FIIs and DIIs Favourite: This Power Trading Platform Stock Witnesses 9 Per Cent YoY Growth in Traded Electricity Volumes

For Q3FY25, IEX reported an 18.9 per cent year-on-year increase in consolidated net profit, reaching Rs 91.8 crore. Total income grew by 20 per cent to Rs 141.21 crore, with revenue from operations rising 15 per cent year-on-year to Rs 115.3 crore

Indian Energy Exchange (IEX) Limited released its volume data for February 2025, reporting a 9 per cent year-on-year increase in electricity traded volume, reaching 9,622 million units (MU). Despite the positive growth, investor sentiment remained muted, with the stock trading at Rs 153.45 on the BSE, down 0.81 per cent at 12:30 PM on the reporting day.

The Day-Ahead Market (DAM) at IEX saw an increase in volume, growing by 14 per cent year-on-year to 5,369 MU. The Real-Time Electricity Market (RTM) experienced an even stronger surge, rising by 23 per cent year-on-year to 2,887 MU.

Despite growing demand, the Market Clearing Price (MCP) in the DAM segment dropped by 11 per cent year-on-year to Rs 4.38 per unit. The decline in prices was attributed to improved liquidity on the supply side, providing an opportunity for distribution companies (Discoms) and commercial & industrial consumers to procure electricity at competitive prices.

IEX's Green Market, comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), recorded an 85 per cent year-on-year growth, achieving a total volume of 552 MU in February 2025. The G-DAM segment saw a significant rise of 95 per cent year-on-year, trading 519 MU at a weighted average price of Rs 4.59 per unit. Meanwhile, the G-TAM segment traded 33 MU at an average monthly price of Rs 3.88 per unit, reflecting a 3 per cent increase compared to the previous year.

A total of 16.37 lakh RECs were traded in two trading sessions held on February 12 and February 27, at clearing prices of Rs 350 per REC and Rs 349 per REC, respectively. This represented a staggering 167 per cent year-on-year increase in REC trading volume. The next REC trading sessions are scheduled for March 12 and March 26, 2025.

Government data for February 2025 indicated that India’s energy consumption reached 131.5 billion units (BUs), with average daily energy consumption increasing by 7 per cent year-on-year. A combination of milder winters and unusually warm February weather contributed to increased power demand. Notably, peak power demand hit 238 GW on February 7, 2025, compared to 222 GW on February 23, 2024.

For Q3FY25, IEX reported an 18.9 per cent year-on-year increase in consolidated net profit, reaching Rs 91.8 crore. Total income grew by 20 per cent to Rs 141.21 crore, with revenue from operations rising 15 per cent year-on-year to Rs 115.3 crore.

Institutional investors have shown growing confidence in IEX, with Foreign Institutional Investors (FIIs) increasing their stake by 5.35 per cent over the past nine months, from 10.89 per cent to 16.24 per cent. Domestic Institutional Investors (DIIs) also raised their holdings by 5.54 per cent, reaching 32.78 per cent by December 2024.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.