IEX Q4 FY26: Record electricity volumes, steady profitability, and a regulatory crossroads

Indian Energy Exchange (IEX) closed Q4 FY26 with its highest ever quarterly traded electricity volume, even as power prices softened due to improved sell-side liquidity. For the quarter ended March 2026, the company reported consolidated revenue of 196.4 crore versus 174.6 crore in Q4 FY25. Profit after tax rose to 129.8 crore from 117.1 crore.

For the full year FY26, IEX reported consolidated revenue of 747.0 crore, EBITDA of 671.2 crore, and profit after tax of 492.9 crore. Electricity volumes for FY26 reached 141.1 billion units, up 17% year on year, while renewable energy certificates (RECs) traded were 187 lakh, up 5%.

Volumes rise as prices fall

IEX highlighted that India’s power demand was broadly flat in FY26 at 1,709 billion units, yet exchange-traded volumes across power exchanges remained meaningful at 143 billion units. The company emphasized a strong historical correlation between overall power demand growth and exchange volumes.

Prices on the exchange declined for the third straight year, with the presentation showing FY26 DAM MCP at 3.59 per unit and RTM MCP at 3.86 per unit. Management attributed the softer prices to ample sell-side liquidity, stating DAM sell bids in Q4 FY26 increased about 49% year on year.

Product-wise, IEX’s FY26 mix was led by Day-Ahead Market (39%) and Real-Time Market (34%), with Green (7%), Term-Ahead (6%), and DAC (2%). Certificates accounted for 12% in the product mix representation.

Policy tailwinds and product pipeline

The presentation and concall placed significant emphasis on structural drivers for deepening electricity markets, including higher electrification, renewables integration, and evolving market models like battery storage arbitrage, firm dispatchable renewable energy (FDRE), and contract-for-difference (CfD) structures.

Management highlighted multiple regulatory developments it believes could expand the market: a proposal to extend Term Ahead Market contracts up to 11 months, a petition for Green RTM, and a petition for Peak DAM and Peak RTM segments. In each case, management stated the matter is with CERC and orders are reserved.

The company also discussed REC market reforms such as fungibility, elimination of floor price, and a large REC inventory cited at about 3.9 crore certificates in the presentation.

Market coupling: uncertainty remains

A key overhang discussed extensively in the concall was market coupling. Management noted that CERC issued draft market coupling regulations on April 17, 2026, proposing Grid India as the market coupling operator, and sought stakeholder comments till May 16, 2026. Management stated that timelines for final regulations are uncertain.

On investor concerns around competitive dynamics under coupling, management emphasized customer loyalty, service layers such as analytics and APIs, and the fact that exchanges would still handle customer interface and settlement if coupling is implemented, with price discovery potentially shifting to the coupling operator.

Diversification: IGX, I-RECs, and coal exchange exploration

IGX, the Indian Gas Exchange, completed five years of operations in FY26. Management stated IGX traded 18.6 million MMBtu in Q4 FY26, down 8% year on year due to Middle East supply disruptions beginning March. For FY26, IGX traded 76.8 million MMBtu, up 28% year on year, and reported FY26 profit after tax of 41.9 crore.

Management cautioned that volumes could remain impacted in the near term given geopolitics and higher gas prices, but indicated the potential for improvement from Q2 onward.

ICX, the group’s I-REC issuer entity, issued 179 lakh I-RECs in FY26 (over 200% growth year on year) and reported revenue of 7.7 crore for the full year.

Separately, the company stated that its board has given in-principle approval to explore establishing a coal exchange, aligned with proposed coal regulations. Management noted that coal market sizing and the final model depend on final regulations, and acknowledged logistics and quality challenges.

Takeaways

IEX ended FY26 with record quarterly electricity volumes, rising profits, and continued strength in its core marketplace model. The near-term investor focus is likely to remain on regulatory outcomes, especially market coupling and approvals for new products. At the same time, management continues to position the company for a broader energy market role through gas trading, I-REC issuance, and the exploration of a coal exchange.