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📊 IEX FY25 and Q4FY25 Results Analysis

Lesson 113/158 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 IEX FY25 and Q4FY25 Results Analysis

Executive Summary

Indian Energy Exchange (IEX) has demonstrated robust operational performance in FY25, marked by a record high in electricity volumes, strong revenue and profit growth, and strategic positioning for future energy transitions. Favorable policy developments, a diversified product mix, technological advancements, and regulatory tailwinds are expected to sustain growth momentum over the medium to long term.

1. ⚡ Traded Electricity Volumes

FY25:

121 BU traded electricity volume
+18.7% YoY Growth

Q4FY25:

31.7 BU, marking the highest-ever quarterly volume
+18.1% YoY Growth

2. 💰 Revenue Growth

FY25 Consolidated Revenue:

₹657.4 Cr (+19.3% YoY)
vs ₹550.8 Cr in FY24

Q4FY25 Consolidated Revenue:

₹174.6 Cr (+17.0% YoY)
vs ₹149.3 Cr in Q4FY24

3. 📈 Segmental Growth and Share (FY25 & Q4FY25)

Segment	Share (%) FY25	Commentary
DAM (Day Ahead Market)	44%	Steady core volume driver
RTM (Real Time Market)	28%	High traction (+29% YoY)
TAM (Term Ahead Market)	7%	Stable, opportunity for growth
DAC (Day Ahead Contingency)	2%	Niche
Green Market (GDAM + RTM Green)	6%	171% YoY surge
Certificates (RECs & ESCerts)	13%	136% YoY growth in RECs

4. 📊 Profitability Analysis

Consolidated PAT (FY25):

₹429.2 Cr (+22.3% YoY)

Consolidated PAT (Q4FY25):

₹117.1 Cr (+21.1% YoY)

Standalone PAT (FY25):

₹414.6 Cr (+21.4% YoY)

Standalone PAT (Q4FY25):

₹112 Cr (+17.8% YoY)

🧮 Profit Margins

Quarter	EBITDA Margin	PAT Margin
Q4FY25	90.4%	67%+
Q3FY25	~90% (comparable)	Slightly lower
Q4FY24	~89% (comparable)	Lower

Margins remain best-in-class across the energy sector.

5. 🛡️ Solvency - Liquidity - Profitability - Cash Flow Metrics

Metrics	FY25 Status	Commentary
Debt to Equity	Zero Debt	Highly liquid, cash-rich
Current Ratio	Strong >1.5x	Adequate liquidity buffer
ROE	40%+	Best in class
ROCE	55%+	Superior capital efficiency
Cash Flows from Operations	Positive and strong	Cash-generative business
Dividend	₹1.5/share Final Dividend	150% payout

6. 🛢️ Industry KPIs

India’s Power Consumption Growth:
+4.4% YoY to 1,694 BU
Day Ahead Market (DAM) Clearing Price:
₹4.47/unit (↓14.7% YoY) due to 36% YoY rise in sell liquidity
Coal Availability:

Coal production: +5% YoY
23 days inventory: Highest since 2021

Gas Market:
IGX volume grew +47% YoY

7. 🔮 Near Term and Long Term Outlook

Near Term Catalysts (FY26-FY28):

Increased traded volumes due to:

Higher power demand projections (CEA)
Load shifting to solar hours
Launch of Green RTM and Carbon Credit Trading

REC fungibility driving REC market expansion.

Long Term Growth Drivers (FY28-FY35):

Energy transition: Shift towards renewables (50% capacity share by 2030)
Electrification mega-trend: EVs, railways, industrial electrification
Market reforms: Capacity markets, derivatives trading, coal exchange
Expansion into Battery Energy Storage System (BESS) trading and Hydrogen Market Development

🏁 Strategic Conclusion

Indian Energy Exchange stands at the cusp of multi-dimensional growth, with a fortified market leadership (84% share), technology-driven platform, robust cash flows, and new market opportunities across power, gas, and carbon credits.
At the current CMP of ₹190, IEX trades at a reasonable forward valuation considering:

Premium business model
Monopoly-like status
Upcoming regulatory tailwinds.

Investors with a 5–10-year horizon can view IEX as a core holding for compounding opportunities aligned with India's energy sector transformation.

Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell securities.

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Piyush Patel

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