Company Update : IEX Ltd By Motilal Oswal Financial Services Ltd
Performance in line
* Indian Energy Exchange (IEX) reported a 4QFY25 standalone revenue of INR1,413m (+16.5% YoY), 7% below our estimate, due to a lower-thanestimated per unit transaction fee.
* The reported standalone PAT was in line with our estimate at INR1,120m (+17.8% YoY), driven by higher revenue. This was attributed to an 18% YoY rise in electricity volumes and other income.
* Operational performance:
* In 4QFY25, electricity volumes were up 18% YoY to 31.7BUs.
* Within the electricity volume segment, the Day Ahead Market (DAM) was up 13.5% YoY. Volumes of the Term Ahead Market (TAM) dipped 7.6% YoY in 4QFY25.
* Renewable energy certificates (RECs) traded in 4QFY25 stood at 6.7m (+107.5% YoY).
* The green market segment reported a strong performance, with volumes surging 100.5% YoY to reach 1.9BUs.
* In the gas market, the Indian Gas Exchange (IGX) posted a 132% YoY jump in traded volumes in 4QFY25, reaching 20.2m MMBtu. Reported PAT grew 102.9% YoY to INR89m.
* The Board has recommended a final dividend of INR1.50/share for FY25 (Record date: 16th May’25).
FY25 performance
* In FY25, traded electricity volumes were up 19% YoY at ~120.7BUs. 17.8m RECs were traded during FY25, a surge of 136% YoY.
* Consolidated revenue grew 19% YoY to INR6.5b in FY25, while reported PAT rose 22% YoY to INR4.29b vs. INR3.5b in FY24.
* For FY25, India's electricity consumption stood at 1,694BUs, a 4.4% increase YoY.
* Sell liquidity in the DAM segment rose 36% YoY in FY’25, helping keep prices competitive. The market clearing price declined by 14.7% YoY to INR4.47/unit (INR5.24/unit in FY’24).
* IGX recorded gas volumes at 60m MMBtu in FY’25 (+47% YoY), while its PAT rose 34.3% YoY to INR310m.
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