Indian Energy Exchange (IEX) Reports 16% YoY Surge in Q2FY26 Power Market Volume as Prices Ease on Higher Supply

Mumbai, 7 October 2025: Indian Energy Exchange Ltd (NSE: IEX, BSE: 540750) recorded a 16.1% year-on-year increase in electricity traded volume at 35,217 million units (MU) in Q2FY26. The robust performance coincided with a notable decline in market-clearing prices, reflecting higher generation from hydro, wind, and coal-based plants, which boosted liquidity across trading segments.

Headquartered in Noida, Uttar Pradesh, Indian Energy Exchange Ltd facilitates electronic trading of electricity, renewable energy, and energy certificates across India. As a publicly listed company on NSE and BSE, it enables transparent price discovery and efficient power procurement for utilities, industrial consumers, and renewable energy producers, reinforcing its position as a central player in India’s energy market.

Total Electricity Trade Climbs 16.1% YoY to 35,217 MU as Supply Improves

In the second quarter of FY26, the exchange saw total electricity volumes rise sharply from 30,326 MU in Q2FY25 to 35,217 MU, reflecting sustained demand from distribution companies (Discoms) and industrial consumers. The price moderation, particularly in the Day-Ahead Market (DAM) and Real-Time Market (RTM), was triggered by abundant generation capacity, easing procurement costs for buyers. Term-Ahead Market (TAM) volumes rose modestly by 1% to 2,719 MU, while the Green Market grew 17.7% to 3,040 MU, highlighting increasing traction in renewable energy trade.

Day-Ahead and Real-Time Markets Highlight Supply-Driven Price Drop

The Day-Ahead Market contributed 36.1% of total traded volumes at 14,534 MU, showing a modest 1.4% YoY growth, while average prices fell 12.5% to ₹3.93/unit. The Real-Time Market was the standout performer, rising 39.1% YoY to 14,925 MU, with prices declining 16.1% to ₹3.51/unit due to surplus supply. Notably, heavy rainfall on 25 August 2025 briefly pushed RTM prices close to zero, underscoring how weather-driven hydro generation impacted short-term market dynamics.

Green Market and REC Trade Reflect Mixed Renewable Energy Trends

Renewable energy trading remained robust, with the Green Market posting 3,040 MU in Q2FY26, a 17.7% YoY increase driven by Green Day-Ahead and Green Term-Ahead segments. Conversely, Renewable Energy Certificates (RECs) traded 44.22 lakh units, marking a 29.8% YoY decline, indicating muted compliance demand despite rising renewable generation. The exchange’s green energy initiatives continue to expand market participation, while REC demand trends highlight regulatory and market-driven constraints.

Monthly Snapshot: September 2025 Shows Consistent Demand Growth Amid Price Moderation

During September 2025, total electricity (excluding TRAS) reached 11,065 MU, up 7.1% YoY, with the Day-Ahead Market at 4,228 MU (-8.3% YoY) and the Real-Time Market at 4,786 MU (+22.3% YoY). Average prices declined in both segments, 14.5% in DAM (₹3.58/unit) and 16.8% in RTM (₹3.31/unit). Green Market volumes surged 50% YoY to 1,084 MU, reflecting growing adoption of renewable electricity, while REC trades dropped 39% to 6.27 lakh units, consistent with subdued compliance requirements.

Share Price Response: IEX Opens Lower Amid Price Decline but Maintains Stability

Following the Q2FY26 volume surge and easing market prices, IEX shares opened at ₹142.96, touched a high of ₹143.60 and a low of ₹141.09, before trading at ₹141.80 at 1:27 PM IST, down ₹0.75 (0.53%) from the previous close. Despite the slight dip, the stock’s 12.61K crore market capitalisation and 2.12% dividend yield reflected stable investor confidence, with a P/E ratio of 27.77, highlighting the company’s consistent operational performance amid market fluctuations.

IEX’s Q2FY26 results demonstrate the significant effect of increased generation capacity on traded volumes and market pricing. The surge in electricity trade and expanded green market adoption underline the continued growth of India’s power sector, while declining REC demand highlights evolving compliance patterns and the need for balanced regulatory frameworks to support renewable energy integration.

REF: https://nsearchives.nseindia.com/corporate/IEX_06102025054417_Signed_IEX_Media_Release_Power_Market_Update_September25.pdf

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