IEX Shares Surge 7% to ₹141.64 After Q1FY26 Profit Jumps 25.1% and Robust Demand Outpaces Supply

Mumbai, 25 July 2025: Shares of Indian Energy Exchange Ltd (IEX) jumped 7.04% to ₹141.64 in early trade today, following the company’s strong Q1 FY26 performance and a sharp rise in trading demand. The stock opened at ₹137.80, hit an intraday high of ₹141.99, and was last traded at ₹141.64 at 09:15 IST, with buy orders more than double the sell orders at 34.69 lakh vs. 16.43 lakh shares, highlighting exceptional buying activity.

As of 10:06 am IST on 25 July, shares of Indian Energy Exchange surged 8.71% to ₹143.85, following a strong opening at ₹137.80. The stock touched an intraday high of ₹149.40 and a low of ₹136.41, showing high volatility in morning trade. This rise came ahead of the company’s Q1 earnings call scheduled at 2:30 pm IST. The stock’s market capitalisation stood at ₹12,780 crore, with a P/E ratio of 29.78 and a dividend yield of 2.09%.

Q1FY26 Results: IEX Posts 25.1% Profit Growth, Revenue Up 19.2% YoY

IEX reported a consolidated net profit of ₹120.7 crore for Q1 FY26, marking a 25.1% year-on-year growth. Revenue from operations rose to ₹184.2 crore, a 19.2% YoY increase, driven by higher trade volumes and steady operating efficiency. The operating profit for the quarter stood at ₹115.3 crore, reflecting robust core business performance, although slightly lower than the previous quarter due to seasonal factors.

The company’s Operating Profit Margin (OPM) stood at 81.34%, maintaining its position among the highest in the sector. Profit before tax reached ₹151.7 crore, and tax expenses totalled ₹37.7 crore, leading to a strong net profit trajectory.

Segment-Wise Performance: Power Exchange Drives Growth, Gas Gains Ground

The Power Exchange continues to be IEX’s main revenue source, contributing ₹129.5 crore in the most recent full segment report (Mar 2023). It also delivered a Profit Before Tax and Interest of ₹110.9 crore, with ₹784.5 crore in capital employed, underscoring its central role in IEX’s business model.

The Gas Exchange, although still in its growth phase, recorded a capital allocation of ₹14.7 crore, reflecting IEX’s investment in expanding this vertical. The Carbon Exchange has started to register movement, with minimal but notable capital employed of ₹4.9 crore, indicating the early-stage build-out of IEX’s carbon market footprint.

13-Quarter Financial Trend Shows Consistent Growth Across All Core Metrics

Over the past 13 quarters, IEX has shown steady top-line and bottom-line growth. Revenue increased from ₹113.4 crore in Jun ’22 to ₹184.2 crore in Jun ’25, while net profit improved from ₹69.1 crore to ₹120.7 crore in the same period. This trajectory demonstrates consistent expansion, supported by stable operational expenses and minimal debt.

Operating profit margins remained consistently high, averaging 84-87%, while EPS rose to ₹1.4 in Jun ’25 from ₹0.8 in Jun ’22. Tax liabilities have grown in proportion to earnings, reflecting regulatory alignment with rising profitability.

Key Metrics Signal Market Leadership Despite Relative Underperformance

With a market capitalisation of ₹12,803.8 crore, IEX currently trades at a PE ratio of 28.2, slightly below the industry median. However, it boasts a high price-to-book ratio of 12.3 and an impressive ROE of 37.8% and ROA of 19.5%, both among the highest in the industry.

While PEG at 1.3 suggests valuation caution, the company’s net profit TTM growth of 22.1% and operating profit margin of 81.3% this quarter reinforce its status as a margin leader. Institutional holdings have risen by 2.37%, now standing at 52.65%, indicating long-term confidence. Despite -27.8% relative returns vs Nifty50, IEX continues to lead on operational excellence and profitability.

REF: https://www.nseindia.com/get-quotes/equity?symbol=IEX

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