Revenue ₹174 Cr (+12.5% YoY)
The story so far
Indian Energy Exchange has delivered consistent volume-led growth over the past eight quarters, with electricity volumes expanding from 30.1 BU in Q4 FY24 to a record 39.4 BU in Q4 FY26, a 31% increase. The dominant trend is strong growth driven by regulatory tailwinds—mandatory sale of unrequisitioned surplus power, stricter DSM norms, and lower coal prices—which have boosted sell-side liquidity and attracted more buyers. The engines of growth are the Real-Time Market (RTM), which grew 48% YoY in Q4 FY26 to account for 39% of volumes, and the green market, which doubled in Q4 FY25. Revenue rose from ₹121 Cr in Q4 FY24 to ₹174 Cr in Q4 FY26, while PAT grew from ₹97 Cr to ₹130 Cr, though revenue growth has lagged volume growth due to fee pressure and lower REC volumes. Management has consistently guided for 15-20% annual volume growth and largely delivered, with FY25 volumes exceeding the >15% target. However, promises on new product approvals (11-month contracts, Green RTM) have repeatedly missed timelines. The unresolved question heading into the next quarter is whether the market coupling draft regulations, with comments due May 16, 2026, will fundamentally alter IEX's near-monopoly in day-ahead markets and compress its margins.
Key engines
The open question
Will the market coupling draft regulations, with comments due May 16, 2026, fundamentally alter IEX's near-monopoly in day-ahead markets and compress its margins?