Neutral Indian Energy Exchange; target of Rs 150: Motilal Oswal

Neutral

Motilal Oswal's research report on Indian Energy Exchange

In-line result; robust volume growth trends continue: Indian Energy Exchange (IEX) reported 2QFY26 standalone revenue of INR1.5b and EBITDA of INR1.3b, both in line with estimates, supported by traded electricity volumes of 35.2BUs, which were also in line with expectations. Standalone PAT was 5% above our estimate at INR1.2b, primarily due to higher other income. IEX’s electricity volumes increased 16% YoY, while renewable energy certificate (REC) volumes saw a dip of 30%.

Outlook

Our TP of INR150 for IEX is based on the following: We value the business at 28x FY27E EPS of INR5.4, in line with the long-term average P/E of 28x. We have not assumed any value for IGX's stake in our valuation.

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Indian Energy Exchange_03112025_Motilal Oswal