IEX Reports 25.5% Volume Growth in July Despite Price Decline and Market Coupling Concerns

1 min read     Updated on 05 Aug 2025, 08:21 AM
scanxBy ScanX News Team
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Overview

Indian Energy Exchange (IEX) saw a 25.5% year-on-year increase in electricity traded volumes for July, reaching 12,664 million units. The Day-Ahead Market volumes rose 9% to 5,510 MU, while the Real-Time Electricity Market volumes surged 53% to 5,109 MU. Despite volume growth, prices declined with Day-Ahead Market clearing prices falling 16% to ₹4.18 per unit and Real-Time Market prices dropping 23% to ₹3.83 per unit. The Green Market segment traded 1,025 MU, showing 4% growth. However, Renewable Energy Certificates saw a 48% decrease. IEX faces potential challenges from the upcoming implementation of Market Coupling norms by January 2026, which could impact its dominant market position.

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

Indian Energy Exchange (IEX) reported a 25.5% year-on-year increase in electricity traded volumes for July, reaching 12,664 million units. This marks a significant milestone in the country's energy market, showcasing the exchange's robust performance.

Market Segment Performance

The Day-Ahead Market (DAM) volumes rose 9% to 5,510 MU, while the Real-Time Electricity Market (RTM) volumes surged an impressive 53% to 5,109 MU. The RTM segment emerged as a standout performer, setting a new benchmark with the highest single-day volume of 204.6 MU recorded on July 27.

Pricing Trends

Despite the volume growth, prices declined significantly:

  • Day-Ahead Market clearing prices fell 16% to ₹4.18 per unit
  • Real-Time Market prices dropped 23% to ₹3.83 per unit

The lower prices were attributed to higher supply-side liquidity on the exchange platform, presenting opportunities for Discoms and Commercial & Industrial consumers.

Green Energy Initiatives

The Green Market segment, comprising Green Day-Ahead and Green Term-Ahead Market segments, traded 1,025 MU in July, showing a 4% growth. However, Renewable Energy Certificates (RECs) saw a 48% decrease, with 16.26 lakh certificates cleared at ₹360.00 per certificate.

Market Coupling Concerns

IEX stock has declined over 30% in the past month following the Central Electricity Regulatory Commission's (CERC) approval of Market Coupling norms implementation. Under these regulations:

  • Coupling of the Day-Ahead Market will be implemented by January 2026
  • Different power exchanges will act as Market Coupling Operators on a round-robin basis
  • The market coupling system will aggregate buy and sell orders from all exchanges to discover uniform clearing prices across platforms

This development threatens IEX's dominant position as the preferred price discovery platform and could potentially impact its current 85% spot market share by shifting volumes to competitive exchanges.

Stock Performance

Despite the concerns, IEX shares traded 0.24% higher at ₹134.30 on the day of reporting.

As IEX continues to facilitate efficient price discovery and enhance the accessibility and transparency of India's energy market, the company faces both opportunities for growth and challenges from regulatory changes. The coming months will be crucial in determining how IEX adapts to the evolving landscape of India's power trading sector.

Historical Stock Returns for Indian Energy Exchange

1 Day5 Days1 Month6 Months1 Year5 Years
-0.77%-3.06%-34.20%-28.03%-33.71%+114.38%
Indian Energy Exchange
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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
-0.77%-3.06%-34.20%-28.03%-33.71%+114.38%
Indian Energy Exchange
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