Indian Energy Exchange Ltd (NSE: IEX) Q1 2026 Earnings Call dated Jul. 25, 2025
Corporate Participants:
Rohit Bajaj — Joint Managing Director
Analysts:
Rohan Gheewala — Analyst
Bharanidhar Vijayakumar — Analyst
Sumit Kishore — Analyst
Vikas Jain — Analyst
Kunal Thanvi — Analyst
Prateek Jain — Analyst
Devesh Agarwal — Analyst
Lokesh Manik — Analyst
Mohit Kumar — Analyst
Rishabh Shah — Analyst
Ketan Jain — Analyst
Subhadip Mitra — Analyst
Abhishek Nigam — Analyst
Nikhil Abhyankar — Analyst
Presentation:
Operator
. Ladies and gentlemen, good day and welcome to Indian Energy Exchange Q1 FY ’26 Earnings Conference Call hosted by Axis Capital Limited. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star 10 0 on your touchstone phone. Please note that this conference is being recorded. I now hand over the conference over to Mr Rohan Giwala. Thank you.
Rohan Gheewala — Analyst
Thank you,. Good afternoon, ladies and gentlemen. On behalf of Axis Capital, I am pleased to welcome you all for the IEX Q1 FY ’26 earnings conference call. We have with us the management team of IEX, which is represented by Mr Rohit Pajaj, Joint Managing Director; Mr Royal, the Chairman and Managing Director; Mr Vin Khalka, Chief Financial Officer; Mr Amit Kumar, Head of Operations, New Product Initiatives and Exchange Technology; and Ms Abhard Nagart, Head, Investor Relations and Corporate Communication. We will begin with the opening remarks from Mr Rohit Pajaj, followed by an interactive Q&A session. Thank you, and over to you, sir.
Rohit Bajaj — Joint Managing Director
Good evening, friends. I welcome you all to the earning Call for Q1 FY ’26. With me today on this call are Mr Goyal, CMD, IEX; Mr Vineet Harlaalka, CFO and Company Secretary; Mr Amit Kumar, Head of Market Operations and Exchange Technology; Ms Apanagar, Head of Investor Relations and Corporate Communications; and Mr Aditywali. Thanks, the Indian economy continues to stand-out as the world’s fastest-growing major economy, registering a robust growth rate of 6.5% in FY ’25. Notably, India recently became the fourth largest global economy surpassing Japan. This remarkable trajectory has been underpinned by resilient domestic demand, strong investment activity and a steady expansion of both industrial as well as service sectors. Despite global uncertainties from ongoing policy changes and geopolitical tensions, India remains a source of stability and opportunity in the international landscape. High-frequency indicators as-reported by Reserve Bank of India reveals sustained momentum in both manufacturing and service sectors. Looking ahead, the Indian Metrological department has maintained its forecast of an above-normal monsoon for the June to September 2025 period with a rainfall expected at 106% of the long period average. This bodes well for the agriculture sector potentially boosting rural income and supporting broader consumption trends. In addition, the RBI has maintained its real GDP forecast at 6.5% for FY ’26. Overall, India’s macroeconomic outlook remains bright, supported by balanced approach to growth, financial stability and inclusive development.
On the power sector front, India’s peak summer power demand in 2025 reached 242 gigawatt in June 2025. This peak demand was met without any power shortages, thanks to the proactive government measures. These included extending Section 11 of the Electricity Act, mandating imported coal-based plants to run at full capacity till June-end, activating gas-based pot plants and ensuring sufficient domestic coal supply. Weather played a key role this quarter despite forecast of intense summer leading to a free demand expectation of 277 gigawatt. Early monsoon and unseasonal rain kept temperatures low, resulting in lower-than-expected power demand. India’s power consumption of 446 billion unit in Q1 FY ’26 was lower by 1.3% as compared with Q1 FY ’25. On the fuel side, ample fuel has been available at a competitive prices. India’s coal production reached 247 million tonnes in the first-quarter of FY ’26, similar to production during the same-period last fiscal. Coal inventory as of mid-July 2025 stood at high of 225 days. For the quarter, imported coal price for 4,200 GAR coal remained steady at around $1.50 per ton, lower by 9% as compared with the same-period last quarter. Prices of imported gas have also remained stable at nearly $1.11 per MMBtu in the first-quarter of this fiscal.
Overall, the fuel situation for the sector has remained comfortable in Q1 FY ’26. Hence, while there was lower-than-expected power demand in Q1 FY ’26, CA expects power demand in the country to grow at a rate of 6% per annum till 2032. Based on this, MOP has been regularly monitoring the roadmap of thermal capacity addition of 80 gigawatts by 2032. The MOP has all — has also been landing policy support to energy storage solution such as pump storage and battery storage to meet peak demand and also enable renewable power integration with the grid. To support battery energy storage solution BESS, the Ministry of Power has finalized two tranches of viability gap funding mechanism. Under the first tranche, 13,200 megawatt-hour of BESS projects are currently being implemented across the country and about 9,750 megawatt-hour of these BESS projects have been awarded and another 5,000 MWH are in the pipeline. More recently, under the second tonche of VGA, approval has been granted for further 30,000 megawatt-hour of BESS projects to be implemented. As per the CEA, base storage of 470 47 gigawatt shall be required by FY ’22. The increased activity in BESS tenders has been driven by a reduction in battery capex cost and declining storage cost. As recently as June 2025, NVVN and NHPC both discovered INR2.16 lakh per megawatt per month and INR2.08 lakh per megawatts per month for 500 megawatt to our two cycle tenders under the VGS mechanism respectively. As we have mentioned earlier as well, VSS would be able to store surplus power during daytime to deliver electricity during hours of peak demand while leveraging power exchanges. This would increase liquidity and potentially increase volume on exchanges during daytime as well as during evening hours. Let us now look — talk about few important regulatory updates and policy initiatives that continue to be conducive of power market development. The Cabinet Committee on Economic Affairs revised the shutti policy for coal allocation to thermal power plants. The existing policy replaced the earlier policy and has attempted to make it more flexible and transparent for the power sector. In the new policy, fresh coal allocation is now available under two windows, one for central and State Gencos at notified price and another for Gencos at a premium out of notified price. The policy paves the way for coal linkages to generators even without PPAs, generating unrequisitioned surplus URS power, which can then be sold-in the power markets. The revised policy would ensure continued availability of adequate fuel supply for thermal generators and help maintain liquidity on exchanges for competitive price discovery.
In FY ’25, in a dropped order, CRC proposed various changes in the design of the term ahead market across exchanges to help improve liquidity and transparency in this segment. In its order in April 2025, the CRC streamlined timelines for completion of various stages of any day single-site ADSS contracts across exchanges. Other proposals include notifying pre-defined time slots for trade — for trade under TAM contracts, public consultation for these predefined slots have been conducted and appetition has been filed before the CERC for approval of the same. In this order, the regulator also proposed modification in the price discovery mechanism of the Dayhead Conting segment from the current continuous matching to uniform price step auction through draft amendments in the power market regulation 2021. These amendments are open to stakeholder comments till July 2025. In May 2025, CRC issued draft guidelines for virtual power purchase Agreements, VPPAs. These guidelines recognize power exchanges as authorized platform for-sale of electricity by RE generator under VPP arrangements. Renewable generators entering VPPA may sell the electricity component in the collective segment on power exchanges. This would help increase volume on-exchange. Recently, the CRC issued draft amendments to division settlement mechanism regulation regulation with regards to inform power charges for thermal stations. Earlier thermal generators could not recover payments before the trial run, but the draft amendment they are assured of payment of a ceiling price. With these amendments, RE power can also come to-market before its commercial operation date. These amendments by CRC are designed to refine DSM, ensuring a clear framework for managing income power injections and promoting stable grid operations under varying frequency conditions. Further, to the approval in February 2025 of and CRC to introduce electricity derivatives in India. The much-awaited electricity future contracts begow we can have questionsan trading on MCX and NSCs respectively, earlier in June 2025. The launch of electricity derivative is expected to benefit spot market participants, allowing them to hedge against any volatility in the market. With the availability of hedging instruments, the spot market will also benefit through higher participation and volume spillover. CRC recently issued an order on implementation — implementing market coupling. Order was issued on 23rd July in which the regulator has decided to initiate process of implementation of market coupling of day-ahead market. This is to be done by February 2026 as per the order. In the same order, it is mentioned that coupling of the real-time market will be considered at a later-stage. The order also talks about running a shadow pilot for coupling of the term ahead market and stakeholder consultation for coupling. Further in the order, CRC directed its staff to initiate consultation with Grid India and all exchanges on operational and procedural aspect of the day-ahead market coupling, including identifying and proposing amendments required in the various regulations. During Q1 FY ’26, IEX recorded electricity trading volume of 32.4 billion units, a growth of 15% on Y-o-Y basis. Revenue for the company grew by 19.2% Y-o-Y, increasing from INR154.5 crore in Q1 FY ’25 to INR184.2 crore in Q1 FY ’26. PAT increased by 25.2%, rising from 96.4cr in Q1 FY ’25 to INR120.7 crores in Q1 FY ’26. The robust performance in Q1 FY ’26 was led by a substantial cell availability due to weather conditions and also measures taken — undertaken by the government and the regulators. In Q1, nearly 53 lakh renewable energy certificates were traded, recording a growth of nearly 150% over the same quarter last fiscal. Due to efforts of the Bureau of Energy Efficiency, compliance by a designated consumer to meet their RTA targets has increased. The RTM segment continued to demonstrate strong growth. For Q1 FY ’26, RTM volumes at nearly 13 billion units were higher by 41% on year-on-year basis, highlighting the segment’s critical role in helping Discom and consumer efficiently manage their short-term requirements. RTM availability to offer flexibility and immediate responsiveness underlines the opportunity to efficiently integrate renewables with the grid. Volume in Q1 FY ’26 rose 51% Y-o-Y to 2.7 billion units compared with Q1 FY ’25. This segment advances integration of clean sources such as coal and wind into the grid and helps obligated entities, including discoms meet their renewable purchase obligations. With an increase in hydro, wind and sustained supply from coal-based generation, supply liquidity on power exchanges include and prices down. In Q1 FY ’26, supply liquidity in the day-ahead market of IEX increased 45.2% on Y-o-Y basis. As a result, the average day-ahead market price was INR4.41 per unit, down 16% Y-o-Y, while price in the real-time market averaged at INR3.91 per unit, a 20% drop. On May 25, heavy rains pushed RTM prices down to INR1.53 per unit on average basis with nearly zero price during several time blocks. In terms of new products, we continue to await approval from the CRC on our petition to extend the term ahead market contract from three months-to 11 months. As mentioned previously, hearing for our petition on the green RTM segment with the CRC has already been completed and public comments on the petition has also been closed. We await the final order on the matter. Green RTM would provide an opportunity to reduce deviation exposures due to weather events by providing an avenue to trade green power upon in advance. IGX traded record our associate company IGX traded record gas volumes of 24.6 million MMBtu in Q1 FY ’26, a growth of 109% over Q1 FY ’25, led by demand push from the oil marketing companies, refineries and city gas distribution companies. The quarter was also witnessed to first trade-in the three to six-month long-duration contract underscoring market confidence in long-term gas trading on IGX. In Q1 FY ’26, IGS recorded a profit-after-tax of INR14.1 crores, which was higher by nearly 86.7% compared with INR7.6 crores in Q1 FY ’25. As gas prices continue their downtrend and policy initiative initiatives continue to remain positive in the sector, volume at IGS would continue to be robust. Hence, as CEA estimates, India was to experience hotter than usual temperature from April to June this year. However, the advent of early monsoons meant lower peak demand than forecasted. Nonetheless, with CA forecast of peak demand at 366 gigawatt by 2032, the power consumption to reach nearly 2,500 BUs demand growth will continue to drive exchange volume growth. In addition, policy measures undertaken by the government and the regulators to ease supply-side liquidity is expected to further rationalize power prices on-exchange. Our diversification initiatives are also gradually gathering momentum. For the first-quarter of FY ’26, the International Carbon Exchange ICX issued over 44 lakh compared with INR59 lakh issued in the previous financial year. Revenue for ICX in Q1 FY ’26 stood at INR178.8 lakhs. The is globally recognized digital certificate that serves as a transferable crew for generation of 1 megawatt-hour of energy from renewable sources. Through ICX, we have also filed an expression of interest with Central Control Board for developing the Extended Producer Responsibility EPI trading platform and are awaiting final results of the EOI. Our formation of coal exchange stakeholders’ comments have been closed. On formation of coal exchange, stakeholder comments have been closed and we await further directives with regards legislation changes to the Mine and Mineral Development Regulation Act. The MMDRA Amendment Bill 2025 is scheduled to be tabled for discussion in session of the Parliament. The power sector is undergoing changes with the development of new market models in the form of battery storage arbitrage from and dispatchable renewable energy, virtual power purchase agreements and the introduction of electricity derivatives. These market models and instruments are slated to be the future drivers to deepen India’s power market and eventually ensure a successful energy transition. As India marches towards achieving its net zero targets, there is bound to be a much larger role of power exchanges in the country’s energy landscape. Thank you. And now we can have question-and-answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question, you may press star and one on your touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bharani Vijay from Avendus Spark. Please go-ahead.
Bharanidhar Vijayakumar
Yeah. Good afternoon. Am I audible?
Rohit Bajaj
Yes, we can hear you.
Bharanidhar Vijayakumar
Yeah. Congratulations on a good set of numbers. My first question is on-market coupling. Could you refresh us regarding the advantages that IEX has over its competitors, which helped it to have a near 100% market-share in the DAM and RTM segments? And also why the competitors were not able to replicate this and if they would be able to gain market-share now after marketing implementation? This is my first question.
Rohit Bajaj
Yeah, I mean, IEX has maintain a leadership
Position in the and RTM market over the years in the dam market. In fact, from the last 17 years we have the leadership position. If you see initially, the other exchange also had some reasonable market-share of 20% 25%, but over the years, they even lost that. And we today have more than 95% kind of market-share. And this has happened because of many factors. There is not one reason, there are many factors. One is we have a very, very robust technology platform. We have introduced new product ahead of our competitors. We have done a lot of activities with the customers. We regularly interact with their customers, understand their problems, tell them how they can use exchange to purchase cheaper power and optimize their power procurement cost. We interact with the state regulatory Commission. In fact, we are in the advisory Board of more than 12 state regulatory commissions. We advise them how exchanges can be used, our market can be used for the benefit of distribution companies. We provide a lot of data analytics to our customers and we have a technology platform, our IT infrastructure is very robust in-spite of so many cybersecurity attacks. So-far on IEX platform, there has not been a single penetration and it’s come together of all these activities because of which we have been able to have a significantly large market-share in the exchange or in the market and the RTM market. Going-forward, even after coupling also, I’m sure we will continue to do all these activities and maybe even more to have — to ensure that the customers stick to us and the customer loyalty is maintained. So — and I’m very sure that we will be able to maintain definitely a larger market-share even after the company.
Bharanidhar Vijayakumar
Okay. Okay, sir. My second question is on the trader members who trade on behalf of their clients and submit bids to IEX, like one significant trader member is PPC India. So I wanted to know what percentage of volumes overall for IEX and specifically in BAM market that ETC India as a trader number contribute because being investor in one of our competitors post-market coupling, just wanted to see if they can shift this to that competitor. So just wanted to know-how much of it will be impacted.
Rohit Bajaj
As per the power market regulations, a member if he is holding more than 5% equity, then he cannot trade-in that exchange. Since PTC is holding 25% equity in the competing exchange and also on the Board of that exchange they cannot trade on the exchange. However, their percentage share is almost about 10%, 12% on IEX platform.
Bharanidhar Vijayakumar
Great. Okay. Thank you so much. I’ll come back-in the queue.
Operator
Thank you. The next question is from the line of Sumit Kishore from Axis Capital. Please go-ahead.
Sumit Kishore
Thanks for the opportunity. Your clarifications on the technology edge that has and your other advantages versus competing exchanges are well-received, but do you see competition using transaction fee as a tool to take market-share in day-ahead market post-market coupling?
Rohit Bajaj
We will deal with that when we reach there. Why don’t worry about that right now. I don’t think customers really will value that part of it because transaction fees is a very, very small component of the total power procurement cost. But if that is the case, then we will deal with that also
Sumit Kishore
Okay, because we are not able to overcome your barrier of having a tech advantage and they cut price by-5 or 10%, you would have to follow suit in order to retain market-share. Is that the right understanding?
Rohit Bajaj
I told you, I mean, we will deal with the situation when it — when we even at I mean reachers when we reach there. So if you have to do that we will do that
Sumit Kishore
The good day-ahead market also include GDAM
Rohit Bajaj
Well today it is DAM only their market only.
Sumit Kishore
Okay. So green day head market would not be part of the overall day-ahead market that would be impacted
Rohit Bajaj
And that is very good in the orders.
Sumit Kishore
Yeah, it’s not mentioned there.
Rohit Bajaj
Yes, it’s not mentioned.
Sumit Kishore
And based on the current status of technological you know progress that Grid India might have made do you foresee Jan 26 timeline as being implementable? And where — where or when do you see RTM also forming part or progress on RTM for — to come under a bit of market covering if at all?
Rohit Bajaj
First of all, as far as the implementation of market coupling in the TAM segment is concerned, there are a lot of things to be done and one of the things is basically you need a common software for all three exchanges, the IT infrastructure for all three exchanges to be comfortable, you need tiering and settlement mechanism, we have to work-out that part of it. And in fact, also at the commission time, you have to — they have to formulate regulations for implementation of market coupling so all these things will need time so let’s see I mean I will not like to comment on this whether January 26 is feasible or not but my I mean based on the activities involved, I feel that it may take longer time. That is about the Jihad market. As far as RTM market is concerned, I am reading out from the order. Given the shorter time for bid submission and running the market clearing engine the decision to implement the coupling of RTM of power exchanges shall be considered until later-stage. So there is no-decision. The decision will be considered at a later-stage after gaining operational experience from the coupling of. So in this order, they have not taken any decision about the RTM.
Sumit Kishore
Sure. And finally, any comment from your side, are we any closer to NPED now that market coupling has been put in-place for market
Rohit Bajaj
Well I think that is something which regulator will have to decide about it. There is a much bigger issue so let’s hope that happens.
Sumit Kishore
Thank you and wish you all the best.
Rohit Bajaj
Thank you
Operator
Thank you. Ladies and gentlemen, please limit to two questions per participant and come back-in the queue for a follow-up question. Thank you. Thank you. The next question is from the line of Vikas Jain from SQ. Please go-ahead.
Vikas Jain
Hi, good afternoon, sir and thank you for the opportunity to ask the question. Am I audible?
Rohit Bajaj
Yes. Just ordered over here.
Vikas Jain
Yeah. So my question is regarding the recent order by CRC for the market coupling. Is there any mention of MBED in the order that has been recently received? Any comments or any insights on that part of the market coupling?
Rohit Bajaj
There is no mention about MBD in the order.
Vikas Jain
So is it likely that would follow-up from CERC or there are no — there is no hope that MBAD will be implemented. So what is the management view from IEX on this one?
Rohit Bajaj
I can’t say about that is regulatory commissions to take-up that issue. I wish that happened
Vikas Jain
All right thank you so much.
Operator
Thank you. The next question is from the line of Kunal Tandvi from Tree Advisors. Please go-ahead. Opportunity. Go-ahead.
Kunal Thanvi
Yeah. Thanks for the opportunity. My questions were related to-market. I had like a few questions around that. One, if you can explain us how this — the regulation that has come up, how it is going to play-out. Our understanding was that all the bids would be given to one extent in a particular time and the prices would be distored there. So the price discovery that used to happen on IEX will now happen across the three exchanges, right? Because of that, will — is there any possibility of change in the pricing regulations by the regulators itself. If you can throw some light
Rohit Bajaj
Will be all this will be part of the various operational and procedural aspect, which needs to be decided by the commission.
Kunal Thanvi
Sure.
Rohit Bajaj
There are a lot of things like this, which needs to be decided.
Kunal Thanvi
Sure. So at this point in time, okay. So at this point in time, the only clarity is that market is being implemented and it will — all for the damn market. That is the only clarity we have, right?
Rohit Bajaj
Yes, you’re right. You are right.
Kunal Thanvi
Sure. The second question was when market coupling was first talked about like four, five years back when the first draft had come, the idea was that market coupling would be a good tool for expanding the market in long-term and PPAs would also come through. Any thoughts that you would want to share like if in the form and shape that the current regulation talks about, it was to get implemented, what are the benefits to the customers ecosystem that will come through?
Rohit Bajaj
What you’re asking is basically ambit and as far as-is concerned, there is no mention of that in this order and we are not sure when this will be taken-up by the.
Kunal Thanvi
And like if this form — the current form gets implemented, what are the benefits to the ecosystem?
Rohit Bajaj
Well, we don’t see any benefit, but then it is a regulatory decision.
Kunal Thanvi
So is there a possibility that because you know, there could be a confusion among the ecosystem because of three exchanges
Rohit Bajaj
In one aspect.
Kunal Thanvi
Like for example, we have 95% market-share, right? So if our customers were to kind of trade on the exchange, they will continue to come on IVX and then the orders get pulled to some other exchange. This is how it will — your customers will continue to be yours.
Rohit Bajaj
I wish that and I’m sure the kind of efforts we are making, we will like to maintain that. We like to ensure that the customers remain with us.
Kunal Thanvi
From a client perspective, right, you talked about the numerous things that play a role in terms of value addition that you provide to the customer, including, say, technology and the support and the long-term relationship. How do you think the price play a role like price discovery, how important is the role that price discovery plays when you are kind of — when customers come to buy power on the exchange. So the reason I ask this question is, if you see historically, the demand on the accents, the volumes of the accent have been a function of change in the price. So times when price is lower, you see higher volumes. So definitely the price disturbed at the accents plays some role in terms of more-and-more people coming on the accents. So if you want to share some insights on that, it would be very helpful.
Rohit Bajaj
See, price discovery is the key function of exchange. And one of the USP of IX has been that in the last 17 years, there has been no questions raised on the price discovery of IX. We’ll display all market data on our website, we display the price discovery curves and no issue has been raised by anybody till so-far because that shows the robustness of technology platform and our price discovery process. Let’s see what happens after the coupling. I do not like to comment anything on that at this stage.
Kunal Thanvi
Sure. And one last question was on you know, is the — apart from IX since we have like very long history of operation, one competitor has a reasonable history of competition of operation. The last one is very new, like will the other exchanges be able to handle this kind of volumes if it were to get divided amongst the exchanges? Any comment you would like to
Rohit Bajaj
See? I’m sure about one thing that before implementing the regulator is definitely going to do the MOC trill to check about the capability of the different exchanges, the IT infrastructure available and the capability of the exchange and then also do the MOC trial with that bid data post-trade basis. And that it will be seen whatever efficiencies coming or to take care of that
Kunal Thanvi
Okay sure. Thank you.
Rohit Bajaj
Thank you.
Operator
Thank you. The next question is from the line of Pratik Jain from ICIC Potential AMC Limited. Please go-ahead.
Prateek Jain
Just on my question am I audible?
Rohit Bajaj
Yes, yes.
Prateek Jain
Yeah. So sir, my question is regarding other income. So it was INR120 crores in FY ’25 and this quarter it’s INR42 crores, up 37% by and by. So why is this large increase? And can you broadly explain the source of this income, what part of it comes from the interest on margin money and what part comes from the investments that belong to?
Rohit Bajaj
The increase is mainly because of the one target maturity fund investments we had in our books, where was because of the rate cut by the RBI during the first week of June, we had got a decent mark-to-market gain. So we capitalize on that gain the upfronts and recognize that gain. That was the one reason. That’s another. And second, we had some investment in the index one. So around good amount of mark-to-market gain was during this quarter because the market made a good recovery from 22,000 to almost 25,000. These two factors were the main reason that we had a decent performance in this quarter.
Prateek Jain
Okay. And sir, regarding that, let’s say, about FY ’25, so if we have to look at the breakups regarding our own investments versus interest income and from Money, so what sort of proportion would that be?
Rohit Bajaj
It will be two-third will be from the own firm and around two-third to three-fourth 75% will be from the own firm, around 25% from the float in other income.
Prateek Jain
Okay, understood. Okay. Thank you sir.
Operator
Thank you. Ladies and gentlemen, please limit to ask two per questions participants and please come back-in the queue for the follow-up question. Thank you. The next question is from the line of Devaj Devesh Agrawal from IIFL Capital. Please go-ahead.
Devesh Agarwal
Good afternoon, sir, and thank you for the opportunity. Firstly, sir, to start with, just wanted to know your thoughts. This — can this order be overturned by CRC? Is there any recourse that we have?
Rohit Bajaj
If CRC decides to do that they can do it definitely.
Devesh Agarwal
No, no In terms of any legal opinions that you would have seeked over the last two days which gives us some comfort that there is a case to challenge this.
Rohit Bajaj
We are evaluating this order. We haven’t made any view on this at the moment.
Devesh Agarwal
Right, sir. So sir, in case assuming this goes through, one of the moat that we talked about was the technology. So when we talk about technology, is it the price discovery part is what we highlight or is it the integration that we would have done over the years with the buyers and the seller that is like a moat for us.
Rohit Bajaj
I think combination of everything
Devesh Agarwal
The reason I asked because you mentioned that there is a common software that will be developed to do this market coupling. So in terms of price discovery will be taken care by this common software?
Rohit Bajaj
Yes. Yes, you are right.
Devesh Agarwal
So then what we are left with is the integration part that we have
Rohit Bajaj
We have done so many things. Out of that, one thing has been taken out. So rest of the USP still remains. Rest of the activities, which we have done, they still remain with us and I’m sure we will be able to get benefit of that.
Devesh Agarwal
And sir, is this something that will be very difficult for the competition to replicate in terms of or they can do that over-time, say probably two, 3/4 or four quarters and they’ll be able to invest and replicate this and whatever technological advantages.
Rohit Bajaj
They have 17 years to replicate this.
Devesh Agarwal
It’s much difficult than that. Right. And sir, finally, one last one. If we were to assume that with market coupling, if we have to sustain a market-share of, say, more than 40%, 50%, then what would be those key advantages that we would have to sustain that higher market-share compared to the competition.,
Rohit Bajaj
We are working on all these strategies and we’ll let you know in due course of time.
Devesh Agarwal
No, sir. Sure. Thank you so much.
Rohit Bajaj
I can assure you one thing that we are not working on retaining 40% 50% market-share. We are working to retain the present market-share.
Operator
Thank you. The next question is from the line of Lokesh Manik of Capital. Please go-ahead, sir.
Lokesh Manik
Yes, hi, good afternoon to the team. Sir, first question is, will we order the savings mentioned is 52 million units period. Any sense of the savings could have been derived by public that number two and number three exchange because savings not get the trade efficiency that is present in the system which really had very efficient type of binding of the exchange number of increase of 52 million units. He is no, it’s not a saving. It is a overall volume here
Rohit Bajaj
Increases by 52 million units. In-period of 24 billion units, in 24 billion units, 24,000 million units, there is an increase of 52 million units, which is insignificant. I don’t think that numbers can be a reason for doing the market coupling.
Lokesh Manik
Absolutely correct. Sir, my second question is, you talked about a lot of — there are other talks about amendments and operational procedures to be implemented. In any scenario in any of these amendments, will there be a state involvement where involvement from states will be required from the space?
Rohit Bajaj
The question is not clear. Can you repeat please?
Lokesh Manik
Will there some form of approval from there and also will be required for these amendments to take place. The order talks about some amendments in the.
Rohit Bajaj
All these approvals will have been done by the commission-only. There is going to be a new regulation for the market coupling, right?
Lokesh Manik
So make a state is commissions be involved in this?
Rohit Bajaj
No, no, no, I don’t — Commission has not all to claim this.
Lokesh Manik
Okay, okay. That’s the clarification. Thank you so much.
Rohit Bajaj
Thank you.
Operator
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Good afternoon, sir, and thanks for the opportunity. My first question, sir, have you heard anything on the coal exchanges and EPR trading?
Rohit Bajaj
Coal exchange, we haven’t heard anything about it, but I was reading in the newspaper that the MMDR Act is going to the Parliament for some amendment and I don’t know whether that coal controller of India will act as the regulator for the purpose of coal exchange, whether it is there or that or not, we have not been able to find out that. But if that is there, then that is definitely one positive step-in the right direction for coal exchange.
Mohit Kumar
And anything with — on the EPR side?
Rohit Bajaj
Yeah, on the EPR side, I think CPCB is yet to take a decision on that. They are awaiting the response.
Mohit Kumar
Understood, sir. My second question is, what explains the sharp increase in the gas volume in the quarter and the sustainability of this number in the coming quarters.
Rohit Bajaj
Yeah, gas exchange increase with respect to last year. Yes, there is a significant increase, but then the numbers are still small in comparison to our expectations. So I’m sure in the coming quarters you will see much better number
Mohit Kumar
And how that
Rohit Bajaj
The domestic ceiling price gas by reliance was sold for Three-Month period in one lot and that also led to a significant increase in the volume.
Mohit Kumar
How significant is the recent PNGRV regulation is which allows for only two tariff zone compared to, I think higher three or four, if I’m wrong. It’s a right, sir. So of course, that’s going to take that.
Rohit Bajaj
These are conducive for gas market development. Initially, there used to be four zones and it came three in all these two. And in fact, like in power sector, we have injection and draw charges. So in gas sector also, invariably it is only entry and exist tariff. So we are going towards that slowly. That’s a good thing.
Mohit Kumar
Understood, sir. Thank you. Bestood, sir.
Rohit Bajaj
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Shah from PMS. Please go-ahead.
Rishabh Shah
Am I audible?
Rohit Bajaj
Yeah.
Rishabh Shah
So I have one question. The other exchanges will have one-time of system returns. So both systems like started as
Rohit Bajaj
Slightly louder plays
Rishabh Shah
As a systems of the art system won’t be the same. So user is comfortable with platform. What incentive really has to shift to a new platform?
Rohit Bajaj
Your question is not clear. I think what you are talking about is that if the competitor’s platform is not similar to our, what benefit we have in?
Rishabh Shah
Yes, yes, yes.
Rohit Bajaj
See the regulator will have to decide about the common platform, the common software and also the IT infrastructure all across all three exchanges compatible to the requirement of the system. So these kind of things can be done only after that.
Rishabh Shah
So can we assume that if these things are not compatible, then this compliment might get removed again if systems of the competitor are not compatible?
Rohit Bajaj
I mean, these are some of the requirements for implementing market coupling and I am sure regretor will implement market coupling after fulfilling all the requirements.
Rishabh Shah
Okay, fine, thank you
Operator
Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please go-ahead.
Ketan Jain
Thank you. Hi, sir, my first question is on just on the competition. What steps apart from reduction in transaction fee can the competition do to attract new customers? Is it something like reducing construction fee or margin requirement? And what stops then to invest in better technology and people some clear on this.
Rohit Bajaj
Number-one, the present order is for coupling of them market. TAM is constituting only about 35% of our total volume yeah, yeah. So dam market constitutes only about 35% 40% of our total volume. So we still have almost about 60% 65% volume coming from the other products. So we will continue to maintain that technology platform and continue to do upgradation of that. And even in case of that market also, except for the price discoveries, there are other parts of the technology platform, technology services, customer services, market development activities, which we will continue to do that and I’m sure that all will basically ensure that we retain the leadership position?
Rishabh Shah
Understood, sir. And sir, so I just wanted to understand one more thing. In terms of — so as a customer, if I’m a customer and if I want to move my accounts from IEX to some other competition. So will I have to shut-down, will the company have to pay the margin money back to them?,
Rohit Bajaj
Margin money is the customer’s money. They can take it back anytime.
Ketan Jain
Yeah. Understood.
Rohit Bajaj
But they are doing trade here, they will have to ensure that margin is available.
Ketan Jain
Understood. And what about the — so just one — just a understanding question, say if I’m a customer and only if the dam is coupled and our team is not coupled. So for me, it will become an inconvenience for me to go to some other exchange just for the DAM. But for our team, the liquidity will be with. We’ll continue to be with. So is that a fair assumption?
Rohit Bajaj
I think you can yourself analyze the situation and take a call on that. So RTM, you are participating on the exchange IX platform on round the clock basis, keeping margin for that and then separately participating in other. Other exchange trying to bring additional margin there. You have to take a call on that.
Ketan Jain
Understood. Correct. And who will be doing, correct. Understood, sir. Yeah, this is a fair point. Who will be doing the settlement and clearing process?
Rohit Bajaj
Respective exchanges.
Ketan Jain
Respective is whenever they turn-off Ron Robin?
Rohit Bajaj
No, no, no, no. For the bids received by them, whatever bids are settled, clear for those with respective as changes will clear through the financial settlement.
Ketan Jain
Even in decoupling for even for the DAM segment.
Rohit Bajaj
Yes, yes,
Ketan Jain
Understood. Okay. And as you said there should be a new common platform which needs to be developed, right, and install it across all the exchanges for coupling. Yes, that is my understanding. Understood. And who will be developing this? Regulator will nominate someone
Rohit Bajaj
These are all digest to be out
Ketan Jain
Understood. Okay sir. That’s it from me. I’ll come back. Thank you.
Operator
Thank you. The next question is from the line of Mitra from Nuvama. Please go-ahead.
Subhadip Mitra
Good afternoon, sir, and thank you for the opportunity. Just one point of clarity. I think this is a point that you’ve already talked about before. So when we are looking at-market doubling in each of the exchanges you know, getting the opportunity to be the market couple of determination on a round basis. So on a particular day, if let’s say Exchange A is doing the price determination, it doesn’t mean that the volumes have to also automatically flow-through that exchange, right? It can flow-through any of the other exchanges depending on where the bids are coming. Is that the right understanding?
Rohit Bajaj
Yes, yes, yes. Volumes will be flowing through the exchanges from which the bid has come.
Subhadip Mitra
Understood. Understood. Okay. Secondly, a broader question on MVED versus SCED. My understanding was that with SCED already in a pilot phase and some thoughts of extending these beyond central government plans to even state-owned. Do you see MVED really having an impact since you already have an alternate mechanism through SCED? Or do you think there is space for those?
Rohit Bajaj
Yeah. SCED is basically a subset of MBD. If MBD is not being implemented, maybe to some extent SCD is serving the purpose. There is an optimization between the central genetic stations. MBD was for central genetic stations, state generating stations, it is everybody taken together.
Subhadip Mitra
Correct. So if SED — I mean hypothetically, if we assume that SEED gets extended to central plus state generating stations and that is anyway running on the Grid India platform. Then MVED, even if it comes may not have much of an impact.
Rohit Bajaj
No, see, SCED is basically operator between the central generating stations only. In the same SCD, if you bring the state generating stations also and IPP then it will be as good as LB
Subhadip Mitra
That’s correct. But then would exchanges still have a role to play there since that is already running on a pilot through a separate platform?
Rohit Bajaj
That is, that is a different exercise that basically just before this actual scheduling actually spas, they are doing this optimization study. But then bringing state generation to the central sket is a difficult process. That is why an initiative has been taken to do scale within the state, each of the state study is being done to achieve some efficiency there. Understood. Understood. I think this is perfect. I mean during your next visit, we can discuss in.
Subhadip Mitra
Certainly sir. Certainly, sir. Thanks a lot. Thank you so much.
Operator
Thank you. The next question is from the line of Abhishek from Oswal. Please go-ahead?
Abhishek Nigam
Yeah. Thank you for the opportunity. So just a theoretical question, I’m not asking you for your response to this, but theoretically, what are the options available post the CERC order? Can you — can someone go to an appellate tribunal, can you appear in a court of law
Rohit Bajaj
Again just to reiterate, not asking you for your legal options right now, just there are many options available. One is we go-ahead with this. Second is we go to CRC for review, third is we go to. So there are many options available. I told you at the beginning of this conference that we are evaluating this order and yet to take a few on this.
Abhishek Nigam
I totally understand. It’s very, very early. And the second question is that the order says that the exchange have to basically cooperate with the market coupling operator. Now it’s still very early days. I know this is still being sort of worked out and you are going to look for clarification. But is there any proprietary stuff, any software which gets — which you know they might expect or they might need to be able to implement this? Do you think you have that clarity on that?
Rohit Bajaj
I’m not clear about your question. You said what they are return.
Abhishek Nigam
So Mike — so my question is when the order says that the exchange has to cooperate with the market coupling operator, is it just data or is it — does it include some something that is to you?
Rohit Bajaj
I don’t — I don’t find such mention in the order. Can I tell you where it is.
Abhishek Nigam
Okay. Okay. Maybe I’ll just connect with the on.
Rohit Bajaj
Last Paragraph 9 is
Abhishek Nigam
Yes.
Rohit Bajaj
The commission hereby directs all power exchanges to share the necessary data and other information as required by the staff of the commission and Grid India to analyze various operational and procedural aspects for implementation of coupling in DAM.
So I think the last paragraph — paragraph nine is that your Jason here right directs all power exchanges to share the necessary data and other information as required by the staff of recommission and India to analyze various operational and procedural aspects for implementation of coupling in DAM
Abhishek Nigam
Yes. Actually, that’s what I was referring to.
Rohit Bajaj
This does not talk about technology or anything
Abhishek Nigam
Yes, actually, so that was my question. So it only talks about data investing, right?
Rohit Bajaj
Yes, yes.
Abhishek Nigam
Okay. That’s my providing. Okay, perfect. That clears it. And just last question, post this disruption in one major segment, is there a sort of a rethink or a pause in terms of strategy with respect to new product development, new segments which you are trying to enter and because something similar happens in one of those segments as well, then what are the thoughts there?
Rohit Bajaj
Like product development is a continuous process.
Abhishek Nigam
Sure.
Rohit Bajaj
Five years back, we had only one-product, they had market and termined market. Now today, we have so many products available. So in future also, this is a continuous process. We have already filed petition for the green RTM market and also a petition for pig power. So 11 months contract is already with GRC. It is a continuous process in due course of time as and when we find that there is a need of a new product in the market, we will take-up that.
Subhadip Mitra
Perfect, sir. Thank you so much. Thank you for giving me time.
Rohit Bajaj
Thank you. I think just already about 3:30. So can we have one last question or two last question?
Operator
Okay. The next question is from the line of Nikhil Abhiankar from UTI Mutual Fund. Please go-ahead.
Nikhil Abhyankar
Sir, just one question from my side. So can you just share the terms of, I mean, revenue-share agreement that we have with NSE and for the power derivatives?
Rohit Bajaj
I don’t think there is a need to share that. We have agreement with MCX so that if they can use our price
Nikhil Abhyankar
But what portion of the our derivatives revenue should go through?
Rohit Bajaj
I don’t think these things are necessary to be discussed here.
Nikhil Abhyankar
Yes, so thank you.
Rohit Bajaj
We are not paying anything to them, that is for sure I think if there are no more questions, can we close the conference?
Operator
Thank you. I now hand over the conference to management for closing remarks.
Rohit Bajaj
Thank you. Sorry, please. Thank you, friends. I would like to thank each one of you for being part of today’s call. Throughout this quarter, we witnessed efforts from the government and regulators to establish a favorable policy and regulatory climate to develop the energy sector. We at IEX remain committed committed to contribute to the development of sustainable and energy-efficient future for India. Have a wonderful evening. Thank you once again.
Operator
Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.