Financial Performance Highlights

FY2026 Performance:

  • Annual electricity trade volume: 141 billion units (17% YoY growth)
  • Consolidated revenue: ₹747 crore (13.6% YoY growth)
  • PAT: ₹492 crore (15% YoY growth)
  • Standalone IEX PAT: ₹474 crore
  • IGX PAT: ₹42 crore (28% YoY growth)
  • EPS: ₹5.33
  • ROE: 42-44%
  • Dividend payout: 65%

Q1 FY2027 Performance:

  • Electricity volume: 37.5 billion units (16% YoY growth)
  • Consolidated revenue: ₹202.8 crore
  • PAT: ₹134.8 crore (12% YoY growth)
  • IGX gas volume: 27.5 million MMBtu
  • IGX profit: ₹16 crore

Operational Highlights

Market Segments Performance:

  • Real-Time Market (RTM): 41% volume growth in FY26, now represents 34% of total volumes
  • Day-Ahead Market (DAM): Reduced to 39% of product mix from 95% in FY16
  • Term-Ahead Market and Green Market: 7-8% of product mix
  • Cross Border Trade: 3-5% monthly average transactions

Participant Base:

  • 9,000+ participants registered
  • All distribution utilities, renewable merchant generators, and conventional IPPs participating
  • 200+ registered clients on IGX

Regulatory and Policy Updates

National Electricity Policy (Draft):

  • Targets per capita electricity consumption of 2,000 units by 2030 and 4,000 units by 2047
  • Promotes cost-reflective tariffs, reduced cross-subsidies, and TOD pricing
  • Allows multiple licenses in same area for competition
  • Emphasizes resource adequacy at Center and State level
  • Proposes routing long-term PPAs through exchanges
  • Explores capacity markets in phased manner
  • Promotes demand response mechanisms and local energy markets

Market Coupling Status:

  • CERC order dated July 23, 2025 directed implementation of DAM coupling by January 2026
  • IEX challenged order at APTEL citing lack of transparency and 0.3% social welfare gain being insignificant
  • APTEL order dated February 13, 2026 stated IEX not aggrieved at this stage
  • Case now admitted in Supreme Court with hearing scheduled for July 27, 2026
  • Grid India raised concerns about implementation complexity, software robustness, and single point of failure

Other Regulatory Developments:

  • CERC staff paper on Capacity Market
  • Discussion paper on reducing RTM auction window from 15 to 5 minutes
  • LPSC rules driving 8 billion units volume from un-requisitioned surplus power

New Product Initiatives

Filed with CERC for Approval:

  • Green RTM Market (hearings completed, order reserved)
  • Peak Power Contracts for DAM and RTM (hearings completed, order reserved)
  • Term Ahead Market extension from 3 to 11 months (pending for 2+ years)

Pipeline Products:

  • Capacity markets (staff paper issued)
  • Carbon trading (expected by October 1, 2026)
  • Ancillary markets (secondary reserve)
  • Derivatives market (tie-up with MCX)

Growth Drivers and Opportunities

Electricity Market:

  • GDP growth projection of 6.6% for FY27 supporting electricity demand
  • Peak demand reached 271 GW in May 2026 with 12% increase
  • Installed capacity: 533 GW (275 GW renewable), projected to reach 958 GW by 2032 (66% renewable)
  • Market penetration potential: 25% of total generation (currently at 8-9%)

Battery Energy Storage Systems (BESS):

  • Battery costs reduced by 70% in 3-4 years
  • Merchant arbitrage of ₹4.5-₹8 available for 545 cycles annually
  • 2,200 MWh commissioned by ACME, 500 MWh by Juniper, 3,400 MWh by Adani on merchant basis
  • BESS VGF scheme with ₹9,000 crore support

Firm Dispatchable Renewable Energy (FDRE):

  • New tender model for profile-based renewable procurement
  • Requires 40-50% overcapacity creation, creating market opportunities

Contract for Difference (CfD):

  • SECI pilot for 500 MW CfD-based contracts
  • Market-based renewable capacity addition model

Diversification Initiatives

Indian Gas Exchange (IGX):

  • Completed 5 years of operations
  • FY26 volume: 76.8 million MMBtu (28% growth)
  • FY26 profit: ₹42 crore
  • DRHP filed for IPO to reduce IEX holding from 47.3% to 25% as per PNGRB regulations

Indian Coal Exchange:

  • Incorporated in June 2026 as separate company
  • Ministry of Coal rules prohibit e-auction platforms 6 months after exchange operation
  • Current market size: 120 million tonnes through e-auctions
  • Projected market size: 250-300 million tonnes by 2035
  • Application process for registration opened on July 15, 2026

Mineral Exchange:

  • Ministry of Mines draft regulations issued
  • Expected notification shortly

International RECs (I-REC):

  • Sole issuer in India through ICX subsidiary
  • 200% growth in FY26
  • Hourly time-stamping development underway
  • Acceptance for RE100, GHG Scope 2, and upcoming SBTi claims

Technology Initiatives

API Integration:

  • 70% of I-DAM cleared volume through bidding APIs
  • 50% of I-DAM volume through post-trade report APIs
  • Automated bidding solutions for RTM and other segments

AI and Advanced Solutions:

  • AI bidding assistance for distribution companies under development
  • Auto-bidding solutions for C&I consumers
  • AI-powered chatbot for market data (launch in current quarter)
  • AI-enabled Security Operations Center

Platform Enhancements:

  • End-to-end encryption for bid data confidentiality
  • Defense-in-depth cybersecurity solutions
  • Hot standby for RTM to handle 5-minute bidding windows
  • Next-day payout by 11 AM (₹40,000+ crore processed annually)

Financial Position

Consolidated Figures:

  • Net worth: ₹1,400 crore
  • Strong cash flows supporting organic and inorganic growth
  • 4-year revenue CAGR: 15%
  • 4-year PAT CAGR: 17.2%

Capital Allocation:

  • Dividend policy: 65% payout maintained
  • Buyback consideration under revised SEBI rules

Q&A Session Highlights

Market Coupling:

  • Legal recourse being explored while engaging with policymakers
  • Confidence in maintaining market share due to customer relationships and API integration
  • Implementation expected to take significant time due to complexity

RTM Growth:

  • Expected to surpass DAM volumes due to renewable variability
  • Projected 25-30% CAGR growth

Coal Exchange:

  • Multiple players expected to apply for licenses
  • IEX brings 18 years of spot exchange experience
  • Fees expected to be higher than current e-auction platforms

Clearing and Settlement:

  • No separation requirement under PSS Act
  • Registration process with RBI being explored

Forward-Looking Statements

Growth Outlook:

  • 25% market penetration target achievable in 5-6 years
  • Multi-layered markets development underway
  • BESS arbitrage opportunity for 3-5 years

Strategic Focus:

  • Organic growth through volume increase and new products
  • Inorganic expansion into new energy commodities
  • Platform business model with high margins and strong cash flows