IEX Shares Surge 4% on Robust Power Trade Volumes, SEBI Greenlights Electricity Futures

IEX shares witnessed a decent gain of over 3% on Monday after the company reported a sharp rise in electricity trade volumes. Adding to the overall positive sentiment was the Securities and Exchange Board of India’s (SEBI) recent approval for the launch of electricity futures.

At 01:10 pm, Indian Energy Exchange Ltd shares were trading at ₹209.17 price level, up by 3.46% on the National Stock Exchange.

The company's revenue figure increased from ₹1,986 million in FY17 to ₹5,373 million in FY25, signalling a compound annual growth rate (CAGR) of 13%. The figure was largely in line with the power exchange market’s 15% CAGR over FY17–FY24. Meanwhile, Ebitda figure rose from ₹1,435 in FY17 million to ₹4,537 million in FY25. During the same period, Ebitda margin improved from 72% to 84%.

The market watchdog's recent approval to launch electricity derivatives has further added to the overall momentum in share price action.

So far this year, IEX shares have surged by nearly 16% on the bourses.

IEX Share Price Outlook

In the last 6 months period, Indian Energy Exchange Ltd. shares have witnessed a double-digit rise of 13% on the bourses. Analysts are expecting a rise in trading volumes moving ahead, owing to a strong surge in power demand and other factors.

On an annual basis, the shares of the company have rose over 26% on the Bombay Stock Exchange.

"Looking ahead, with rising power demand and an increasing share of exchange-based transactions in the total electricity market, we expect the volume traded through the exchange to grow at a CAGR of 13% during FY25-28. This is estimated to drive growth in revenue, and PAT at CAGRs of 16%, and 14%, respectively, over the same period," JM Financials stated in its report.

The brokerage firm has initiated its coverage on IEX with a 'Buy' rating and a target price of ₹231.