IEX revenues to take a big hit after reducing transaction fees; Here’s what shareholders should know

Synopsis: Indian Energy Exchange (IEX) dropped up to 4% as the regulator considers cutting transaction fees from 2 to 1.5 paise per kWh, potentially lowering revenue, especially for Term-Ahead Market contracts.

The company, which offers an automated platform and infrastructure for trading electricity units for physical delivery and is now in focus as CERC considers lowering its transaction fees.

With a market capitalisation of Rs. 12,244 cr, the shares of Indian Energy Exchange Ltd are currently trading at Rs. 136.20 per share, dropping 4% in today’s market session, making a low of Rs. 133.45, down from its previous close of Rs. 139.15 per share.

News

Shares of Indian Energy Exchange (IEX) fell up to 4% following reports that the regulator may reduce transaction fees. Investor concerns over potential revenue impact triggered the decline in the stock price.

According to sources, the Central Electricity Regulatory Commission (CERC) is considering a uniform transaction fee of around 1.5 paise per kWh per side, down from the current 2 paise. This change aims to standardise charges across the exchange while making trading more cost-effective for participants.

For Term-Ahead Market (TAM) contracts, fees could be lowered further to around 1.25 paise per kWh per side, potentially impacting longer-term trades more significantly. The proposed revision would reduce the total round-trip fee from approximately 4 paise to 3 paise per kWh, affecting IEX’s revenue. 

About the company 

Indian Energy Exchange Ltd (IEX) is India’s leading electricity trading platform, facilitating efficient and transparent power transactions. It enables short-term and long-term electricity contracts, helping generators, distributors, and large consumers optimise costs while promoting a competitive energy market.

On a year-on-year basis, sales rose 9% to Rs. 152 crore in Q2FY26 from Rs. 139 crore in Q2FY25. EBITDA increased 10% to Rs. 132 crore, while net profit grew 15% to Rs. 122 crore. Earnings per share (EPS) rose 14% to Rs. 1.36, up from Rs. 1.19 a year ago.

The company has a strong financial profile, with a return on capital employed (ROCE) of 53.6% and return on equity (ROE) of 40.5%, compared to an industry P/E of 60.5. The company has maintained a healthy three-year average ROE of 39.2% and consistently rewards shareholders with a robust dividend payout of 53.4%, while its stock trades at a P/E of 27.0.

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