Indian Energy Exchange (IEX IN) – Q2FY27 Result Update – Steady quarter; coupling pushed further out – HOLD
Published on 30 Oct 2026
IEX reported Q2FY27 PAT of INR 1,328 mn, up 9% YoY, with electricity volumes at 39.7 BU, up 12.7% YoY, including REC, volume are +3% YoY. On market coupling, CERC is yet to notify final regulations, and management said implementation is definitely not likely this calendar year. The CMD estimated another 1.5–2 years, given the software, settlement and mock-trial work required across exchanges, extending the runway on the uncoupled earnings base. The proposed cut in RTM gate closure to 50 minutes would make coupling in RTM even harder. On capital allocation, management said it will definitely consider a buyback given the low share price. IEX plans to sell down IGX from 47.3% to 25% by December 2026, with the IPO on track. The company holds cash and equivalents of ~INR 12 bn. We retain HOLD rating with a lower TP of INR 112 (from INR 135), valuing the stock at 15x average FY28E–FY29E EPS and lower our volume/PAT assumption due to weakness in REC volume.
