IEX Q3 Results-Revenues Up 13.7%, PAT Up 22.8%

Indian Energy Exchange (IEX), the largest electricity trading exchange in India, has reported its results for the third quarter of FY25. The firm reported electricity volumes of 30.5 Billion Units in Q3FY’25, a 15.9% increase from 26.3 BUs in Q3 FY’24.

• Renewable energy certificates in Q3FY’25 at 26.52 lakhs, increased 31% from 20.24 lakh in Q3FY’24.
• Consolidated Revenue in Q3FY’25 at Rs 160.5 Cr, increased 13.7% from Rs 141.2 Cr in Q3 FY’24.
• Standalone Profit After Tax in Q3 FY’25 at Rs 103.1 Cr, increased 15.5% from Rs 89.3 Cr in Q3FY’24.
• Consolidated Profit After Tax in Q3FY’25 at Rs 107.3 Cr, increased 16.9% from Rs 91.8 Cr in Q3FY’24.
• Consolidated Profit After Tax for 9MFY’25 at Rs.312.1 Cr, increased by 22.8% from Rs.254.1 Cr in 9M FY24.

BUSINESS UPDATE

The firm remains well poised to capitalize on growth in India’s power sector, rising demand, and its own offering of products to support those. Electricity demand at 393 BUs during the third quarter was higher by 3% YoY.  For the 9MFY25, the country’s electricity demand at 1,279 BU was higher by 5% over the same period last year. This is expected to pick up further to the end of this Financial year.

With ample availability of coal at a nominal premium of 10% to 20%, there are no supply-side issues for thermal plants.

Adequate availability of fuel in this quarter led to higher liquidity on the exchange platform as the sell quantum increased by 62% YoY in the day-ahead market leading to the softening of prices. For Q3FY’25, prices in the Day-Ahead market averaged Rs 3.71/unit, a decline of nearly 26% year-on-year. These prices presented an opportunity for Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges.

Electricity Trade Volume 

During the quarter, IEX achieved an electricity traded volume of 30.5 BU, marking a 15.9% year-on-year increase and traded 26.52 lakh Renewable Energy Certificates (RECs) recording a 31% year-on-year increase.

Further, CERC has issued draft procedures for trading of Carbon Credit Certificates for both obligated as well as non-obligated entities through power exchanges. This should result in the trading of Carbon Credit Certificates on IEX in the near future.

On the gas market front, the Indian Gas Exchange (IGX) traded total volume of 162 lakh MMBtu for Q3 FY25 as compared to 84 lakh MMBtu in Q3FY24, a growth of 93% YoY. The profit after tax for IGX for Q3 FY25 was at Rs. 8.3 Cr, compared with Rs. 7.4 Cr in Q3 FY’24, a growth of 13% YoY. For the nine months till December, FY25 IGX PAT came at Rs.22 Cr, higher by 18% over the same period last fiscal year.

IEX Stock

The IEX stock traded on the BSE and NSE continued to trade higher by over 2% at Rs 171, as the market digests these results. The firm, while having a robust business model with a dominant market share, has been under the shadow of a move to enforce market coupling on power trading. For market watchers, such a move would severely undermine IEX’s dominant position built up over the years, and hurt margins.