IEX continues to reinforce its market leadership with an 83-84 percent share in electricity trading, benefiting from India's increasing power demand and regulatory support. The company is expanding into new trading platforms, including the Indian Gas Exchange (IGX), international carbon exchange, and coal exchange, further strengthening its moat. The anticipated 25% volume growth in FY25, coupled with supportive regulatory environment and a robust balance sheet, IEX offers good growth visibility. Despite regulatory risks, IEX's diversification into newer markets ensures continued competitiveness and earnings visibility.
Increased competition in the core electricity trading business is leading analysts to fear it may cede market share to new entrants
India's power sector regulator CERC today suggested establishing a South Asian power trading market to help ease acute electricity shortages facing many nations in the region.