1. At a Glance
From market darling to market drubbing — IEX just pulled off a -30% nosedive worthy of an Olympic dive team. Yet, the company still controls 85% of India’s power exchange. Electricity flows. Revenues glow. But now, so do investor tears.
2. Introduction with Hook
Imagine a toll booth that prints money every time traffic passes — now imagine regulators stepping in and saying, “Let’s build a few more booths.” Welcome to IEX’s world.
- Q1 FY26 PAT up 25% YoY
- Market share still at 85%, but monopoly party may be over soon
Market Coupling is coming. And IEX shareholders are coupling with anxiety.
3. Business Model (WTF Do They Even Do?)
IEX is basically the Flipkart of electricity, except they never hold inventory, never deliver to your house, and still get rich on every transaction.
- Power trading platform: Day-ahead, term-ahead, real-time
- Renewable Energy Certificates (RECs) and Energy Saving Certs also traded
- 100% digital — no power cables, just profit lines
In short: They run a matchmaking app for electricity. Tinder for Transformers.
4. Financials Overview
Let’s talk juice (and not the kind in your inverter).
Q1 FY26 vs Q1 FY25:
| Metric | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹140 Cr | ₹117 Cr | +19% |
| EBITDA Margin | 81% | 82% | Slight dip |
| PAT | ₹113 Cr | ₹90 Cr | +25% |
| EPS | ₹1.27 | ₹1.05 | +21% |
Margins are still tighter than CERC’s deadline extensions.
5. Valuation
Let’s pretend you’re at a buffet — would you pay full price for last year’s biryani?
Method 1: P/E Valuation
TTM EPS = ₹4.88
Assign P/E range = 25x–35x (due to cash flows + monopoly risk)
Fair Value Range = ₹122 – ₹171
Method 2: EV/EBITDA
EV/EBITDA range = 20x–28x
TTM EBITDA = ₹469 Cr
Implied FV Range = ₹115 – ₹165
If you think paying 30x earnings is cool, you probably also buy Maggi at airport lounges.
6. What’s Cooking – News, Triggers, Drama
- Market Coupling Mandated (Jan 2026): Basically, “One India, One Electricity Market.” RIP IEX’s moat.
- Volumes Growing: Q1 volumes up 15% YoY. REC and gas markets sizzling.
- High FIIs Return: Jumped from 16% to 18.5% in June 2025. Big boys are back.
- Price Crash -30%: Because investors hate surprises — especially CERC-flavored ones.
More plot twists than an Ekta Kapoor season finale.
7. Balance Sheet
Here’s the simplified version of “we don’t need no debt”:
| Metric | Mar 2025 |
|---|---|
| Total Assets | ₹2,157 Cr |
| Total Liabilities | ₹1,148 Cr |
| Net Worth | ₹1,009 Cr |
| Borrowings | ₹6 Cr |
Debt: Not Titanic-level, but we’re basically cruising in a lifeboat.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Cash from Ops | -₹22 | ₹300 | ₹430 |
| Cash from Investing | ₹70 | -₹26 | -₹199 |
| Cash from Financing | -₹215 | -₹183 | -₹272 |
| Net Cash Flow | -₹167 | ₹91 | -₹41 |
Cash flow looks like your freelancer friend — always hustling, rarely paid.
9. Ratios – Sexy or Stressy?
| Ratio | Value FY25 |
|---|---|
| ROE | 41% |
| ROCE | 54% |
| P/E | 27x |
| PAT Margin | 81% |
| D/E | ~0 |
ROCE is hotter than Twitter after an Adani meme. But P/E? Slightly hangover-ish.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹401 | ₹449 | ₹535 |
| EBITDA | ₹337 | ₹379 | ₹455 |
| PAT | ₹293 | ₹341 | ₹415 |
PAT grew 21%, but only if you squint past the regulator-shaped fog.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E |
|---|---|---|---|
| BSE | ₹3,212 | ₹1,317 | 78x |
| MCX | ₹1,113 | ₹560 | 75x |
| IEX | ₹552 | ₹434 | 27x |
Looks like the least drunk guest at a wedding full of finance bros.
12. Miscellaneous – Shareholding, Promoters
| Class | Jun 2024 | Jun 2025 |
|---|---|---|
| FIIs | 11.6% | 18.5% |
| DIIs | 31.2% | 34.1% |
| Public | 56.8% | 47.0% |
- No promoters (company is professionally run)
- Anchor buzz: Nope
- M&A gossip: Nada
- New secretarial auditor: Yay corporate hygiene
13. EduInvesting Verdict™
A brilliant business model meets a regulatory banana peel. But let’s be honest — IEX still makes 80%+ OPM doing practically nothing. Volume growth is healthy, cash is rich, and risks are now more democratic (thanks, Market Coupling).
A utility toll booth with a speed breaker ahead. Fasten seatbelts. Expect volatility. Not boredom.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Indian Energy Exchange, IEX, Market Coupling, Power Trading, EduInvesting Premium
