IEX profit rose despite a 9.47% revenue drop as other income doubled
Costs rose 4.42% sequentially, narrowing operating margin by 2.20 percentage points, though the 83.47% margin remained above the sector median.
Filed 23 Jul 2026, 17:56 IST · after market close · Indian Energy Exchange Ltd (IEX)
Key takeaways
- Standalone net profit rose 2.20% sequentially to Rs 126.69 cr even as revenue fell 9.47%.
- Operating margin narrowed 2.20 percentage points to 83.47% because expenses grew 4.42% while revenue declined.
- Other income contributed 26.69% of pre-tax profit, cushioning the operating decline and lifting pre-tax profit 3.31%.
Price around the results
Other income offset weaker operating revenue
IEX's standalone revenue fell 9.47% sequentially, while expenses rose 4.42%, pulling operating profit down 11.80%. Pre-tax profit still increased 3.31% because other income more than doubled, rising 103.17% and contributing 26.69% of pre-tax profit. Net profit therefore rose 2.20% to Rs 126.69 cr despite the weaker operating performance.
Margin declined, but remained high versus peers
Operating margin narrowed by 2.20 percentage points as costs grew faster than revenue. The tax rate also rose 0.81 percentage points, so the quarter's profit growth was not driven by a lower tax burden. At 83.47%, IEX's operating margin was 25.88 percentage points above the 57.59% median for the 128 Financial Services companies that had reported.
Margin remains below the Q2FY26 peak
The margin trend has been uneven: it fell from 86.71% in Q2FY26 to 83.63% in Q3FY26, recovered to 85.67% in Q4FY26, and declined again to 83.47% in Q1FY27. The latest quarter therefore reversed the prior quarter's improvement, but did not mark a third consecutive decline.
Management outlined new market opportunities
The presentation said India's electricity demand is expected to reach approximately 2,700 BU and peak demand 388 GW by 2032, with overall power demand projected at 1.5 times current levels. Management said IEX had filed a petition with CERC to launch Green RTM and identified minerals exchange as an inorganic expansion opportunity. The presentation also said power exchanges still account for less than 10% of India's power volumes.
The initial stock move was close to its usual reaction
After the results, the stock rose 1.90% on day zero despite opening with a 1.18% gap down, and was up 8.45% after five sessions. The initial move was close to IEX's median absolute post-results move of 1.98%; across its last eight result reactions, four were positive and four negative.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹156 cr | ₹172 cr | -9.47% |
| Other income | ₹45 cr | ₹22 cr | +103.17% |
| Expenses | ₹26 cr | ₹25 cr | +4.42% |
| Operating profit | ₹130 cr | ₹148 cr | -11.80% |
| Operating margin (%) | 83.47% | 85.67% | — |
| Interest | ₹1 cr | ₹1 cr | +18.46% |
| Depreciation | ₹6 cr | ₹6 cr | -1.96% |
| Profit before tax | ₹168 cr | ₹163 cr | +3.31% |
| Tax | ₹42 cr | ₹39 cr | +6.83% |
| Net profit | ₹127 cr | ₹124 cr | +2.20% |
| EPS (₹) | ₹1.42 | ₹1.40 | +1.43% |
Operating margin of 83.47% compares with a Financial Services sector median of 57.59% across 128 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.90% | +2.33% |
| Next session | +3.96% | — |
| 5 sessions | +8.45% | +6.29% |
| 15 sessions | +2.30% | — |
| 30 sessions | -2.48% | — |
Volume on the results session was 1.80× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- India's FY2032 electricity demand is forecast at approximately 2,700 BU.
- Peak power demand is projected to reach 388 GW by 2032.
- India's power demand is expected to be 1.5 times higher by 2032.
Expansion
- Approximately 22 GW of FDRE projects have been awarded, with future projects expected to use more cost-efficient batteries.
- IEX identifies minerals exchange as an inorganic expansion opportunity, with draft rules announced and final rules expected.
New initiatives
- IEX filed a petition with CERC to launch Green RTM.
- IEX plans to broaden its offerings through BESS, FDRE, VPPAs, CfDs, capacity, carbon and ancillary markets.
Competition
- Power exchanges still account for less than 10% of India's power volumes.
Problems & risks
- Firm renewable-energy supply requires significant oversizing of renewable projects and mandatory storage additions.
- Energy over-capacity can reach 40–45% during solar hours.
What to watch
- Whether operating margin holds above 83.47% after the latest 2.20-percentage-point decline.
- Whether other income remains below or above its current 26.69% share of pre-tax profit.
- Whether revenue recovers from Rs 155.93 cr while expenses remain below the current Rs 25.77 cr.