IEX surges 6% on heavy volumes post Q4 results; buy, hold or sell?

The company has maintained a healthy growth in revenue and profitability; until there is clarity on implementation of market coupling, ICICI Securities expects the stock to remain range-bound.

Indian Energy Exchange share price today: Indian Energy Exchange (IEX) shares rallied 6 per cent on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise subdued market after the company delivered strong performance in financial year 2024-25 (FY25), with 19 per cent growth in volumes and revenues.

 

At 09:39 am, IEX was quoting 5 per cent higher at ₹200.05, as compared to 0.03 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped over three-fold, with a combined nearly 24 million equity shares changing hands on the NSE and BSE. The stock price of the exchange and data platform company had hit a 52-week high of ₹244.35 on September 24, 2024.  Follow Stock Market LIVE Updates Today Here

 

Indian Energy Exchange Q4FY25, FY25 financial performance

 

IEX’s consolidated profit after tax (PAT) in the March 2025 quarter (Q4FY25) increased 21.1 per cent year-on-year (YoY) to ₹117.1 crore from ₹96.7 crore in Q4FY24. Consolidated revenue grew 17.0 per cent YoY to ₹174.6 crore from ₹149.3 crore in Q4FY24. The company reported its highest ever quarterly traded electricity volume of 31.7 billion units (BU) in Q4FY25, an increase of 18.1 per cent YoY.

 

For FY25, IEX traded 121 BU electricity in FY25 (102 BU FY24) up 19 per cent YoY. Revenue grew 20 per cent YoY to ₹537 crore, while FY25 PAT came in at ₹429.2 crore up 22 per cent YoY.  ALSO READ | Should you buy Axis Bank shares after Q4 results? Analysts suggest strategy

 

Power Sector Update

 

On the power sector front, according to government data, India’s electricity consumption in FY25 reached 1,694 BUs, representing a 4.4 per cent increase on a YoY basis. Given the increase in demand, the Ministry of Power took proactive measures throughout the year to enhance power supply like extending the directive for imported coal-based power plants to operate at full capacity, sale of surplus un-requisitioned power on power exchanges, ensuring the availability of gas-based plants and higher availability of generating units to meet peak demand.

 

Overall, the fuel situation has remained stable throughout FY25. This improved supply scenario resulted in increased sell liquidity at IEX, despite an increase in the country’s energy demand in FY25. The sell liquidity in the Day Ahead Market (DAM) segment increased by 36 per cent on a YoY basis, thereby keeping power prices competitive on the exchange, IEX said.

Brokerage view on IEX – ICICI Securities

 

IEX has delivered strong performance in FY25 with ~19 per cent growth in volumes and revenues. The rise in electricity supply in the DAM market kept electricity rates competitive on the exchange, resulting in a 15 per cent decline in clearing price to ₹4.47/unit on a YoY basis. Despite which the company maintained healthy growth in revenue and profitability. Until there is clarity on implementation of market coupling, the brokerage firm expects the stock will remain range bound.  ALSO READ | Cyient slides 9% as revenue falls; no guidance given amid macro uncertainty

 

About IEX

 

IEX is India’s premier electricity exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.