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IEX Q3FY26 Results: Powering Through Energy Transitions

Lesson 215/323 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

IEX Q3FY26 Results: Powering Through Energy Transitions

IEX is India’s premier technology-led electricity marketplace, providing a transparent platform for the physical delivery of electricity, renewables, and certificates. As of February 14, 2026, the stock trades at a CMP of ₹124, reflecting a robust business model that continues to benefit from India's shifting energy mix.

Section 1: The Financial Growth & Volume Table

Metrics	Q3FY26 (Current)	Q3FY25 (YoY)	Q2FY26 (QoQ)	YoY Growth %	QoQ Growth %
Electricity Volume (BUs)	34.1	30.5	32.7*	+11.9%	+4.3%
Total Revenue (₹ Cr)	183.1	160.5	183.3	+14.0%	-0.1%
EBITDA (₹ Cr)	163.5	145.5	167.3	+12.4%	-2.3%
PAT (Net Profit) (₹ Cr)	119.1	107.3	123.3	+11.0%	-3.4%
EPS (₹)	1.34	1.21	1.39	+10.7%	-3.6%

*Derived from total 9M volume of 101.7 BUs.

Segmental Revenue Share (Standalone)

Segment	Q3FY26 Share %	Q3FY25 Share %	Trend
Transaction Fees	76%	79%	Marginal Decline
Admission & Annual Fees	3%	3%	Stable
Other Income	21%	18%	Improving

Section 2: Sector KPIs & Concall Insights

As a specialized exchange, IEX's performance is driven by liquidity and regulatory clarity:

Market Share: IEX maintains a dominant 83% market share in the overall electricity segment and nearly 50% in Renewable Energy Certificates (REC).
Sell-Side Liquidity: A massive 44% YoY increase in sell bids for the Day-Ahead Market (DAM) led to lower clearing prices, incentivizing Discoms to optimize costs.
EBITDA Margin: Remains exceptionally high at approximately 89.3%, showcasing the scalability of the technology platform.

Critical Concall Insights

Market Coupling Verdict: Management expects a final order from APTEL within a month regarding the appeal against DAM coupling.
New Product Pipelines: Petitions are pending with CERC for Green RTM and extending Term Ahead Market (TAM) contracts up to 11 months.
Gas & Carbon Expansion: The Indian Gas Exchange (IGX) saw 46% YoY volume growth in 9MFY26. IEX has also initiated the process for an IGX IPO to dilute its stake to the regulatory 25%.

Section 3: Profitability & Valuation Suite

Metric	Current Value (Q3FY26)	Long-Term Average / Notes
ROE / ROCE	~38% - 40%	Consistently high due to asset-light model.
Operating Margin	89.3%	Industry-leading technology efficiency.
Debt-to-Equity	Zero	Cash & equivalents stand at ₹1,500 Cr.
Dividend Yield	Interim Div: ₹1.50	Yields ~1.2% at CMP 124.

Section 4: Performance Trends (H1 vs. 9M)

Revenue Trend: Revenue growth has accelerated slightly from 12% in H1 to 14% in Q3.
Profitability: While PAT growth for Q3 was 11%, the 9-month PAT growth stands at a robust 16.4%, indicating a very strong first half of the year.
Volume Drivers: The Real-Time Market (RTM) continues to be the primary growth engine, surging 38.6% in 9MFY26 as it helps integrate renewable energy into the grid.

Conclusion: Wealth-Building Strategy

IEX remains a "toll-gate" play on India's energy consumption, which is projected to reach 2,300 BU by FY30. The company’s pivot toward Gas and Carbon exchanges provides long-term diversification beyond traditional electricity.

In our Wealth-Building Strategy, this falls under Step 4: Valuation Analysis. While the business model is robust, regulatory overhangs regarding "Market Coupling" remain the key risk to monitor.

FairValue:

https://docs.google.com/spreadsheets/d/e/2PACX-1vS6BLRJ_rv5MlltvB9mbCOX8t6G8-EO9tDgBWu9S8_XPO_nJ9gFMjWYmFXMmUGO9JZj6W5JUClCsmcB/pubhtml?gid=525668786&single=true

Disclosure: Profit Finstock Pvt Ltd is a SEBI Registered Investment Advisor (INA000020651). This report is for educational purposes and does not constitute a direct buy/sell recomme

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