IEX share price jumps over 6% on strong trade volumes, REC growth

Indian Energy Exchange (IEX) shares surged 6.5% to Rs 215.4 on Monday, boosted by strong trading volumes on the NSE. Around 2.3 lakh shares worth Rs 485.2 crore changed hands during the session.

At 10:49 a.m., the stock was trading 5.5% higher at Rs 213.2. IEX has delivered notable returns to investors, rising nearly 18% year-to-date, over 30% in the past three months, and 74% in the last two years. Its current market capitalisation stands at Rs 19,164 crore.

As per the latest shareholding data for the quarter ended 31 March 2025, 16.1% of the stock is held by FIIs, 28.1% by mutual funds, and 50.3% by institutions.

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The rally also follows strong operational data reported on June 4. IEX recorded a 14% year-on-year (YoY) increase in electricity traded volume, reaching 10,946 million units (MU) in May, up from 9,568 MU a year ago.

Additionally, 17.43 lakh Renewable Energy Certificates (RECs) were traded during the month, marking a 65% YoY rise, the company said in a regulatory filing.

The Day Ahead Market (DAM) saw a market clearing price of Rs 4.12 per unit in May 2025, down 22% YoY. In the Real-Time Market, the price declined 28% YoY to Rs 3.43 per unit. DAM volumes dropped 20% YoY to 3,510 MU, compared to 4,371 MU in May 2024.

The Real-Time Electricity Market (RTM), however, recorded its highest-ever monthly volume, rising 42% YoY to 4,770 MU from 3,352 MU a year ago.

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IEX share price target and performance

According to Trendlyne, the average target price for IEX is Rs 209, implying a potential downside of 2%. Of the 10 analysts tracking the stock, the consensus rating is ‘Buy’.

“The short-term power market is growing at 18%, well ahead of demand growth of 5–6%, and is poised for significant expansion,” JM Financial said in a note. It added that IEX, with 84% market share, is well-positioned to benefit from rising demand, higher renewable energy mix, and new instruments like virtual PPAs.

The brokerage expects IEX’s trading volumes to grow at a 13% CAGR during FY25–28, driving revenue and PAT growth of 16% and 14% respectively. JM Financial has a ‘Buy’ rating on the stock with a target price of Rs 231.

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