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IEX Delivers Solid Growth in Q1 FY?26

Posted by admin on 2025-07-10 12:06:18 |

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India’s energy trading platform, IEX, has reported a robust performance in Q1 FY26, with electricity volumes surging 15% YoY and green market activity soaring. Strong REC demand, falling prices, and a shift toward real-time trading signal a dynamic transformation in India’s evolving power market landscape.

·        Total electricity traded in Q1 FY 26 reached 32,382 million units (MU), up 15% year-on-year from Q1 FY 25.

·        Real‑Time Market (RTM) soared 41% YoY, while the Green Market expanded 51% YoY.

·        A strong uptick in Renewable Energy Certificates (REC) trading—52.65 lakh units, marking a remarkable 149% YoY increase.

·        Average Day-ahead Market (DAM) price eased by 16% YoY, down to approximately ₹4.41/unit.

·        Drivers include early monsoon rains boosting hydro output, rising wind capacity, and moderated demand during cooler summer months.

·        Quarterly Green Market volume hit 2,660 MU (+51% YoY), reflecting rising corporate and institutional procurement of clean energy.

·        REC trading skyrocketed to 52.65 lakh units, showing strong compliance drive among obligated entities.

·        Certificate clearing prices hovered between ₹350–₹360 each.

·        The surge in RTM vs. softer DAM volumes indicates a structural shift towards flexible real-time procurement.

·        Price softening is attributed to:

o   Early monsoon rains, raising hydro and wind generation.

o   Lower industrial demand in cooler conditions.

o   Ample supply from renewables.

·        Notably, during heavy rains on May 25, RTM prices plunged to ₹1.53/unit, with certain time blocks seeing near-zero rates

Outlook & Strategic Insights

·        Analysts forecast continued double-digit volume growth for FY 26, driven by robust supply-side liquidity, new products like Green RTM, and Long-Duration Contracts (LDCs).

·        In FY 25, IEX hit a record 121 BU in traded electricity—a growth of 18.7% YoY.

·        Other growth avenues include expansion in gas trading via IEX’s subsidiary, and early moves into carbon and coal exchanges.

·        Operating profit slightly dipped QoQ to ₹94 crore (–5.3%), while net profit held steady near ₹96 crore (–0.3%).

·        Total income rose modestly to ₹123.6 crore (+1.9% QoQ).

·        Operating margin remained healthy at ~76%.

QoQ – Quarter on Quarter, YoY – Year on Year

Effect on eClouds:

As our eClouds consumers are actively trading power in IEX, we also channelize them to secure the most competitive rates available in the exchange, ensuring optimal benefits through IEX participation.