Shares of Indian Energy Exchange staged a sharp rebound after the rout seen in the last session and surged 13% on July 25 as investors found some comfort in the company’s strong Q1 numbers.
IEX reported a standalone net profit of ₹113 crore for the June quarter, a 21% spike from ₹93 crore in the same period last year. The growth was sparked by higher electricity volumes and a sharp rise in renewable certificate trading, even as average market prices softened.
Revenue from operations rose 13% year-on-year to ₹140 crore, compared with ₹124 crore in the first quarter of FY25. Electricity volumes on the exchange rose 15% to 32.4 billion units (BUs) during the quarter. Trading in Renewable Energy Certificates (RECs) also saw significant traction, with volumes surging 149% year-on-year to 52.7 lakh units.
The company attributed the healthy market activity to stable fuel supply and favourable power generation conditions. India’s peak power demand reached 242 gigawatts (GW) on June 12, lower than the projected 277 GW, as early monsoon showers and unseasonal rainfall eased temperatures across several regions. This tempered the spike in demand typically seen during peak summer.
IEX said that the combination of steady supply, improved generation mix and moderated demand helped keep prices in check, supporting overall market efficiency in the first quarter of the financial year.
This comes after shares of IEX crashed close to 30% in the last session, following the CERC’s decision to implement market coupling from January 2026. The decision to go ahead with market coupling stands to threaten IEX’s moat as the best price discovery platform for electricity trading. With that, the company’s dominant market share is also likely to shrink as the CERC’s move is expected to shift some trading volumes toward rival platforms, further affecting IEX’s financials.
The uncertainty hanging over the implementation of market coupling had been a major overhang on the stock, and hence, its clearance opened floodgates of selling pressure in the last session.
