Indian Energy Exchange Ltd. (IEX) AI Stock Analysis

• Market Cap: ₹113.96B
• Dividend Yield: 3.23%
• Average Volume (3M): 274.69K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.55
• Revenue Growth: 14.10%
• EPS Growth: 19.23%
• Country: IN
• Employees: 170
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Capital Markets
• EPS (TTM): 1.30
• Shares Outstanding: 891,692,750
• 10 Day Avg. Volume: 234,014
• 30 Day Avg. Volume: 274,691
• PEG Ratio: 1.62
• Price to Book (P/B): 13.82
• Price to Sales (P/S): 29.25
• P/FCF Ratio: 37.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹142.00
• Price Target Upside: -8.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹140.00 ▼(-9.53% Downside)

The score is driven primarily by strong financial performance (high margins, solid growth, strong cash conversion, and very low leverage). This is tempered by mixed technical signals, including a negative MACD and the stock remaining below its 200-day average. Valuation is reasonable but not cheap, with the dividend yield providing some support.

Positive Factors

High Profitability

Sustained ultra-high margins indicate a scalable, low-variable-cost exchange model with strong pricing power and operational efficiency. Such profitability supports durable free cash flow, funds reinvestment in platform capabilities, and provides a structural buffer against cyclical revenue swings.

Strong Cash Generation

Near 1:1 conversion of net income to free cash flow and rapid FCF growth underpin financial flexibility for capex, technology, dividends or buybacks. Reliable cash conversion is a durable strength for a platform business that funds long-term product development and shareholder returns.

Very Low Leverage

Minimal financial leverage and a solid equity base provide balance sheet resilience and optionality to pursue strategic investments or weather market stress. High ROE shows efficient capital use, giving the company structural financial strength and lower default risk over the medium term.

Negative Factors

Rising Liabilities

An upward trend in liabilities, even from a low base, can erode the company’s low-leverage advantage if unchecked. Over months this may tighten liquidity cushions or require higher working capital financing, reducing strategic flexibility and increasing funding costs if growth necessitates balance sheet use.

Revenue Sensitivity to Volumes & Regulation

Core revenue depends on trading volumes and fee schedules set within a regulated market. Structural shifts in power market activity or regulatory fee changes can materially alter revenue trajectories. This creates a persistent exposure to regulatory decisions and sector demand cycles over the medium term.

Competitive Pressure Risk to Margins

Exceptionally high margins make the business a clear target for competitors, new platforms, or fee compression from regulators. Over 2-6 months such competitive or regulatory moves could erode pricing power and margin sustainability, posing a structural threat to profitability if product differentiation lags.

Indian Energy Exchange Ltd. Business Overview & Revenue Model

Company Description

Indian Energy Exchange Limited operates a power trading platform. It enables trading and price discovery of electricity and related products with risk management for participants of the electricity market. The company's products include Day-Ahead Market, a physical electricity trading market for deliveries for any/some/all 15 minute time blocks in 24 hours of next day starting from midnight; Term-Ahead-Market that provides a range of products allowing participants to buy/sell electricity on intra-day, day-ahead contingency, and term ahead contracts; Real-Time Market, an auction session every half an hour with power to be delivered after 4 time blocks or an hour after gate closure of the auction; Renewable Energy Certificates to ease the purchase of renewable energy by the state utilities and obligated entities; Green Day-Ahead Market, a double-sided closed collective auction in renewable energy on a day-ahead basis; Cross-Border Electricity Trade, an endeavour towards building an integrated South Asian Power Market; and Energy Saving Certificates, a market-based instrument designed for the consumers in energy industries, such as aluminum, cement, thermal Power plant, distribution, utilities, refineries, railways, fertilizer, and iron and steel etc. Indian Energy Exchange Limited was incorporated in 2007 and is based in New Delhi, India.

How the Company Makes Money

IEX generates revenue primarily through transaction fees collected from market participants for trading activities on its platform. The company charges a fee for each transaction executed, which varies based on the volume and type of trade. Additionally, IEX earns revenue from the sale of renewable energy certificates (RECs) and energy-saving certificates (ESCerts), which facilitate compliance with regulatory requirements in the renewable energy sector. The exchange also benefits from membership fees paid by its members, including electricity producers, distributors, and consumers. Strategic partnerships with regulatory bodies and other market participants further enhance its market presence and contribute to revenue generation, as they bolster the exchange's credibility and operational efficiency.

Indian Energy Exchange Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by excellent profitability (TTM net margin 65.28%, EBIT margin 92.98%, EBITDA margin 87.28%) and solid revenue growth (+19.34% YoY). Balance sheet risk is low with minimal leverage (debt-to-equity 0.0054) and high ROE (37.77%), while cash generation is strong (free cash flow +48.05% YoY; FCF/net income 0.98). Rising liabilities are a watch item but do not outweigh the overall strength.

Income Statement

Indian Energy Exchange Ltd. demonstrates strong profitability with consistently high gross profit and net profit margins, reaching 100% and 65.28% respectively in the latest TTM. The company also shows robust revenue growth, with a 19.34% increase from the previous year, indicating positive market demand and effective operational strategies. The EBIT and EBITDA margins are notably high at 92.98% and 87.28%, reflecting strong operational efficiency. These factors contribute to a solid income statement performance, albeit with a need to monitor future competitive pressures that could impact margins.

Balance Sheet

The balance sheet of Indian Energy Exchange Ltd. is marked by a healthy equity base, with an equity ratio of 51.73%, indicating financial stability and a strong asset base. The debt-to-equity ratio is low at 0.0054, minimizing financial risk. The company's return on equity is impressive at 37.77%, showcasing efficient management of shareholder investments. However, there is a noticeable increase in liabilities over the years, which should be monitored to prevent potential leverage risks.

Cash Flow

Indian Energy Exchange Ltd. exhibits strong cash flow management with significant free cash flow growth of 48.05% over the past year, providing a solid foundation for reinvestment and shareholder returns. The operating cash flow to net income ratio is nearly 1:1, reflecting robust cash generation relative to earnings. The free cash flow to net income ratio is also strong at 0.98, indicating efficient conversion of net income to cash. Overall, the cash flow statement reflects excellent liquidity management, although future capital expenditures should be closely watched.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.55B	5.37B	5.51B	4.01B	4.31B	3.18B
Gross Profit	5.15B	4.98B	5.50B	3.71B	3.95B	2.78B
EBITDA	6.19B	5.88B	4.89B	4.23B	4.24B	2.89B
Net Income	4.53B	4.29B	3.51B	3.06B	3.09B	2.06B
Balance Sheet
Total Assets	0.00	21.97B	17.74B	14.53B	16.96B	9.85B
Cash, Cash Equivalents and Short-Term Investments	12.91B	9.68B	9.33B	7.52B	13.73B	7.02B
Total Debt	0.00	61.55M	103.63M	140.97M	100.09M	117.31M
Total Liabilities	-11.36B	10.60B	8.01B	6.54B	9.93B	4.29B
Stockholders Equity	11.36B	11.36B	9.72B	7.99B	7.03B	5.26B
Cash Flow
Free Cash Flow	0.00	4.19B	2.83B	-316.43M	7.51B	2.85B
Operating Cash Flow	0.00	4.27B	2.98B	-226.18M	7.62B	3.06B
Investing Cash Flow	0.00	-1.96B	-244.98M	702.64M	-4.48B	-1.96B
Financing Cash Flow	0.00	-2.72B	-1.83B	-2.15B	-1.36B	-771.22M

Indian Energy Exchange Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 154.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IEX, the sentiment is Negative. The current price of 154.75 is above the 20-day moving average (MA) of 132.20, above the 50-day MA of 136.26, and below the 200-day MA of 156.31, indicating a bearish trend. The MACD of -3.55 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 40.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IEX.

Indian Energy Exchange Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEX	72 Outperform	₹113.96B	23.40	―	3.23%	14.10%	19.23%
ANGELONE	72 Outperform	₹244.01B	30.47	―	1.88%	-12.65%	-42.72%
CDSL	65 Neutral	₹285.56B	58.94	―	0.82%	3.63%	-11.24%
CHOICEIN	65 Neutral	₹168.15B	72.72	―	―	12.17%	19.00%
MONARCH	64 Neutral	₹24.45B	14.42	―	0.33%	-7.85%	-11.22%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
EDELWEISS	55 Neutral	₹103.45B	23.44	―	1.37%	-19.77%	-11.03%

Indian Energy Exchange Ltd. Corporate Events

Indian Energy Exchange Board Clears Q3 FY26 Results, Declares Interim Dividend

Indian Energy Exchange Ltd. has reported that its board has approved the standalone and consolidated unaudited financial results for the quarter ended 31 December 2025 at its meeting held on 29 January 2026, with the results to be made available on the company’s and stock exchanges’ websites. The board has also declared an interim dividend of ₹0.50 per equity share of face value ₹1 for the financial year 2025-26, setting 4 February 2026 as the record date to determine shareholders eligible to receive this payout, underscoring the company’s continued capital return to investors.

Indian Energy Exchange Schedules Virtual Meet With Allspring Global

Indian Energy Exchange Ltd. has informed stock exchanges that it will hold a one-on-one virtual meeting with institutional investor Allspring Global on December 19, 2025, as part of its regular schedule of analyst and institutional investor interactions. The company emphasized that no unpublished price-sensitive information will be shared during this engagement, underscoring its compliance with securities regulations and commitment to transparent disclosure practices for market participants and shareholders.

Indian Energy Exchange Schedules Investor Meetings

Indian Energy Exchange Ltd. has announced a schedule for upcoming meetings with analysts and institutional investors, which will take place virtually on December 10 and December 16, 2025. The company has assured that no unpublished price-sensitive information will be shared during these meetings, and the schedule is subject to change based on the availability of participants.

Indian Gas Exchange Ltd. Set to Launch IPO

Indian Energy Exchange Ltd. has announced that its associate company, Indian Gas Exchange Ltd., has received board approval to initiate the process for an Initial Public Offering (IPO). This move is aimed at offering equity shares through an offer for sale by existing shareholders, pending market conditions and necessary approvals. The decision marks a significant step for Indian Gas Exchange Ltd. in expanding its market presence and potentially increasing its capital base.

Indian Energy Exchange Ltd. Schedules Investor Meetings for November 2025

Indian Energy Exchange Ltd. has announced a schedule of meetings with analysts and institutional investors, set to take place between November 11 and November 14, 2025. These meetings, which include both in-person and virtual formats, are part of the company’s ongoing efforts to engage with stakeholders and provide updates on its operations. The company has assured that no unpublished price-sensitive information will be shared during these meetings, maintaining compliance with regulatory requirements.