Indian Energy Exchange Ltd. makes a corporate announcement

Green Market volume in Q2 FY25 was 2,584 MU, comprising:

• G-DAM: 2,534 MU, or about 98.1% of Green Market volume; up 394% YoY.
• G-TAM: 49.7 MU, or about 1.9%; a separate YoY growth rate was not reported.
• Combined Green Market: 2,584 MU, up 246% YoY versus Q2 FY24. ^[1]

The conventional DAM segment traded 14,132 MU in the quarter, with a reported YoY change of 28%. ^[2] On the reported growth rates:

• Combined Green Market growth of 246% was 218 percentage points higher than DAM growth and approximately 8.8 times the DAM rate.
• G-DAM growth of 394% was 366 percentage points higher and approximately 14.1 times the DAM rate.

Thus, the Green Market was still small in absolute volume relative to conventional DAM, but its growth was materially faster, driven overwhelmingly by G-DAM. The DAM extract contains a directional wording inconsistency around the 28% figure; the comparison above uses 28% as the reported YoY rate.

The disclosed data points to lower per-unit market realization in Q2 FY25, especially in RTM, but the filings do not provide a formal quarter-average DAM/RTM realization or segment-level revenue bridge. The available monthly market-clearing prices were:

• DAM: Q1 FY25 was Rs 5.30/unit in May ^[3]; Q2 FY25 was Rs 4.00/unit in August and Rs 4.18/unit in September ^[4]. This suggests a decline of roughly Rs 1.12-1.30/unit versus the comparable Q1 observations.
• RTM: Q1 FY25 was Rs 7.50/unit in May ^[3]; Q2 FY25 was Rs 3.38/unit in August and Rs 3.98/unit in September ^[4]. The disclosed observations therefore indicate a much sharper reduction of roughly Rs 3.52-4.12/unit.

These are monthly market-clearing prices, not IEX’s reported accounting realization per traded unit. A precise Q2-versus-Q1 average cannot be calculated because July Q2 prices, complete quarterly segment volumes, and DAM/RTM-specific transaction revenue are not reported in the cited financial-result extracts.

Financial drivers reported

On a consolidated basis, Q2 FY25 revenue from operations increased to Rs 139.40 Crores from Rs 123.56 Crores in Q1 FY25, a derived QoQ increase of 12.82% ^{[5] [6]}. The reported cost and income movements were:

• Other income declined to Rs 28.37 Crores from Rs 30.91 Crores, a derived 8.22% decrease ^{[5] [6]}.
• Total expenses fell to Rs 25.49 Crores from Rs 30.13 Crores, a derived 15.40% decrease ^{[5] [6]}.
• Within costs, employee expenses rose to Rs 12.16 Crores from Rs 10.99 Crores, while other expenses declined to Rs 7.34 Crores from Rs 13.22 Crores ^{[5] [6]}.
• Finance costs were broadly flat at Rs 0.66 Crores versus Rs 0.67 Crores, and depreciation increased marginally to Rs 5.33 Crores from Rs 5.24 Crores ^{[5] [6]}.

Interpretation: the financial statements show higher operating revenue despite softer disclosed power-market prices, while lower other expenses provided cost support. They do not, however, specifically attribute the revenue increase or variance to DAM versus RTM realization, volume, mix, or transaction-fee changes.

The latest management disclosure does not provide a firm implementation date. Management characterised Market Coupling as still subject to regulatory finalisation, detailed procedures, systems testing and approvals. The earlier January 2026 target therefore does not appear to be the current operative timetable.

Timeline disclosed

• Earlier regulatory target: CERC’s July 2025 order had envisaged implementing coupling in the Day-Ahead Market by January 2026. IEX challenged the process, and APTEL subsequently held that implementation would have to proceed through formal regulations; IEX could challenge the regulations if aggrieved. ^{[7] [8]}
• Latest regulatory stage: CERC issued draft regulations in April 2026, proposing Grid India as the Market Coupling Operator, followed by stakeholder submissions and a public hearing on 10 June 2026. ^[9]
• Management’s timing assessment: Management said it could not provide a specific timeline. It expects extensive examination of the new market design, software, hardware, security, settlement and system interactions, followed by regulatory approvals and mock drills. The comparison given was that implementation would take a “long time,” although not necessarily as long as the historical availability-based tariff transition. ^[10]
• Open procedural issues: Management also said the fee structure, cost allocation and other MCO-related matters remained unresolved and would need to be addressed through final regulations, procedures or subsequent CERC orders. ^[11]

Anticipated operational changes for IEX

• DAM is the initial scope: Management said the current regulatory intent is to couple the Day-Ahead Market first. Real-Time Market coupling would be considered subsequently because its bidding and auction timelines are tighter. ^[9]
• RTM mechanics may become less compatible with coupling: A separate CERC discussion paper proposes reducing the RTM bidding window from 15 minutes to 5 minutes and gate closure from 75 minutes to 50 minutes. Management’s view was that these tighter timelines would make RTM coupling more difficult. ^[9]
• Price discovery would move to the MCO: Under the proposed arrangement, customers would continue submitting bids through their chosen exchange. The exchanges would forward combined bids to the MCO, and the MCO would collate the bids and conduct price discovery. ^[10]
• IEX would retain customer-facing and post-trade functions: Management said customer APIs for bidding and post-trade activities would continue to be useful because customer integration remains with the exchange; only the exchange-to-MCO interface would require Grid India’s APIs. ^[10]
• Competitive focus could shift: The exchange would no longer control DAM price discovery under the proposed model. Competition would therefore increasingly depend on customer interfaces, technology, service quality, clearing and settlement, and transaction economics. The proposed MCO structure and Grid India’s role remain subject to regulatory finalisation. ^{[10] [12]}

Bottom line: IEX has disclosed a DAM-first, RTM-later framework, but not a confirmed go-live date. The main operational change would be a separation between centralised price discovery by the MCO and exchange-led customer bidding, integration and post-trade services. Implementation timing remains dependent on final regulations, detailed procedures, system readiness, testing and regulatory approval.