Neutral Indian Energy Exchange Seen Targeting Rs 140 by Motilal Oswal: Analysts
Indian Energy Exchange Reports 4QFY26 Earnings, Misses Revenue Estimates
Indian Energy Exchange (IEX), a leading energy exchange in India, released its standalone earnings report for the fourth quarter of fiscal year 2026 (4QFY26). According to the report, IEX's revenue for the quarter stood at INR1.7 billion, which missed the research firm's estimate by 4.7%. Despite the revenue miss, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at INR1.5 billion, in line with estimates. This was supported by traded electricity volumes of 39.4 billion units (BU) and 7.2 million renewable energy certificates (RECs), both of which met expectations.
The company's standalone profit after tax (PAT) for 4QFY26 was INR1.2 billion, 4% lower than the research firm's estimate. This decline was primarily due to low other income. For the full fiscal year 2026 (FY26), IEX's revenue and PAT stood at INR6.1 billion and INR4.7 billion, respectively, representing a year-over-year (YoY) growth of 14%. The company's traded electricity volume increased to 141.1 billion units (+17% YoY), while 18.7 million renewable energy certificates (RECs) were traded (+5% YoY).
| Metric | Actual (FY26) | Actual (4QFY26) | YoY Growth (FY26) |
|---|---|---|---|
| Revenue (INR billion) | 6.1 | 1.7 | 14% |
| PAT (INR billion) | 4.7 | 1.2 | 14% |
| Traded Electricity Volume (billion units) | 141.1 | 39.4 | 17% |
| Renewable Energy Certificates (million) | 18.7 | 7.2 | 5% |
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The research firm maintains its Neutral rating for IEX, with a target price (TP) of INR140. This valuation is based on the company's business being valued at 24 times its estimated earnings per share (EPS) for December 2027 (Dec'27E EPS of INR6), which is slightly lower than the long-term average P/E ratio of 28x. The firm has not assumed any value for IEX's stake in its valuation.
Investor Takeaway
Maintain a Neutral rating on Indian Energy Exchange with a target price of INR140.
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