IEX share price jumps over 4% after strong growth in electricity trade volumes. Should you buy?

Indian Energy Exchange (IEX) share price rallied over 4%, extending gains for the second consecutive session, after the company reported strong growth in electricity trade volumes. IEX share price surged as much as 4.70% to a high of ₹211.75 apiece on the BSE.

IEX reported over 14% growth in electricity traded volume at 10,946 million units (MU) in May as compared to 9,568 MU in the year-ago period.

A total of 17.43 lakh Renewable Energy Certificates (RECs) were traded during the month, registering a 65% year-on-year (YoY) increase, IEX said in a regulatory filing.

Market clearing price in the Day Ahead Market (DAM) was at ₹4.12 per unit during May 2025, a decline of 22% YoY. Market clearing price in the Real Time Market fell 28% YoY at ₹3.43 per unit last month. The DAM achieved 3,510 MU volume last month, a decline of 20% from 4,371 MU volume in May 2024.

The Real-Time Electricity Market (RTM) reported the highest ever monthly traded volume as the volume increased to 4,770 MU in May 2025 from 3,352 MU a year ago, an increase of 42%.

Should you buy IEX shares?

Electricity derivatives are expected to complement the spot market (where IEX is present) over time by drawing in more participants, analysts said.

“Parallelly spot power requirement from renewable integration, real time balancing thereby stabilizing or even increasing spot volumes as seen in EU. IEX’s business offers optionality as it aims to launch Green RTM product, 11-month contract (40 BU opportunity) International Carbon Exchange, and Coal Exchange. Over the mid to long term, an uptick in renewable power (from 44% share in FY24 to 60% by FY30) offers continuous opportunity for volume uptick for power exchanges in India,” said Antique Stock Broking.

IEX has net cash on the balance sheet at ₹1,000 crore and a RoE of 40%. At a PER of 32x FY27E EPS, IEX share price is trading near its historical average, said the brokerage firm. It models 17% annual volume growth over FY26–27E, leading to a similar increase in PAT.

Valued at 40x FY27E EPS, Antique Stock Broking maintains a ‘Buy’ rating on IEX shares with a target price of ₹254 apiece.

Technical Outlook

IEX share price has broken out of a 22-week-long double bottom flat base at ₹191 and is now heading towards the major resistance at the swing high of ₹229, noted Anshul Jain, Head of Research at Lakshmishree Investments.

“Post breakout, IEX stock price has formed a minor base, which is acting as a propeller for continued momentum. The structure remains bullish, supported by strong price action, and further upside is expected as long as the stock sustains above its breakout zone,” Jain said.

IEX share price has gained 28% in three months and 16% on a YTD basis. IEX stock has delivered 71% returns in two years and multibagger returns of 281% in five years. 

At 9:55 AM, IEX share price was trading 4.70% higher at ₹211.75 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.