Pace Digitek arm Lineage Power signs MoU with Bondada Renewable Energy for BESS supply

Multi-disciplinary solutions provider specialising in the telecom passive infrastructure industry, Pace Digitek Ltd, on Friday (July 10), said its material subsidiary Lineage Power Private Ltd has entered into a Memorandum of Understanding (MoU) with Bondada Renewable Energy Private Ltd for the supply of Battery Energy Storage Systems (BESS).

Under the agreement, Lineage Power will supply various BESS solutions, including DC Blocks, C&I BESS cabinets, Residential BESS, Power Conversion Systems (PCS), Energy Management Systems (EMS) and battery containers. The company said the MoU has been executed with a domestic entity and the consideration will be as per the commercial terms of the agreement.

Pace Digitek said it does not hold any shareholding in Bondada Renewable Energy. The company also said the agreement does not fall under related party transactions and there is no relationship between the entity and the promoter, promoter group or group companies. No shares will be issued as part of the transaction, the company said.

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In July this year, Pace Digitek said it expects its battery energy storage systems (BESS) business to account for 55% of its financial year 2026-27 (FY27) revenue as demand for energy storage rises alongside renewable energy deployment in India, according to Venugopal Rao Maddisetty, Chairman and Managing Director of Pace Digitek.

The company plans to double its battery energy storage manufacturing capacity from 5 GWh to 10 GWh within the next three months, with the expansion expected to be commissioned by September-end or mid-October. The company has guided for 2026-27 revenue of ₹3,200-3,400 crore, with the BESS business expected to be the key growth driver.

Maddisetty said battery energy storage is becoming increasingly important as India adds renewable energy capacity, helping store electricity generated during peak production hours for later use. He pointed to growing policy support, including Maharashtra's plan to develop one lakh megawatt-hours of battery storage, as an indicator of rising demand.

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The company said construction for the new production line has already been completed, while equipment has been ordered and is expected to arrive by August. "Construction has already been completed, and the equipment has also been ordered... We will be completing the commissioning by the end or mid of October at the latest."

Shares of Pace Digitek Ltd ended at ₹215.80, down by ₹3.50, or 1.65%, on the BSE.

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