Indian Energy Exchange Ltd. makes a corporate announcement

The Q4 FY24 numbers imply stable fee monetisation, not a higher transaction-fee rate. DAM volume grew more slowly than RTM, while the blended Q4 revenue-per-reported-volume was broadly flat; management said electricity transaction fees remained at 2 paise per unit on each side. The small gap between volume growth and revenue growth was attributed to incentives in Term-Ahead and REC transactions, rather than to a reported DAM/RTM fee reduction.

DAM, RTM and fee realisation

The apparent mismatch is therefore not between DAM/RTM volume and the standard electricity fee. It arises because the company’s consolidated revenue includes multiple fee streams and because management acknowledged incentives in the Term-Ahead and REC markets, which made revenue growth slightly lower than volume growth ^[4]. The Rs 0.50 per-unit figure above is only a blended revenue-to-volume proxy, not the contractual electricity transaction-fee rate.

Green Market and Certificate contribution

The Green Market traded 3 BU in FY24 versus 5 BU in FY23, a decline of nearly 40% ^[1]. Importantly, Green transactions were included within the company’s broader Electricity revenue bucket alongside DAM, RTM and Term-Ahead; Green revenue was not separately reported ^[5]. Consequently, its contribution to EBITDA margin cannot be isolated.

The Certificate segment generated Rs 24.69 Crores of transaction-fee revenue in FY24 versus Rs 17.77 Crores in FY23 ^[5]. Against the disclosed product-level contracted transaction-fee revenue of Rs 428.91 Crores, this represents approximately 5.76%, calculated as Rs 24.69 Crores / Rs 428.91 Crores. This is a revenue-mix contribution, not an EBITDA contribution.

Conclusion: neither the Green Market nor the Certificate segment has a separately disclosed EBITDA or cost base. Therefore, the specific contribution of either segment to the consolidated EBITDA margin, in percentage points, cannot be calculated from the Q4 FY24 disclosures. The Certificate segment was economically visible at roughly 5.76% of product-level transaction-fee revenue, whereas the Green Market’s revenue and EBITDA contribution remained embedded within Electricity.

The latest FY26 Annual Report/MD&A makes market coupling an explicit strategic and regulatory risk, but it does not quantify an expected IEX market-share loss or disclose a final fee schedule. The updated disclosure is mainly about the regulatory pathway, the possible transfer of price discovery to a Market Coupling Operator (MCO), and the resulting uncertainty over exchange economics.

What changed in substance: the disclosure has moved from a general market-coupling concern to a more defined risk framework covering: (1) DAM price discovery being removed from individual exchanges, (2) possible redistribution of volumes among exchanges, (3) uncertainty over MCO governance and inter-exchange settlement, and (4) unresolved fee incidence and potential pressure on exchange pricing. IEX also states that the impact of coupling would be minimal, while relying on customer relationships, technology and diversification as mitigants. ^{[7] [12]}

Key limitation: neither the latest Annual Report nor the management discussion provides a numerical scenario for IEX’s post-coupling market share, revenue loss, fee reduction or MCO fee-sharing mechanism. Management’s confidence in retaining market share is therefore a qualitative view, not a regulatory or financial commitment. ^[10]

IEX remains overwhelmingly dominant on the latest like-for-like cross-exchange data: 99.47% of DAM volume and approximately 99.71% of RTM volume in FY25-26. PXIL and HPX together accounted for only 0.53% of DAM and 0.29% of RTM. A same-period Q2 FY27 market-share calculation is not yet possible because the cited material reports IEX’s Q2 volumes but not corresponding PXIL and HPX volumes.

Market-share and volume comparison

Source for all FY25-26 cross-exchange volumes: ^[13] †RTM share derived as IEX volume divided by total exchange RTM volume of 55,005.12 MU.

On the latest operating update, IEX reported 14,855 MU of DAM volume, including HP-DAM, and 16,490 MU of RTM volume in Q2 FY27. DAM volume grew 2.2% year-on-year, while RTM grew 10.5% year-on-year. ^{[14] [15]} These figures should not be presented as current market share because comparable Q2 FY27 PXIL and HPX volumes are not reported in the cited material. There is also a definition caveat: IEX’s Q2 DAM number explicitly includes HP-DAM, whereas the annual CEA comparison is presented under its own DAM classification. ^{[14] [13]}

Volume incentives and pricing strategy

The explicit commercial concessions disclosed by management are:

• Term-Ahead Market incentives: IEX provides incentives on longer-duration Term-Ahead contracts, presumably to encourage contract tenure and liquidity. ^[16]
• REC-market incentives: Management also referred to incentives in the REC market. No rate, threshold, rebate percentage, or rupee amount was disclosed. ^[16]
• No quantified DAM or RTM rebate disclosed: The cited commentary does not identify a specific per-unit discount, volume rebate, or threshold-based fee concession for the core DAM or RTM markets.
• Operating-expense impact is not separately measurable: No Q2 FY27 expense line, incentive provision, or amount attributable to these concessions is reported. The evidence therefore supports the existence of commercial incentives, but not a quantified operating-expense drag.

The reported Q2 FY27 DAM clearing price of Rs 5.7 per unit and RTM clearing price of Rs 5.2 per unit were market-clearing outcomes, rising 46% and 49% year-on-year respectively; they are not evidence of IEX’s exchange fee or rebate schedule. ^[14] The strongest volume response was in TAM, which reached 5,477 MU, up 101.5% year-on-year, while REC volumes declined 65.5%; the data does not establish that incentives caused either movement. ^[15]

Other matched listed entities

• MCX: DAM/RTM electricity volumes are not reported for this comparison.
• BSE: DAM/RTM electricity volumes are not reported for this comparison.
• NSE: DAM/RTM electricity volumes are not reported for this comparison.