Indian Energy Exchange (IEX IN) – Q4FY26 Result Update – Good volume growth, but risk from market coupling – HOLD
Published on 26 Apr 2026
IEX reported Q4FY26 PAT of INR 1,240 mn, up 11% YoY, was below our and consensus estimates by 8%. This is driven by lower other income. Total volumes for 4QFY26 were 46.6 BU, up 21% YoY, driven by growth across all products barring TAM market, with this FY26 volume stood at 160 BU, up 15% YoY. To tackle the risk of market coupling company is now diversifying its portfolio by entering in proposed ICX (Indian Coal Exchange). IGX and the proposed ICX offer IEX diversification beyond electricity, reducing dependence on power volumes and mitigating market coupling risks. CERC has released draft on market coupling. Though actual timeline is delayed but still remains on cards. Given the expected moderation in volume growth to ~10% post market coupling from ~20% CAGR over FY20–25, we believe IEX is likely to trade at a lower valuation multiple versus historical levels. We retain have ‘HOLD’ rating with TP of Rs135, based on 20x FY28E EPS.
