Indian Energy Exchange (IEX) released its Q3 FY’26 Investor Presentation, highlighting sector updates, business performance, and future strategies. The presentation showcases IEX’s technology leadership, market position, and diversification efforts into gas and carbon trading. Key themes include renewable energy integration, demand growth, and regulatory developments. IEX aims to lead the energy transition with innovation and technology, maintaining a robust ecosystem and growth trajectory.
Power Sector and IEX Overview
The Indian power sector is witnessing a transition towards renewable energy, with renewables contributing 27% of generation. IEX plays a crucial role in this landscape, operating a technology-led electricity marketplace. The company boasts over 8,500 registered participants, 5,700 commercial and industrial clients, and 2,500 RE generators. IEX’s platform facilitates efficient trading of electricity, renewables, and certificates.
Key Product Mix and Pricing Trends
IEX’s product mix for 9M FY’26 includes Day-Ahead Market (DAM) at 38%, Real-Time Market (RTM) at 36%, and Green at 7%. RTM continues to show substantial growth, increasing by approximately 40% year-over-year. While power demand growth has been flat in 9M FY’26, prices have declined due to improved sell-side liquidity, which increased by 43% YoY.
Growth Drivers and Levers
IEX has identified several growth drivers, including increased power consumption, new regulatory developments (like TAM expansion and Green RTM), re-designing of the electricity market, and the energy transition. Diversity in demand and ample supply-side availability further support growth. Specific initiatives like the Draft National Electricity Plan (NEP) 2026 and REC fungibility are expected to boost market activity.
New Market Models and Opportunities
The company is actively involved in facilitating new market models such as FDRE (Firm Dispatchable Renewable Energy) and RTC (Round the Clock) RE, along with Battery Energy Storage Systems (BESS). These models are crucial for integrating renewable energy sources. The company is working to leverage market opportunities created by the shift towards renewable energy and storage.
Diversification and New Exchanges
IEX is diversifying its offerings through the Indian Gas Exchange (IGX) and the International Carbon Exchange (ICX). IGX has completed five years of operations and has 45+ registered members. ICX focuses on facilitating voluntary carbon trading and is the sole issuer for International Renewable Energy Certificates (I-REC) in India. Additionally, plans are underway to set up India’s first coal exchange.
Financial Performance Highlights
IEX’s consolidated financials show a strong performance with total revenue of Rs 482.8 Cr in 9M FY25 growing to Rs 550.5 Cr in 9M FY26. EBITDA stood at Rs 430.5 Cr in 9M FY25 and increased to Rs 495.2 Cr in 9M FY26. Profit after tax increased from Rs 312.1 Cr in 9M FY25 to Rs 363.1 Cr in 9M FY26
Customer Centricity and Technology
IEX focuses on customer centricity and technology advancements, including capacity building workshops, open access promotion, and a web platform (EnergX) offering digital on-boarding and analytics. The company is committed to continuous improvements in availability, security, resilience, and performance of its exchange platform through technology implementations and AI.
Source: BSE
