IEX Reports Strong Q1 FY26 Results Amid Regulatory Changes in Power Market

2 min read     Updated on 01 Aug 2025, 01:57 PM
scanxBy ScanX News Team
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Overview

Indian Energy Exchange Limited (IEX) reported robust Q1 FY26 financial results with revenue up 19.2% to INR 184.20 crores and PAT increasing 25.2% to INR 120.70 crores year-on-year. Total electricity trading volume grew 15% to 32.4 billion units, with significant growth in Real-Time Market (41%), Green Market (51%), and REC trading (150%). Despite volume growth, average prices declined in Day-Ahead and Real-Time markets. CERC's order on market coupling implementation by January 2026 could impact IEX's market share. The company remains optimistic about future prospects, awaiting approvals for market expansions and noting strong growth in its associate, Indian Gas Exchange.

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*this image is generated using AI for illustrative purposes only.

Indian Energy Exchange Limited (IEX), India's premier power trading platform, has reported robust financial results for the first quarter of fiscal year 2026, despite facing potential regulatory challenges in the near future.

Strong Financial Performance

IEX demonstrated impressive growth in Q1 FY26, with revenue surging by 19.2% year-on-year to INR 184.20 crores, up from INR 154.50 crores in the same quarter last year. The company's profit after tax (PAT) also saw a significant increase of 25.2%, rising to INR 120.70 crores from INR 96.40 crores in Q1 FY25.

Volume Growth Across Segments

The exchange recorded a total electricity trading volume of 32.4 billion units during the quarter, marking a 15% year-on-year growth. This growth was driven by strong performance across various market segments:

  • The Real-Time Market (RTM) segment continued its robust growth trajectory, with volumes reaching nearly 13 billion units, a 41% increase year-on-year.
  • The Green Market volume rose by 51% year-on-year to 2.7 billion units.
  • The Renewable Energy Certificate (REC) trading saw a remarkable growth of nearly 150% over the same quarter last fiscal, with about 53 lakh certificates traded.

Price Trends and Market Dynamics

Despite the volume growth, average prices on the exchange saw a decline:

Market Segment Average Price (INR/unit) Year-on-Year Change
Day-Ahead Market (DAM) 4.41 -16%
Real-Time Market 3.91 -20%

This price reduction was attributed to improved supply liquidity, with supply in the Day-Ahead Market increasing by 45.2% year-on-year.

Regulatory Developments

The Central Electricity Regulatory Commission (CERC) issued an order on July 23, 2025, mandating the implementation of market coupling in the Day-Ahead Market by January 2026. This development could potentially impact IEX's dominant market share in this segment, which currently stands at over 95%.

Satyanarayan Goel, Chairman and Managing Director of IEX, commented on the order: "We are evaluating this order and yet to take a view on this. There are many options available, including proceeding with the implementation, seeking a review from CERC, or approaching APTEL."

Future Outlook

Despite the regulatory challenges, IEX remains optimistic about its future prospects:

  1. The company is awaiting approval from CERC on its petition to extend the Term Ahead Market contract from 3 months to 11 months.
  2. IEX is also awaiting a final order on its petition for the Green Real-Time Market segment.
  3. The company's associate, Indian Gas Exchange (IGX), reported strong growth with gas volumes of 24.6 million MMBtu in Q1 FY26, a 109% increase year-on-year.

Rohit Bajaj, Joint Managing Director of IEX, stated, "We at IEX remain committed to contribute to the development of a sustainable and energy-efficient future for India."

As the power sector continues to evolve with new market models and instruments, IEX is positioning itself to play a larger role in India's energy landscape, despite the potential challenges posed by regulatory changes.

Historical Stock Returns for Indian Energy Exchange

1 Day5 Days1 Month6 Months1 Year5 Years
+1.32%-3.80%-32.28%-22.83%-28.93%+124.26%
Indian Energy Exchange
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IEX Shares Plunge 9% Amid Market Coupling Concerns, Brokerages Slash Targets

1 min read     Updated on 28 Jul 2025, 10:48 AM
scanxBy ScanX News Team
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Overview

Indian Energy Exchange (IEX) shares fell 8.9% to Rs 132.15 due to ongoing market coupling concerns, despite recent strong quarterly results. The decline follows a previous 30% single-day drop after CERC approved market coupling regulations. Brokerages like Nuvama and Jefferies have lowered their target prices and expect IEX's market share to decrease significantly in the coming years. IEX reported a 25% increase in profit and 19% rise in revenue for the quarter, but long-term regulatory impacts are expected to outweigh short-term performance.

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*this image is generated using AI for illustrative purposes only.

Indian Energy Exchange (IEX) witnessed a sharp decline in its share price, dropping 8.9% to Rs 132.15, as ongoing concerns over market coupling continued to weigh heavily on investor sentiment. This recent fall comes on the heels of a brief 13% rebound following strong quarterly results, highlighting the volatile nature of the stock in light of recent regulatory developments.

Regulatory Shift Impacts Market Dynamics

The stock's turbulence can be traced back to a record 30% single-day plunge that occurred when the Central Electricity Regulatory Commission (CERC) approved market coupling regulations. This regulatory shift has raised significant concerns among market analysts regarding IEX's future market dominance and pricing power.

Brokerage Outlooks

Several brokerages have expressed caution about IEX's market position in light of these regulatory changes:

  • Nuvama:

    • Expects IEX's market share in Day-Ahead Market (DAM) and Real-Time Market (RTM) segments to decline from 99% to 70% by FY27
    • Reduced target price to Rs 133 from Rs 173
  • Jefferies:

    • Projects market share to fall from over 80% to 50% by FY28
    • Cut target price to Rs 105 from Rs 150

These revised outlooks reflect growing apprehension about the potential end of IEX's monopoly-like pricing power and the reshaping of market dynamics in the energy exchange sector.

Strong Quarterly Performance

Despite the market concerns, IEX reported robust quarterly results:

Metric Value Growth
Profit Rs 120.00 crore 25%
Revenue Rs 184.20 crore 19%

However, analysts believe that while these results are impressive, the long-term impact of the regulatory changes will likely overshadow short-term financial performance.

Market Implications

The approval of market coupling regulations by CERC is expected to fundamentally alter the competitive landscape of the energy exchange market in India. As IEX faces the prospect of reduced market share and pricing power, investors and industry observers are closely watching how the company will adapt to this new regulatory environment.

As the situation continues to evolve, stakeholders will be keenly observing IEX's strategies to maintain its market position and financial performance in the face of these regulatory headwinds.

Historical Stock Returns for Indian Energy Exchange

1 Day5 Days1 Month6 Months1 Year5 Years
+1.32%-3.80%-32.28%-22.83%-28.93%+124.26%
Indian Energy Exchange
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