Pace Digitek Ltd IPO

Our business is significantly reliant on certain key customers, and we derived 96.25%, 99.45% and 92.16% of our revenue from operations during the Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively, from our top 10 customers. Further, our business, results from operations, and financial condition are dependent on maintaining relationship with our customers. Further, our business, results from operations, and financial condition are dependent on maintaining relationship with our customers. Loss of any of these customers or loss of revenue from any key customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.

A significant proportion of our orders are from government related entities which award the contract through a process of tender, and we derived 96.17%, 92.08% and 34.14% of our revenue from operations during the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, from our public sector customers. Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. Our performance could be adversely affected if we are not able to successfully bid for these contracts or required to lower our bid value.

Our business operations are diversified and are significantly dependent on demand from our end-use industries / sectors, in particular telecom sector. We derived 94.22%, 95.40% and 81.92% of our revenue from operations during the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, from the telecom sectors. Any downturn in the end-use industries / sectors could have an adverse impact on our Company's business and results of operations.

Our source of revenue is concentrated to certain regions in India. Our inability to operate and grow our business in such locations may have an adverse effect on our business, financial condition, result of operation, cash flow and future business prospects.

Our business operations have grown substantially in recent period, particularly in Fiscal 2024, and we may not be able to sustain our rate of growth in the future.

We have diversified our business operations in the past. Our future success and continued growth will depend on our ability to effectively implement our business and growth strategies. Our failure in effectively implementing our business and growth strategies may adversely affect our results of operations.

Failure to meet quality standards required by our customers may lead to cancellation of existing and future orders and expose us inter alia to warranty claims, including monetary liability.

We have a high working capital requirement and if we are unable to raise sufficient working capital, our operations will be adversely affected.

Delays in payments from our customers exposes us to credit risk and it may have an adversely impact our results of operations and cash flows.

Under-utilization of our currently operational production lines at our Manufacturing Facilities, set up through Lineage, and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our business, future prospects, and future financial performance.