IEXNSENovember 07, 2025

Indian Energy Exchange Limited

7,879words

105turns

13analyst exchanges

8executives

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Management on call

Satyanarayan Goel

CHAIRMAN AND MANAGING DIRECTOR

Rohit Bajaj

JOINT MANAGING DIRECTOR

Vineet Harlalka

CHIEF FINANCIAL OFFICER

Amit Kumar

HEAD (OPERATIONS, NEW

Aparna Garg

HEAD (INVESTOR RELATIONS &

Aditya Wali

INVESTOR RELATIONS

Rohan Gheewala

AXIS CAPITAL LIMITED

S. N. Goel

Key numbers — 40 extracted

7.8%

vel, India remains the fastest-growing major economy in the world, posting a strong GDP growth of 7.8% in the 1st Quarter of fiscal 2026. This trajectory has been powered by strong domestic demand, in

rs,

powered by strong domestic demand, investment activity and a steady expansion of all major sectors, including industrial, services, agriculture and construction. The Q1 number offers optimism amidst

and opportunity in the international landscape. The Indian Metrological Department has reported 8% higher rainfall during this year's monsoon, the highest rainfall in five years. This good monsoon

6.8%

c activity going forward. Consequently, the RBI has revised India’s FY '26 GDP growth forecast to 6.8%, up from its earlier forecast of 6.5%. On the power sector front, weather c

6.5%

, the RBI has revised India’s FY '26 GDP growth forecast to 6.8%, up from its earlier forecast of 6.5%. On the power sector front, weather continued to play a key role in this qu

3.4%

mand growth during the second quarter remained moderate with a power demand of 449 BUs, higher by 3.4% on year-on-year basis. In the first six months of FY '26, however, power demand has remained larg

894 billion

year basis. In the first six months of FY '26, however, power demand has remained largely flat at 894 billion units compared with 886 billion units in H1 FY '25. On the fuel side, ample fuel has been availab

886 billion

ths of FY '26, however, power demand has remained largely flat at 894 billion units compared with 886 billion units in H1 FY '25. On the fuel side, ample fuel has been available at competitive prices. India'

203 million

e fuel side, ample fuel has been available at competitive prices. India's coal production reached 203 million tons in the second quarter of FY '26. At nearly 450 million tons, production in the first six mon

450 million

ices. India's coal production reached 203 million tons in the second quarter of FY '26. At nearly 450 million tons, production in the first six months of FY '26 has also remained similar as compared with Q2

19%

the quarter, imported coal price for 4,200 GAR coal declined to $42 per ton, a decline of nearly 19% compared with the same quarter last fiscal. For Q2 FY '26, prices of imported gas remained favora

1 megawatt

er, DISCOM may be exempted from their obligation of supplying commercial and industrial user with 1 megawatt and above load. One of the DISCOMs in the area shall be assigned as a supplier of last resort. Th

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Guidance — 20 items

Rohit Bajaj

opening

“In addition, fiscal policy measures to reduce the GST and simplify compliances are expected to further support economic activity going forward.”

Rohit Bajaj

opening

“Consequently, the RBI has revised India’s FY '26 GDP growth forecast to 6.8%, up from its earlier forecast of 6.5%.”

Rohit Bajaj

opening

“Once aligned, the contract will provide due clarity through the market participants for RE sale or procurement, which may increase RE participation going forward.”

Rohit Bajaj

opening

“In the same order, it is mentioned that coupling of Real-Time Market RTM will be considered at a later stage.”

Moving on to IGX

opening

“Nonetheless, with CEA’s forecast of power demand at 366 gigawatt by 2032 and power consumption to reach nearly 2,500 BUs, demand growth will continue to drive exchange volume.”

Moving on to IGX

opening

“Nearly 13,200 megawatt hour of BESS project have been awarded under the first tranche, while tenders for over half of the 30,000 megawatt hour projects in the second tranche under VGF have already been issued.”

Satyanarayan Goel

“Because what we understand is that for working out details for implementing market coupling, there will be discussions which will be required with the exchanges, with Grid India and procedures will be worked out and regulations amendment will be done.”

Satyanarayan Goel

“Maybe those drafts will be issued for public consultation.”

Satyanarayan Goel

“So that means the existing exchanges, IEX, PXIL and HPX will be able to do the trading of carbon credits.”

Ketan Jain

“How will we end and next year, what's your volume guidance for electricity volumes?”

Risks & concerns — 4 flagged

For the quarter, imported coal price for 4,200 GAR coal declined to $42 per ton, a decline of nearly 19% compared with the same quarter last fiscal.

— Rohit Bajaj

It will be difficult to say at this stage.

— Satyanarayan Goel

And in your opinion, is there a slowdown versus what was expected for the C&I power segment also?

— Sumit Kishore

It's difficult to say that because it depends on to what an extent industries are able to comply with the GHG gas emissions norms.

— Satyanarayan Goel

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Q&A — 13 exchanges

Good Afternoon. Sir, my first question is on the status of implementation of market coupling. What is the progress on the ground in terms of operational details. Were you guys asked to make a software or what has been the progress? And is it on time to get implemented by Jan 2026?

Satyanarayan Goel

Good Afternoon. With regard to status of market coupling, we are not aware about any developments which have taken place so far. Because what we understand is that for working out details for implementing market coupling, there will be discussions which will be required with the exchanges, with Grid India and procedures will be worked out and regulations amendment will be done. Maybe those drafts will be issued for public consultation. So, to the best of our knowledge, so far, nothing like that has happened. So, we were not contacted by the regulator or Grid India for developing any software.

Good Afternoon, Sir. This is Sumit here from Axis Capital. My first question is on the power, so last fiscal power demand growth was 4.2%, 4.3%. This year, first half has been flattish. So, how much of this is really attributable to weather? And in your opinion, is there a slowdown versus what was expected for the C&I power segment also? What is your impression?

Satyanarayan Goel

It was mainly because of the weather because right from April till October, we are seeing very good rains this time in the country, and there is a surplus rainfall in the country. As a result of that, the agricultural demand has crashed. And also, the summer domestic demand also was much lower than what was expected. So, Grid India's estimate was a peak demand of 277 gigawatt against that only about 250 gigawatt was the peak demand. So I think looking at all these things, it was mainly because of the weather conditions. C&I side, we do not see any reduction in demand, rather there is an increa

Hey, good afternoon. So just a couple of questions. First is the transition of the segment from DAM to RTMs. So, in this quarter, and especially in this half, you have seen, compared to the first half of the previous year, the percentage volumes of DAM has reduced from 41% to 35% in this half of the current financial year. RTMs (volume) went up from 30% to 36% as well. But TAM market has remained the same. Can you just give a light on why TAM market volumes share has remained the same and where do you see that going forward?

Satyanarayan Goel

First thing, the main product for the exchanges are the collective transactions, which is the DAM and RTM. So, significantly higher volumes happen only in these segments. And as you can see this year also, the share of collective transactions, which is DAM, RTM and (Green-DAM) G- DAM, the total share is more than 85% for these three products. And it will continue to remain like this. Term Ahead Market transactions, these are bilateral transactions. And these transactions happen mainly when there is a shortage of power and some of the distribution companies want to tie up power to ensure availa

Good afternoon, sir. I had a couple of questions. So, the first one is, when I see the gas exchange prices, I think these are US numbers, we are somewhere close to about $4 per MMBtu, whereas our GIXI prices are somewhere closer to about $11. So why is there so much of a difference between the prices? That is one. And the second question was on the carbon exchange. Are there any business development initiatives that we are doing to scale it up, sir? Could you just speak about that?

Satyanarayan Goel

Yes. In case of the gas market, US prices are based on the Henry Hub. And Henry Hub is an index, which is basically determining the gas price in USA. It is not international gas trading exchange. It is basically for the transactions happening in USA. And since USA has surplus gas available, their trading price is around $4, $3.5 to $4. If that gas has to come to India, then that gas will have to be liquefied, transported and re-gasified. The rate for that gas also will work out to be something around $10 to $12, which is the rate of the GIXI. But mostly in India, the gas is coming from the Mid

Let me answer his second question. And second question was regarding market development activities about carbon trading. Regarding carbon trading, CERC has issued draft regulations, public hearing was held, order is reserved on the carbon trading regulations. And Ministry of Environment has recently issued guidelines for greenhouse gas emissions for 4 industries. And after that, these industries will have to comply with this. There will be an audit for that. And thereafter the industries who are overachieving the targets, they will be issued carbon credits and industries which are not achievin

Vikas Kasturi

Thank you.

Thanks for the opportunity. So I just had two questions. The first is, I mean, I just wanted a clarification. In the event of market coupling, say, the entire volumes are split in the ratio of, say, 70% and the balance to Exchange is like 15-15. So, will IEX be responsible for clearing the 70% of the volumes as in even if the price is discovered by, say, third entity like the market company operator, would IEX be responsible for clearing the 70%? So, would they be getting paid for all the buys and sells that they have got in the exchange? So that's first question. And second question is, you a

Satyanarayan Goel

Your first question was, yes, clearing of the volumes. See, whatever buy bids and sell bids will come on the IEX platform and whatever is cleared after the market coupling, we will settle those bids. I suppose I got sell bid of 500 million units, buy bids of 200 million units. Out of that, after the price discovery happened at the centralized location, out of that, my 200 million units of sell bids are cleared and 150 million units of buy bids are cleared. So that means I will get from this 200 million units buyers money, I will get from them. I will get from 150 million unit buyers. And this

Sir, as far as the legal cases are concerned, what kind of forum are now we have been represented on this coupling matter? And when is the next hearing?

Satyanarayan Goel

I am not clear about your first question. The next hearing is on 28th of November. And this is with CERC? Next hearing is in APTEL, Appellate Tribunal for Electricity. Okay. And sir, what is the kind of, I mean, technology changes that we can bring in so that we do not lose much volume even if coupling does happen? See we are working in the company, and, what kind of changes in the system we have to do, what kind of technology support we need to provide to our customers to create customer loyalty, so all those things are being worked out. I do not think on this call, it will be possible to ela

Yes. Sir, my question is what steps is IEX taking to diversify the revenue stream after like market coupling will happen, so the revenue will decrease.

Satyanarayan Goel

No, why are you saying the after market coupling the revenue will decrease? We are making all efforts to ensure that we retain our market share and volumes are increasing every year. So, I am sure -- Sir, if you look at the result, right, so volume has not significantly increased, right? So after this market decoupling, actually, it seems monopoly is not there, right? So what I am asking -- Gentlemen, please hold the line, coupling has not happened, okay? So, for coupling only order has been issued, coupling has not happened. So, there is no change in that. And volumes have increased by 16%.

Good afternoon. My question is regarding in the quarter two result, electricity traded volume grew by 16.1% year-on-year, but the revenue from operations grew at a slower rate of 10.42% year-on-year, indicating the divergence. Could you please explain the reason behind this gap? Is it mainly due to the lower realization or unfavorable product mix? And what steps is the company taking to address this issue going forward?

Satyanarayan Goel

See, electricity volume grew by 16%, and then there is a certificate also. So my colleague, Mr. Vineet Harlalka, who is CFO of the company, he will explain you in detail about this. So, when we look at the total volume, the electricity volume increased by 16% during the quarter on year-on-year basis, but the REC certificates volume was a bit lower. And secondly, if you can recall, last year in the month of August, we reduced our transaction fee on the certificate from Rs. 40 to Rs. 20. So, during the previous year quarter, the full Rs. 40 fees was being charged. And this quarter, it was Rs. 20

Hello. My all the questions have been answered.

Management

Thank you for the opportunity. My first question is, what is the settlement obligation payable as of H1 FY '26?

Vineet Harlalka

The settlement payable keeps on changing depending upon the volume and price. If you look at the balance, the closing balance as on 30th of September, the total payable amount was near about Rs. 500 crores. Okay. My second question is related to product-wise market share. Is it possible for you to share that? Yes. Mr. Rohit will respond to this question, JMD of the company. If I talk about Q2, so our electricity market share is 84% and certificate market share is a little above 50%. So overall is about 75%. But what we have seen in the past couple of years, product- wise, IDM and RTM is 100%,

Good Afternoon, sir. So, all my major questions have been answered, but a small query, like once the carbon trading certificate gets yes nod from all regulations , like you expect one and a half years from now. So how significant volume can we expect from that? How significantly can they affect the financials?

Satyanarayan Goel

It's difficult to say that because it depends on to what an extent industries are able to comply with the GHG gas emissions norms. If everybody is complying, then there's no trading. If few are complying, over complying and if few are under or not complying, then yes, the trading will happen. So, it all depends on that. But looking at the trend in the past for the ESCerts and RECs, we believe that the market could be as big as the REC market. Okay. That’s all from my side. Thank you.

Thank you, friends. I would like to thank each one of you for being part of today's call. Throughout the second quarter, we witnessed efforts from the government and regulators to establish a favorable policy and regulatory climate to develop the energy sector. We at IEX remain committed to contribute to the development of a sustainable and energy-efficient future for India. Thank you so much. Have a great evening. Thank you.

Management

Speaking time

Satyanarayan Goel

Moderator

Anand B

Chirag Maroo

Sumit Kishore

Ketan Jain

Faisal Hawa

Rohit Bajaj

Yash Nerurkar

Aditya Raval

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Opening remarks

Rohan Gheewala

Thank you, Bhoomika. Good afternoon, ladies and gentlemen. On behalf of Axis Capital, I am pleased to welcome you all for the IEX Q2 FY '26 Earnings Conference Call. We have with us the management team of IEX, which is represented by Mr. Rohit Bajaj – Joint Managing Director, Mr. S. N. Goel – Chairman and Managing Director, Mr. Vineet Harlalka – Chief Financial Officer, Mr. Amit Kumar – Head of Operations, New Product Initiatives and Exchange Technology, and Ms. Aparna Garg – Head (Investor Relations and Corporate Communications). We will begin with the opening remarks from Mr. Rohit Bajaj, followed by an interactive Q&A session. Thank you, and over to you, sir.

Rohit Bajaj

Good evening, friends. I welcome you all to the IEX Earnings Call for Q2 FY '26. With me today on this call are Mr. Satyanarayan Goel – CMD, IEX; Mr. Vineet Harlalka – CFO and Company Secretary; Mr. Amit Kumar – Head of Market Operations and Exchange Technology; Ms. Aparna Garg – Head of Investor Relations and Corporate Communications; and Mr. Aditya Wali. At the macroeconomic level, India remains the fastest-growing major economy in the world, posting a strong GDP growth of 7.8% in the 1st Quarter of fiscal 2026. This trajectory has been powered by strong domestic demand, investment activity and a steady expansion of all major sectors, including industrial, services, agriculture and construction. The Q1 number offers optimism amidst global political uncertainty as India remains a source of stability and opportunity in the international landscape. The Indian Metrological Department has reported 8% higher rainfall during this year's monsoon, the highest rainfall in five years. This good

Now moving to the performance

During Q2 FY '26, IEX recorded electricity trading volume of 35.2 billion units, a Y-o-Y growth of 16.1%. Revenue for the company grew by 9.2% year-on-year, increasing from Rs. 167.8 crores in Q2 FY '25 to Rs. 183.3 crores in Q2 FY '26. Profit after tax increased by 13.9%, rising from Rs. 108.3 crores in Q2 FY '25 to Rs. 123.4 crores in Q2 FY '26. In Q2 FY '26, nearly 44 lakh renewable energy certificates were traded, lower than nearly 63 lakh certificates traded over the same quarter in FY '25. The RTM segment continues to demonstrate strong growth with 36% share in volume at IEX, surpassing the share of DAM segment for the first time ever. For Q2 FY '26, RTM volumes at nearly 15 billion units were higher by 39% on Y-o-Y basis, highlighting the segment's critical role in helping DISCOMs and open access consumers efficiently manage short-term needs. RTM's ability to offer flexibility and immediate responsiveness underlines the opportunity to efficiently integrate renewables with the gr

Moving on to IGX

IGX traded gas volume of 16.1 million MMBtu in Q2 FY '26, a growth of nearly 37% over Q2 FY '25, led by volumes from domestic gas producers and heightened power demand during the months of August and September. For Q2 FY '26, IGX recorded a profit after tax of Rs. 9.6 crores, which was higher by 57% compared toRs. 6.1 crores in Q2 FY '25. As gas prices continue to remain stable and policy initiatives continue to remain positive in the sector, volumes at IGX would continue to be robust. The arrival of early and prolonged monsoon this fiscal moderated power demand. Nonetheless, with CEA’s forecast of power demand at 366 gigawatt by 2032 and power consumption to reach nearly 2,500 BUs, demand growth will continue to drive exchange volume. In response to this expected demand growth, the MoP has been regularly monitoring the road map of thermal capacity addition of 80 gigawatt by 2032. Recently, the country's leading power producers also outlined investment plans to increase their thermal c

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