Indian Energy Exchange FY26 Annual Earnings Summary
4 quarters covered · ₹616 Cr revenue · ₹493 Cr PAT · 84.5% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter results and commentary indicate the prior promise was delivered or materially on track.
Q4 FY26Risks flagged during the year
CERC order to couple day-ahead markets by Feb 2026 could reduce IEX's near-100% market share in DAM, as competitors may gain volume.
Q2 FY26 · highCERC order mandates DAM coupling by Jan 2026; IEX has appealed in APTEL. If implemented, it could reduce IEX's market share and pricing power.
Q3 FY26 · highIf APTEL rules against IEX, market coupling could be implemented, potentially reducing IEX's market share and pricing power.
Q4 FY26 · highCERC's draft regulations on market coupling could alter IEX's role in price discovery, potentially impacting market share and margins.
Q1 FY26 · mediumAnalyst raised possibility of rivals cutting fees to gain share; management deflected, saying they will 'deal with it when we reach there'.
Q1 FY26 · mediumManagement noted many operational aspects (common software, settlement) need resolution; timeline may slip, creating uncertainty.
Q2 FY26 · mediumRevenue grew only 9.2% vs volume growth of 16.1% due to lower REC volumes and fee reduction from INR 40 to INR 20 per certificate.
Q2 FY26 · mediumKey petitions like Green RTM, 11-month TAM contracts, and peak DAM/RTM segments are pending regulatory approval, delaying potential volume catalysts.
Q3 FY26 · mediumCERC's proposal allowing entities to deposit money instead of buying RECs could reduce REC demand and volumes.
Q3 FY26 · mediumSubdued power demand growth due to weather and agricultural factors may limit volume growth despite optimization opportunities.
Q4 FY26 · mediumSupply disruptions from the Middle East have reduced IGX volumes; Q1 FY27 may see flat growth.
Q4 FY26 · mediumFY26 electricity demand was nearly flat due to weather; future demand depends on economic growth and weather patterns.
What changed through the year
Q1 FY26 · Market coupling implementation by February 2026
CERC ordered coupling of day-ahead markets by Feb 2026; IEX management expressed skepticism about timeline feasibility due to operational complexities.
Q1 FY26 · Green RTM and term-ahead contract approvals awaited
Petitions for green RTM and 3-11 month term-ahead contracts are pending CERC approval; hearings completed for green RTM.
Q1 FY26 · Coal exchange and EPR platform development
Stakeholder comments closed for coal exchange; awaiting MMDR amendment. EPR platform EOI filed with CPCB, decision pending.
Q2 FY26 · FY26 volume growth of 15-20%
Management expects to maintain electricity volume growth between 15-20% for the remaining fiscal year.
Q2 FY26 · IGX stake reduction to 25% by Dec 2025 with extension request
IEX has applied for a 1.5-year extension to reduce its IGX equity stake from 47.5% to 25% as per PNGRB regulations.
Q2 FY26 · Carbon credit trading market size comparable to REC market
Management expects the carbon credit trading market to be as big as the REC market once regulations are finalized.
Q3 FY26 · Power exchange volume growth of 15-20% annually
Management expects IEX electricity volumes to grow at 15-20% per annum, consistent with historical trends.
Q3 FY26 · Gas exchange volume growth of 25-30% over 4-5 years
IGX volumes are expected to grow at 25-30% annually over the next 4-5 years, driven by lower gas prices.
Q3 FY26 · IGX IPO planned within this fiscal year
IEX plans to proceed with the IPO of Indian Gas Exchange this fiscal year, subject to regulatory approvals.
Q4 FY26 · FY27 volume growth of 15-20%
Management expects to maintain 15-20% volume growth in FY27, supported by rising power demand and new capacity additions.
Q4 FY26 · IGX volumes to recover from Q2 FY27
IGX volumes may be flat in Q1 FY27 due to Middle East disruptions but should recover from Q2 onwards.
Q4 FY26 · Coal exchange exploration
Board has approved in-principle to explore establishing a coal exchange, pending final regulations from Ministry of Coal.