Indian Energy Exchange (IEX IN) – Q1FY27 Result Update – Volume-led beat aided by RTM; coupling risk lingers on – HOLD
Published on 25 Jul 2026
IEX reported Q1FY27 PAT of INR 1,267 mn, up 12% YoY, with electricity volumes at 37.5 BU, up 16% YoY, led by RTM. On market coupling, IEX's plea against the APTEL order has been admitted for hearing by the Supreme Court, keeping the legal route live, while management stayed non-committal on implementation timing given the extent of software, reliability and settlement validation required, extending the runway on the uncoupled earnings base. Diversification is now better dated: IGX filed its DRHP on July 14 for a 22.3% OFS taking IEX's stake to the 25% regulatory ceiling, while Coal Exchange Rules notified on June 4 will route all coal trading including Coal India's e-auction through an exchange within six months of the first licence going live, opening a ~120 MT market scaling to ~250 MT by FY35. In the analyst meet, management indicated that they could consider share buyback. The company holds cash and equivalent of INR 13bn and have planned a stake sale in IGX. We retain HOLD rating on an unchanged TP of INR135 (20x FY28E EPS).
