Group Overview and FY26 Performance

Indian Energy Exchange Group positions itself as "India's Energy Exchange Ecosystem" with multiple exchanges:

  • IEX (Power): Established 2008, publicly listed 2017, India's premier power exchange with 9,100+ participants. FY26: Electricity volumes 141 BU, Consolidated PAT INR 493 Cr.
  • IGX (Gas): Established 2020, India's first and only natural gas exchange with 50+ registered members and 200+ registered clients. FY26: Gas volumes 76.8 million MMBtu, PAT INR 42 Cr. IGX has filed DRHP with SEBI and BSE for its proposed IPO.
  • ICX (I-REC): Established 2022, India's only International REC (I-REC) issuer. FY26: 179 lakh I-RECs (+200% YoY), PAT INR 4.7 Cr.
  • Coal Exchange: Incorporated in 2026. Ministry of Coal announced Coal Exchange Rules, 2026, providing foundation for a competitive, multi-seller coal market.

Market Opportunity and Growth Drivers

The presentation outlines several key growth drivers shaping India's energy markets:

  • Electrification of Economy: Per capita electricity consumption target 2,000 kWh (2030); 4,000 kWh (2047)
  • Energy Transition: RE generation mix to increase from 26% in FY26 to ~40% by FY32
  • Gas Market Expansion: Share of natural gas in energy basket targeted to increase from ~6% to 15% by 2030
  • Coal Demand Growth: To grow from 1.2Bn to 2.0Bn MT by FY35
  • Structural Forces: Technology progress, policy/regulatory framework, changing preferences, and new market models

Power Sector Context

  • Generation Mix FY26: Thermal 70.7% (down from 74.5% in FY25), Renewables (incl. hydro) 25.9% (up from 22.1% in FY25)
  • Transmission: Inter-regional transmission capacity 120 GW (FY26); 168 GW (FY32), 99.9% times no congestion
  • Distribution: AT&C losses down to 15% in FY25 from 16% in FY24; 14th Annual Integrated Rating showed A+ and A ratings - 31 FY'25 v/s 16 in FY'24

IEX Business Overview

  • Nationwide, automated trading platform for physical delivery of electricity, renewables & certificates
  • CERC regulated, ISO 9001:2015, ISO 14001:2015, ISO 27001:2022 certified
  • From 1 product in FY09 to over 20 products in FY26
  • Participant Ecosystem: 9,100+ registered participants, including 5,300+ Commercial & Industries, ~3,000 RE Generators & Obligated Entities, 1,100+ Conventional Generators, 120+ Discoms (All), 200+ ESCert Entities, 43+ Cross Border Portfolios
  • Product Mix FY26: RTM 34%, Green 7%, TAM 8%, DAM 51%
  • RTM grew 41% YoY in FY26 (~55 BU), now 34% of electricity volumes

Detailed Growth Levers

1. Demand Increase
  • High GDP growth of 6-7% expected to drive power demand
  • FY2032 forecast demand ~2,700 BU
  • Peak demand of 388 GW by 2032
  • Summer peak power demand 271 GW (Q1 FY26 - all time high)
  • EVs, data centers, AC consumption (to grow 9X by 2050 per IEA) to drive demand growth
2. Optimization Potential
  • Discoms can save up to ~10% cost through exchange procurement
  • States actively saving: Andhra Pradesh (Rs. 2350 Cr, FY20-FY21), Telangana (~Rs. 700 Cr, FY26), Uttarakhand (Rs. 285 Cr net effective savings, FY26), West Bengal, Punjab, Maharashtra
  • In Q1 FY27, prices dipped to near-zero levels in specific daytime slots across roughly 31 days
3. Structural Load Shifts and Regional Diversity
  • Agriculture power demand of 290BU with potential to shift to solar hours
  • ~50 GW of load shift potential to solar hours available till FY35
  • Regional diversity in consumption and generation patterns across India
4. Increasing Sell Side Liquidity
  • Thermal capacity of 41 GW under construction; 22 GW awarded; 16 GW in planning
  • Coal production expected at 500 million tonne by FY35 from captive and commercial mines (crossed 200 million tonne in FY26)
5. New Market Models - BESS & PSPs
  • Targeted addition: BESS 37 GW/147 GWh (FY32), PSP 44 GW/236 GWh (FY32)
  • Financial support of Rs 9,160 Cr earmarked for BESS VGF schemes
  • ACME (Rajasthan, 3200 MWh), Juniper (Rajasthan, 500 MWh), Adani (Gujarat, 3400 MWh) adding ESS capacities
  • Annual arbitrage opportunity: Rs. 4-5/kWh with 500+ cycles/year
  • IEX has proposed separate contracts for BESS - Peaking Power DAM and RTM Contracts
6. New Market Models - FDRE & RTC
  • ~22 GW FDRE projects awarded
  • Discoms showing interest in firm RE with storage
  • Energy over-capacity goes up to 40-45% during solar hours, expected to increase sell liquidity
  • Projects allow buy from green market ~5% on annual basis, increasing buying liquidity
7. New Products and Policy Initiatives
  • Green RTM: Petition filed with CERC for launching
  • Peak Contracts: Petition filed with CERC for Peak DAM and Peak RTM Contracts (order reserved)
  • TAM up to 11 Months: To help shift DEEP volume (currently ~40 BU) to exchanges
  • LPSC Rules: Generators mandated to offer un-requisitioned (URS) power on exchanges
  • Cleared volumes: 8.0 BUs (FY26), 3.0 BUs (Q1 FY27)
  • Carbon Trading: Ministry of Environment issued final notifications on Greenhouse Gas Emission Intensity targets; trading of Carbon Credit Certificates on power exchanges expected in FY27
8. Policy Initiatives
  • Draft National Electricity Policy 2026: Focus on market deepening, system modernization, supply freedom, derivatives market, India Energy Stack, regulatory interventions
  • Draft Electricity (Amendment) Bill, 2025: DISCOM reforms, open access expansion, rationalized tariffs

Market Coupling Update

  • CERC issued order dated July 23, 2025 on market coupling of Day Ahead Market to be implemented in January 2026
  • IEX challenged order in APTEL on August 28, 2025 on grounds of insignificant gains, process violation, lack of transparency
  • APTEL order dated February 13, 2026 stated market coupling cannot be implemented without regulations, so IEX not aggrieved party at this stage
  • IEX filed plea in Supreme Court; appeal admitted for hearing
  • CERC issued Draft Regulations on April 17, 2026 proposing Grid India as Market Coupling Operator
  • Grid India observations: clarification on scope required, robust clearing engine needed, single point of failure concern, steering committee recommended

Technology and Customer Solutions

  • Automated Bidding APIs: 72% of cleared volume in I-DAM contributed by API users
  • Trade Report APIs: 56% of cleared volume in I-DAM contributed by API users
  • Fast Payout: Rs. 40,000+ crores payout to sellers in FY26 without delay
  • Security: Encryption, defense in depth security, 24x7 SOC monitoring
  • AI Adoption: AI bidding assistant for Discoms, auto bidder for C&I, AI chatbot, AI-powered SOC
  • Availability: Redundancy at multiple levels, hot standby for RTM, robust BCP

Coal Exchange Update

  • Ministry of Coal notified Rules for Coal Exchange on June 4, 2026
  • Existing e-auction platforms allowed to operate only up to 6 months from operationalization of 1st Coal Exchange
  • Opportunity size in first year: ~100 million tonne
  • Registration portal for license application launched on July 15, 2026
  • Growth drivers: shift of existing e-auction volume, coal demand growth, captive/commercial mines production growth
  • IEX well positioned with 18 years exchange operation experience and deep customer engagement

Financial Performance

  • Consolidated PAT Trend (INR Cr): FY26: 493 Cr
  • EPS Performance: Showcased but specific numbers not provided in presentation
  • Expenses Performance: Showcased but specific numbers not provided in presentation

Investment Thesis

  • Structural demand boom: India's power demand set to 1.5x by 2032
  • Massive penetration headroom: Exchanges still <10% of India's power volumes vs mature markets >50%
  • Robust business model: Asset-light, high-margin platform, strong free cash flow
  • Expansion opportunities: Organic (volume growth, new products), Inorganic (Gas, Coal, ICX, Minerals Exchange)
  • Minerals Exchange: Draft Rules announced, final expected. Types: Iron, Bauxite, Limestone, Manganese

CSR Initiatives

  • Created direct impact on 31,620 individuals
  • Extended benefits to more than 3.5 lakh indirect beneficiaries

Case Studies (Annexure)

The presentation includes several case studies demonstrating cost optimization through exchange procurement:

  • Telangana: Achieved cost savings of INR 700 crore through data-driven power exchange strategy
  • Uttarakhand: Saved over Rs. 160 crore and generated additional revenue of Rs. 125 crore through REC sales in 9MFY26
  • West Bengal: Procured nearly 7 BU from power exchanges in 9MFY26 (25% higher YoY) at average purchase cost of ~Rs. 3.85/unit
  • Punjab: Power purchase volumes from exchanges have grown at robust CAGR of over 50% in past five years