Neutral Indian Energy Exchange; target of Rs 142: Motilal Oswal

Neutral

Motilal Oswal's research report on Indian Energy Exchange

In-line 3Q: Indian Energy Exchange (IEX) reported 3QFY26 standalone revenue of INR1.4b and EBITDA of INR1.2b, both in line with estimates, supported by traded electricity volumes of 34.1BUs, which were also in line with estimates. Standalone PAT was 5% above our est. at INR1.2b, primarily due to higher other income. IEX’s electricity volumes increased 11.7% YoY, while renewable energy certificate (REC) volumes saw a dip of 30%.

Outlook

Our TP of INR142 for IEX is based on the following: We value the business at 25x Dec’27E EPS of INR5.7, slightly lower than long term average P/E of 28x. We have not assumed any value for IGX's stake in our valuation.

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