IEX Navigates Dynamic Energy Market with Strong Q2 FY26 Performance

Indian Energy Exchange Limited (IEX) has reported a robust performance for the second quarter of Fiscal Year 2026 (Q2 FY26), demonstrating resilience and strategic agility amidst evolving market conditions. The company, India's premier technology-led electricity marketplace, posted a consolidated total revenue of 183.3 crore, marking a 9.2% year-on-year growth. Profit after tax (PAT) saw an even stronger surge, increasing by 13.9% to 123.4 crore from 108.3 crore in Q2 FY25. This financial strength underscores IEX's robust business model and its ability to capitalize on the increasing demand for efficient energy trading solutions in India.

The quarter's performance was notably driven by a significant increase in electricity trading volumes, which grew by 16.1% year-on-year to 35.2 billion units. This growth is particularly impressive given that the overall power demand in India remained largely flat in the first half of FY26, primarily due to higher-than-average monsoon rainfall. The Real-Time Market (RTM) emerged as a key growth driver, with its volumes increasing by 39% year-on-year and, for the first time ever, surpassing the Day-Ahead Market (DAM) in terms of volume share. The RTM's ability to offer flexibility and immediate responsiveness has been crucial for distribution companies and open access consumers to manage short-term needs efficiently, often at lower prices than the DAM.

Financial Highlights: A Snapshot of Growth

The financial summary below illustrates the company's consistent growth trajectory and strong profitability.

(All values are in INR Crore. H1 FY25 and H1 FY26 represent half-yearly consolidated figures. Q2 FY25, Q1 FY26, and Q2 FY26 represent quarterly consolidated figures.)

Strategic Initiatives and Market Deepening

IEX is not just focused on its core electricity trading but is also actively pursuing diversification and market deepening initiatives. The company is awaiting CERC approval for extending Term Ahead Market (TAM) contracts up to 11 months, which is expected to shift volumes from the DEEP platform to exchanges. The proposed Green RTM and Peak Power Contracts are also in advanced stages, aiming to provide additional market avenues for renewable energy developers and facilitate trading during high-demand hours. These initiatives are crucial for integrating the growing renewable energy capacity and optimizing power procurement.

Furthermore, IEX is at the forefront of developing new energy markets. The International Carbon Exchange (ICX), formed in December 2022, is India's sole issuer of International Renewable Energy Certificates (I-RECs), having issued 82 lakh I-RECs in H1 FY26. This positions IEX as a key player in India's voluntary carbon market, supporting the nation's net-zero goals. The company is also actively involved in the government's plan to establish India's first Coal Exchange by FY 2026-27, with legislative changes already in motion. These diversification efforts into gas, carbon, and coal exchanges are designed to broaden IEX's revenue streams and solidify its position as a comprehensive energy marketplace.

Navigating Regulatory Landscape and Future Outlook

The regulatory landscape remains dynamic, with the CERC issuing draft regulations for carbon credit trading and amendments to General Network Access (GNA) regulations to improve network utilization for RE projects. While the CERC's order on market coupling for the Day-Ahead Market by January 2026 presents a significant regulatory shift, IEX has filed an appeal, indicating its commitment to navigating these changes strategically. Management has expressed confidence in adapting to new regulations and retaining its market share through continuous technology intervention and customer loyalty programs.

Looking ahead, IEX anticipates sustained growth, projecting electricity volume growth of 15-20% for FY26 and aiming to maintain an average growth of around 20% for FY27, driven by India's robust GDP growth and increasing electrification. The company also expects significant growth in the Indian Gas Exchange (IGX), with gas consumption projected to double by 2030. IEX's strategic focus on innovation, customer centricity, and market diversification, coupled with a favorable policy environment, positions it well for continued leadership in India's evolving energy sector.