were not awarded and hence, the companies do not have any operations currently. |
Key Financial Indicators Consolidated
For 6 months ended September
|
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
|
Annexure – List of entities consolidated
|
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
* - Issuer did not cooperate; based on best-available information
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||
|
Criteria Details
|