IEX shares rebound to soar 12% on solid Q1 show; analysts flag growth concerns

Indian Energy Exchange Ltd

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After crashing almost 30 percent in the previous session, shares of Indian Energy Exchange Ltd (IEX) took a U-turn to soar over 12 percent in the early session on Friday, July 25.

At 9.50 a.m., shares were quoting Rs 145.99, up 10.3 percent on the NSE compared to the previous session's closing price. The gains in today's session were driven on positive earnings show for the June quarter. Traders and investors also looked to bottom fish, buying the counter at a steep discount to its historical valuations.

Indian Energy Exchange reported a standalone net profit of Rs 113 crore for the first quarter of the financial year 2026, up 21 percent from the Rs 93 crore net profit reported in the corresponding quarter of the previous financial year.

The firm’s revenue from operations rose 13 percent on-year to Rs 140 crore in Q1 FY26, from Rs 124 crore in Q1 FY25. Expenses meanwhile increased 9 percent on-year to Rs 32 crore during the quarter under review.

In the previous session, IEX's shares crashed 28 percent after reports suggested that the Central Regulatory Electricity Commission approved the implementation of power coupling with the Day Ahead Market (DAM).

Market coupling is a model where buy bids and sell bids from all power exchanges in India will be aggregated and matched, to discover a uniform market clearing price (MCP). It will also mean there will be only one price for the electricity that is to be traded at any point of time through these exchanges.

However, all is not clear for IEX. According to market experts, the latest development could significantly impact the company and the stock as it will have a direct impact on transaction income, which accounts for more than 70 percent of the total income of the listed entity. Therefore, further corrections are expected in the firm's stock price.

Analysts believe that eventually one could see a derating in the PE multiple. The current 35–40x PE multiple was given based on strong earnings and monopoly positioning and that premium is likely to go down, they say.

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