Indian Energy Exchange Ltd (NSE: IEX) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Rohit Bajaj — Joint Managing Director
Analysts:
Rohan Giwala — Analyst
Pritam Jain — Analyst
Sumit Kishore — Analyst
Devesh Agarwal — Analyst
Pranav Jain — Analyst
Abhir Pandit — Analyst
S. Ramesh — Analyst
Vijay — Analyst
Vinay Nadkarni — Analyst
Presentation:
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operator
Ladies and gentlemen, good day and welcome to Indian Energy Exchange Q3 FY26 results call hosted by Access Capital Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star10Zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Rohan Giwala from Access Capital Ltd. Thank you. And over to you sir.
Rohan Giwala — Analyst
Thank you. Good evening ladies and gentlemen. On behalf of Access Capital, I’m pleased to welcome you all to the IEX Q3 FY26 Earnings Conference Board. We have with us the management team of IEX which is represented by Mr. Rohit Bachaj, Joint Managing Director, Mr. S.N. goel, Chairman and Managing Director Mr. Vineet Harlalka, Chief Financial Officer Mr. Amit Kumar, Head of Market Operations, new Product initiatives and Exchange Technology and Mr. Padna Garg, head Investor Relations and Corporate Communications. We will begin with the opening remarks from Mr. Rohit Sajaj followed by an interactive Q and A session.
Thank you. And over to you, sir.
Rohit Bajaj — Joint Managing Director
Good evening friends. A very happy New Year to all of you and a warm welcome to the IEX earning call for Q3FY26. With me today on this call are shiri Satyanarayan Goel, CMD, IEX Mr. Vineeth Halalka, CFO and Company Secretary, Mr. Amit Kumar, Head of Market Operations and Exchange Technology, Ms. Aparna Garg, Head of Investor Relations and Corporate Communications and Mr. Aditya Vali. India continues to be the fastest growing major economy in the world, posting a strong gdp growth of 8.2% in the second quarter of FY 2026. In the backdrop of continued global uncertainty, the International Monetary Fund IMF has recently revised India’s GDP growth estimate for FY26 to 7.3% from from its earlier forecast of 6.6%.
This growth path has been driven by robust domestic demand, heightened investment activity and steady performance across industry, services, agriculture and construction. Policy reforms such as rationalization of GST rates, new labor laws and the recently concluded India EU Free Trade Agreement have also finally firmly positioned India on a long term trajectory towards becoming the world’s third largest economy by 2030. On the power sector front, electricity demand picked up during December with an increase of 6.6% on a year on year basis. However, prolonged monsoon in 2025 led to a lower electricity requirement across the country. Consequently, electricity demand during Q3 FY26 remained flat at 392 billion units for nine months.
FY26 demand also remains subdued at 1286 billion units, similar to the corresponding period of FY25 going into January, demand has increased to 6% compared with a year ago. During the first nine months of FY26, an additional 44.7 gigawatt of installed capacity across thermal and renewable sources was added, taking total installed capacity to over 500 gigawatts. Renewable energy accounted for more than 50% of the total installed capacity. Notably, India achieved the milestone of sourcing 50% of its cumulative installed electric power capacity from renewable sources five years ahead of the 2030 target. On the fuel side, ample fuel has been available at competitive prices.
India’s coal production reached 272 million tonnes in Q3 FY26, similar to 273 million tonnes produced in Q3 FY25 at nearly 722 million tonnes. Production in the first nine months of FY26 has also remained similar compared with the same period in FY25. Coal inventory as of January 17 stood at 25 days for the quarter. Imported coal price for 4,200 GAR coal declined to nearly $47 per ton, a decline of 10% compared with the same quarter last fiscal Overall, the fuel situation for the sector has remained comfortable. Let us now talk about few important regulatory updates and policy initiatives.
The government has released draft National Electricity Policy 2026 aimed at aligning the power sector with Vixit Bharat over the next two decades. Draft prioritizes cost reflective tariff reforms, a phased reduction in cost subsidies and time of day PCR pricing to improve efficiency and strengthen discount finances. It sets ambitious consumption targets per capita electricity used rising from 2000 units by 2030 and over 4000 units by 2047 and calls for stronger generation, transmission and distribution planning. Key strategies span resource adequacy planning, cost reflective tariffs with ATC loss reduction to single digit RE expansion with storage, thermal, hydro, nuclear enhancements, etc.
For deepening power markets. Suitable policy and regulatory framework shall be established for generation capacity addition through market mechanisms such as bilateral contract settlements. Standardized contracts for collective transaction will be executed on power exchanges. Electricity from long term PPAs may be encouraged to be routed through power exchanges or any other platform recognized by the Central Commission. Recently, key amendments were proposed to the Draft Electricity Amendment Bill 2025 wherein State Electricity regulatory commissions have been specifically empowered by to determine tariff sumoto to ensure timely cost recovery and avoid delays cross subsidies are to be progressively eliminated within five years for sectors such as manufacturing, railways and Metro operations.
In a push for C and I and open access consumers, DISCOM may be exempted from their obligation of supplying to C and I user with more than 1 megawatt load. Also, Discomfs would provide non discriminatory open access to multiple distribution licensees on payment of billing charges. These proposals should open up DISCOM resources for supply, avoid tying up standard power and enhance competitiveness of the C and I segment. Draft provides renewable purchase obligation RPO not be less than central RPO trajectory and proposes a specific penalty of 35 to 45 paisa per unit for RPO non fulfillment CRC issued final guidelines for Virtual power purchase agreements VPPAs in December.
These guidelines recognize power exchanges as authorized platforms for sale of electricity by RE generators under VPP arrangements. Renewable generators entering VPPAs would be selling the electricity component in the collective segment on power exchanges. This should help increase volume on exchanges. In reference to the carbon market, Final notification regarding greenhouse emission intensity targets have been published by Ministry of Environment, Forest and Climate Change for obligated entities across seven sectors such as aluminium, chloralkali, cement, pulp and paper, petrochemicals, petroleum and textiles. Final notifications are awaited for the iron and steam sector. The baseline emission of these seven sectors with base year FY24 is 480 million tonnes equivalent with targeted reduction to 465.32 million tons equivalent by FY27.
These sectors cover around 16% of India’s GHG emissions. This development has laid the foundation of trading of carbon credit certificates on power exchanges. The MOP had earlier issued the Final Notification on renewable consumption obligation RCOs. The notification defined RCO fulfillment method to also include RECs acquired under VPPs among others, and also provided for fungibility of obligation under wind, hydro and other components. We have sought CRC approval to align our green contracts with the revised RCO components. The order in the matter is reserved. Once aligned, these contracts will provide due clarity to market participants for resale procurement which has the potential to increase RE participation going forward.
ARC issued an order on implementing market coupling on 23 July in which the regulator decided to initiate the process of implementation or market coupling of dayhead market according to the order. This was to be done by January 2026. IEX has filed an appeal in Appellate Tribunal for Electricity APPTEL and today the hearings concluded. We expect the final order to be released shortly. Moving on to performance in Q3, FY26 IEX recorded electricity trading volume of 34.1 billion units a year on year growth of nearly 12% for the first nine months of FY26, electricity volume touched nearly 102 billion units higher by 14.3% on a year on year basis.
Revenue for the company grew by 14% year on year increasing from rupees 160.5 crores in Q3 to rupees 183.1 crores in Q3FY26. Profit after tax increased by 11% rising from rupees 107.3 crores in Q3FY25 to rupees 119.1 crore in Q3FY26. For the first nine months of FY26, profit after tax was higher by 16.4% from rupees 312.1 312.1 crore in nine months FY25 to rupees 363.1 crore in nine months FY26. The board of directors have announced an interim dividend of rupees 1.5 equivalent to 150% of face value of the equity share in Q3FY26. Nearly 18.6 lakh renewable energy certificates were traded lower than nearly 27 lakh certificates traded over the same quarter in FY25.
During the nine months till December. Over 115 lakh RECs were traded higher by 4% over the same period last fiscal. The RTM segment continues its strong growth maintaining 40% share in the electricity volume at IEX. For Q3FY26, RTM volume at nearly 13 billion units were higher by 36% on a year on year basis in the first nine months, RTM volumes have grown 38.6% on a year on year basis to reach 40.5 billion units. This segment has been playing a critical role by offering flexibility in power procurement, providing immediate responsiveness to efficiently integrate renewable with the grid.
Green market volume in Q3FY26 rose 7.2% on a year on year basis to nearly 3 billion units compared with Q3FY25. In the first nine months of FY26 the segment traded over 8 billion units to be higher by 23% over the same period in FY25. The green market helps obligated entities including distribution companies meet their renewable purchase obligations. With capacity addition, increase in solar, hydro and sustained supply from coal based generation supply, liquidity on power exchanges improved and led to substantial drop in prices in Q3FY26. Sell bids in day ahead market of IEX increased 44% on year on year basis.
As a result, the average day ahead market price was rupees 3.22 per unit down 13.2% FIOI while price in the real time market averaged R rupees 3.56 per unit, a 16% YoY drop even on a nine month basis. Cell liquidity in the dayhead market in FY26 has been higher by 43% compared with FY25. The average dam price during this period at 3 rupees 85 paisa per unit has been lower by 14% compared with the same period in FY25. Similarly, the average price at rupees 3.56 per unit in RTM segment over nine months since April has been lower by 16% on an year on year basis.
These prices presented an opportunity for discoms and commercial and industrial consumers to meet their demand at competitive prices and to replace their costlier power Graph Procuring Crude Exchanges on the products front, we continue to await approval from the CRC on our petition to extend the term ahead market contracts to 11 months. With regards to our Green RTM petition, CRC has reserved its order as mentioned previously, to facilitate merchant storage capacity in the country. We have filed a petition with the CRC for introduction of peak day at market and peak real time market shipments. This segment would facilitate trading of power during high demand hours such as late evening and early mornings.
Stakeholder consultation on the same has been completed and the matter awaits further proceedings. Moving on to IGX Performance December 2025 marked five years of operations for the Indian gas exchange. IGX currently represent close to 3% of India’s overall gas consumption and 20% of the spot market. Over the years, IGX has steadily expanded its market footprint, increasing the delivery points available from 4 in FY22 to 23 today, covering both domestic as well as RLNG. The product portfolio at IGX has also grown over the last five years up from six contract types available initially to 10 contract types currently available.
For Q3FY26, IGX traded gas volumes of 17.5 million MMBtu, an increase of 8% over Q3FY25, led by volumes from domestic gas producers, heightened power demand and demand from city gas distribution for the nine months period April to December in FY26, IGX traded gas volume of 58.52 million MMBtu, a growth of 46% on a year. On year basis, IGX recorded a profit after tax of rupees 8.8 crores in Q3FY26 which was higher by 6% compared with 8.3 crore in Q3FY25. For the nine months till December, IGX recorded a profit after tax of rupees 32.5 crores higher by 47.9% compared with rupees 22 crore in the same period in FY25.
As gas price continue their downtrend, the policy initiative remain positive in the sector. Volumes at IGX would continue to be robust even as weather related events soften power demands. This year CA projection of consumption nearing 2,500 bu by 2032 would continue to drive exchange volume in the coming years. To meet this surging demand, nearly 4 to 5 gigawatt of capacity is being added in the country on a monthly basis. The power sector also continues to evolve with the emergence of market mechanisms such as Battery storage Arbitrage firm and dispatchable Renewable energy Virtual Power Purchase Agreement, Electricity Derivatives, Battery Energy storage solutions.
Already 13,200 MWh of BESS project have been awarded under the first tranche and tenders for nearly a third of 30,000 megawatt projects in the second tranche under VGS have also been awarded. The reduction in the battery storage cost has further accelerated by ESS adoption. As recently as November 2025 AP Transco discovered Rupees 1.48 lakh per megawatt per month for 2000 megawatt 2 R2 cycle tender under the VGF mechanism. This is the lowest price discovered for VESS under the VGF mechanism in a big positive start for BSS in the country. Earlier this month we witnessed the first merchant bass trades at IEX from Juniper Green Energy Ltd.
The largest operating BESS asset till date in the country. These developments are set to play a pivotal role in deepening India’s power markets and facilitate the successful energy transition. Our diversification initiatives are also gradually gathering momentum. For Q3FY26 the International Carbon Exchange ICX issued 51 lakh IREX higher by 219% compared with Q3FY24. For the first nine months of FY26 cumulative 133 lakh IRAC were issued surpassing 59 lakh IRAC issued in FY25. Revenue for ICX in Q3FY26 stood at 1.8 crores and rupees 5.45 crore for first nine month period respectively. With regards to coal exchange, Ministry of Coal has appointed Coal Controller Organization as the regulator for for the coal exchange, MOC has also come out with the revised draft rule for exchange and invited public comments which were opened till January 19.
IX has been working with stakeholders to explore setting up first coal exchange in India. As India advances towards its net zero goal, energy exchanges are expected to play an increasingly significant role in shaping the nation’s energy ecosystem. Thank you. And now we can have question and answers.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use 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 Pritam Jain from Avendus. Please go ahead.
Pritam Jain — Analyst
Thank you. This is Ketam from Avendes. Sir, I had a question on the hearing. When would be the expected announcement? Announcement? Date of the verdict. I understand we have to submit our written submissions by 4th Feb. When can we expect verdict date?
Rohit Bajaj — Joint Managing Director
Can’t say. But it should happen within a month time.
Pritam Jain — Analyst
Okay. Okay. Within a month. Okay. So just to follow up on this. So in a scenario where things don’t say things don’t go in favor of us, what is the next possible situation or next possible thing we are planning to do?
Rohit Bajaj — Joint Managing Director
First of all, why are you saying that if things don’t go in our favor, things will definitely go in our favor. In any case, even if they have to go with the coupling, lot of things have to be done yet. I mean if you are following up the hearings, they have to issue that draft regulations, invite comments on that and give statement of reason for that. Why they want to do coupling. Everybody will have opportunity to comment on that. Then they’ll be allowed to issue final regulations procedure to be finalized. I think a lot of work is to be done.
So we will have opportunity to express our issues at each and every stage. And let’s see.
Pritam Jain — Analyst
I didn’t want to understand how long you can get drawn down for. I’ll get back on the computer, sir. Thank you.
operator
Thank you. The next question is from the line of Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore — Analyst
Good evening. My first question is in relation to the volume growth that we saw for electricity volumes on IEX in the month of December when our demand growth improved. Your volume growth was about slightly under 3%. And you know. So I understand you know the merchant as the demand increases on the grid. But how even in Jan, the demand is not as good as December in terms of growth. But so how is this is the slowdown likely to remain? Let us say India’s power demand grows 5, 6% instead of, you know, 0 to 1% like it has been last few months.
How would your power demand growth? How would your volumes be impacted in the electricity?
Rohit Bajaj — Joint Managing Director
See, in calendar year 25, the demand in the country was subdued mainly because of the weather. Reason we had more than above monsoon. So because of the good monsoon, the agricultural load that crashed and also because of the good weather, their conditioning load was also low. So overall the demand did not increase because of that. But otherwise, if you looked at the industrial production, there is definitely there is an increase in that. And since the demand growth was not there, but the availability of power was there, we have enough capacity, we had enough coal to generate power.
The rate in the lower than what it used to be. And because of the low rate, it provided opportunity to the distribution companies for optimizing their power procurement cost. So as a result of that, even though there was no demand increase in the country, we saw reasonably good volume growth. I think it was almost about 14%, 15% kind of volume growth in the first nine months. January month is also going strong with a volume growth of almost about 18 19%.
Sumit Kishore — Analyst
Oh, January is 18, 19%. Okay. Yeah. So I mean is there any correlation that if power demand actually firms up you like December volume growth was 3%. So I’m just wondering whether is there anything to read there?
Rohit Bajaj — Joint Managing Director
You cannot make any correlation on month to month basis. Yes, we have seen that on yearly basis if the demand increases, definitely it leads to increase in the volume. But this year when the demand did not increase, then also there was volume increase because of optimization opportunity because of the low prices. So I think exchange provides both ways. You know, one can purchase power to meet the demand and also when the demand is less, they can optimize the power under the ppa.
Sumit Kishore — Analyst
Yes, very clear. The second question is on the REC volume in the nine month period. You’ve seen that REC volume growth has been in low single digits. So what is, and we are hearing so much on, you know, RPA obligations and everything. So how, I mean, why is the slowdown and you know, what is the outlook?
Rohit Bajaj — Joint Managing Director
The REC volume in the first six months are reasonably good. But subsequently what happened there was one is that the compliance which was to be done by the 30th of September, that timeline has been extended up to 31st of March. So some of the buyers now they have shifted their buying through the month of February. March 2 is. CRC also came out with a discussion paper on REC and wherein they have specified that in CS somebody is not able to meet the RPO ligation, he can deposit amount with the government which equivalent to 1.05% of the average price of REC in the preceding year.
So with this kind of provision, many of thinking that maybe, let us see, maybe can even meet the RPO obligation by just depositing the money with the government. So because of this, the REC purchase is slightly low. But in any case, I think if you buy at the end of the year, we will be able to still do better than what we did last year.
Sumit Kishore — Analyst
This sounds like a very regressive step. Right? And if you are able to deposit money and not.
Rohit Bajaj — Joint Managing Director
Yeah, we have made our submissions with the honorable commission that in case of rec. You know, REC is based on the green generation of green power.
Sumit Kishore — Analyst
Correct.
Rohit Bajaj — Joint Managing Director
So but in case of depositing money it is not promoting the renewable energy. So we should continue with the existing process. We have made our suggestions and let’s.
Sumit Kishore — Analyst
See what is the outcome of that last one question. Typically, if I divide the standalone revenue of the company by the total gross volume, the ratio comes to less than. But this time it is coming at 4.00 paisa. You know, so typically there is some discount that is there which shows up in numbers because the rec, remember the pricing is lower and also you have some discount in tam. But this time it is not showing up. I mean, is there anything I’m missing?
Rohit Bajaj — Joint Managing Director
No. In case of REC, the transaction fees is reduced to 20 rupees.
Sumit Kishore — Analyst
Correct.
Rohit Bajaj — Joint Managing Director
Last, in fact, it was a part of the year. This year, for the full year it is 20 rupees. And even out of that also looking at the market conditions, we have to give discount. We have to give incentives to the buyers and sellers, some amount of incentive. So. But in case of that. Otherwise, in case of electricity, I think it is around 4 paisa.
Sumit Kishore — Analyst
Yes. But if you divide the revenue For December quarter standalone 1:439 million by the volume, the ratio is coming to 4.00 pizza. It is typically less than that.
Rohit Bajaj — Joint Managing Director
Revenue also includes annual fees.
Sumit Kishore — Analyst
Okay. In the past few quarters it was always less than four pairs. So I was wondering if there is something else also this time maybe there.
Rohit Bajaj — Joint Managing Director
Is a variation in the monthly fee. I mean yearly fees and trade volume. Sometimes the related to the revenue recognition it happens. So that also impacts slightly many times the realization then the volume.
Sumit Kishore — Analyst
Okay, Vinit, thank you so much. Thanks.
operator
Thank you. The Next question is from the line of Devesh Agarwal from IISL Capital. Please go ahead.
Devesh Agarwal — Analyst
Yeah. Hi. Thank you for the opportunity, sir. So first question again on the market coupling case. If you could help us understand is the case now boils down to whether the process was followed while the implementation of market coupling rather than the market coupling regulation itself. What are we kind of. Kind of doing in the app till? Is it the process that we are challenging or just the whole regulation?
Rohit Bajaj — Joint Managing Director
What we had challenged in the apptel was that this order should be set aside. Because the order has not followed the due process of order making. The transparency is not was not ensured and there was no merit in implementing market coupling. But during the discussions it also emerged that CRC has mentioned that they will be doing this market coupling only after making the regulations and during the regulation making process everybody will have the opportunity of making the submissions. So the complete transference will be maintained during that process. So this order is basically to initiate the process of regulation making.
So let us see what is the final outcome of this.
Devesh Agarwal — Analyst
There was one round of public comments that were invited on market coupling. So you’re saying for the regulation again CRC is required to do.
Rohit Bajaj — Joint Managing Director
That was on the staff paper that what are the. I mean views on the staff paper. But when you make regulations you issue draft regulations which indicates the intent of the commission and why they want what why that intent is. And on that they invite the comments.
Devesh Agarwal — Analyst
Right. And there was some news article mentioned.
Rohit Bajaj — Joint Managing Director
Invariably in out of commissions dark paper is something discussion paper initiated by the staff of the commission. But draft regulations are by the commission.
Devesh Agarwal — Analyst
Understood. And so in most likely post the app till there is a possibility that CRP will start the process of the market coupling regulation.
Rohit Bajaj — Joint Managing Director
Let us see. I mean I can’t say anything on that.
operator
Thank you. The next question is from the line of Abhir Pandit from Old Bridge Mutual Fund. Please go ahead. Please unmute your line and go ahead. Due to no response we move to the next participant. Pranav Jain from Angels Capital and Finance. Please go ahead.
Pranav Jain — Analyst
Just. I just had a couple of questions. So the first one being in your opening remark you said that electricity from long term PPAs might be routed through the exchanges. If I heard correctly. Can you explain me more on that? How will that work? How will the tariffs work on that? Will it be the same process like Just a little idea on that.
Rohit Bajaj — Joint Managing Director
Okay. Just a minute. Yeah. Yeah. So this was point related to deepening of power market where as per the national electricity policy draft suitable policy and regulatory framework shall be Established for generation capacity addition through mechanisms such as bilateral contract settlements. So they are relating it to contract for difference model where the exchanges are used to dispatch that power. And whatever realization is there from exchange that will be kept by developer. And whatever is the missing money as compared to the strike price which is discussed that is settled outside the market through balance contract, bilateral contract settlement. So that’s the intent of this thing.
And this is similar to what is being done globally across the Europe and other places and India also. This has been discussed for long time. And in fact the VPPA guidelines which has come in the month of December very recently. This is also very similar to it. It is also on the basis of bilateral contract settlement.
Pranav Jain — Analyst
Got you sir. Understood. And so just another question on just to understand. So even if coupling comes in. Damn. But I just want to understand how because now also it’ll take time for it to get implemented in the day ahead market at first. How much longer will it take if that happens for that to happen in the RTM market as well. Because my understanding is it is very complicated. But just want to get your idea on it.
Rohit Bajaj — Joint Managing Director
So first of all for implementing in the dam market itself lot of work is to be done. As I told you that there are going to be draft regulations, public hearing, final regulation process to be finalized and you know, lot of things to be done. So and after that commission is already in the order they have mentioned that they will look at the experience of this and thereafter decide whether they want to go for the RTM or not. Because in case of RTM the complications are more. You have to do it 48 times in a day.
And the timelines available for execution of market is very short. And in case of coupling event whether the timelines available within that, whether the coupling will be possible or not. I think they will study all these things and then decide about that.
Pranav Jain — Analyst
Got it sir. And for this lastly sir, there’s this news article that mentioned that the tariffs like the exchange fees might be cut from 4 pesos to whatever 50.5 on each side. What is your idea on that? Do you see that happening?
Rohit Bajaj — Joint Managing Director
I haven’t heard any such thing. I mean there are many news items so I don’t really pay any much attention to that. As far as the commission is concerned. We haven’t heard anything like that from the commission.
Pranav Jain — Analyst
Thank you. Thank you for answering my questions.
operator
Thank you. The next question is from the line of Abhir Pandit from Old Bridge Mutual fund. Please go ahead.
Abhir Pandit — Analyst
Hi sir. Thank you for the question. Sir, my query is first related to market coupling. Sir, assuming if market coupling happens and the round robin fashion is adapted, is it necessary that the volumes will flow to a particular exchange for a particular period of time? Or will it be open for all the exchanges at that period? How, how will it be?
Rohit Bajaj — Joint Managing Director
It will be open to all the three exchanges on everyday basis, buyers and sellers can submit their bid in any of the exchange. Only thing is, the bids of all three exchanges will be aggregated at one place for the purpose of pricing discovery.
Abhir Pandit — Analyst
Okay, okay. Okay. Okay. So basically price discovery moves to grid India from the exchange which is currently very.
Rohit Bajaj — Joint Managing Director
Price discovery will be done on the round robin basis. Maybe. Okay, for one month, one exchange will do for next month, another exchange will do for next third month, another exchange will do and will keep on rotating between the exchanges on round robin.
Abhir Pandit — Analyst
Okay? Okay. Okay. Okay. Okay. Fine. Sir, my second question is in the terms of new products that was shared at the start of the call, right? I mean, which has come based on the recent government paper. So how do you see iex ability to introduce those products and acceptance or reception of those products by customers and the timeline for these for the launch of these products?
Rohit Bajaj — Joint Managing Director
See, when we file petition with the honorable commission before that we do the market survey, we interact with the customers and based on the requirement of the market, we file petition for introduction of the contracts. And in fact when we do public consultation also in that also we have received good response from the market for introduction of this production which we have filed with the honorable commission. The commission has done the hearing. Let us see, this order is reserved in one or two cases.
Abhir Pandit — Analyst
Okay, so just one final for, for these products, what would be the total market size or time as such? In a sense, how big will it be possible?
Rohit Bajaj — Joint Managing Director
Long duration contract? The market size can be another 15, 20 billion units.
Abhir Pandit — Analyst
15, 20 billion units.
Rohit Bajaj — Joint Managing Director
Okay, and, and green RTM is something, you know, because lot of renewable capacity addition is happening in the country is going to take place in the country now. And renewable capacity has large variations. So on real time basis they will be able to make good those variations to the real time Green market. Today they don’t have any such product. So as the renewable capacity additions increases, the transactions to the green RTML volume will keep on increasing and third product is basically peaking power. Today we have shortage of power for maybe two months, three, two hours.
Three hours in a day between the peak hour time and generation capacities like battery storage or the pump storage or the gas based plants where the cost of generation is slightly higher, maybe they can participate in this market and if in this market the cap price is made slightly more, it will incentivize these kind of capacity additions in the market and help in meeting the demand during the peak time. So that is the intent of the picking power delivery.
Abhir Pandit — Analyst
Okay, perfect. Okay, thank you sir. That’s it for my side.
operator
Thank you. The next question is from the line of S. Ramesh, an individual investor. Please go ahead.
S. Ramesh — Analyst
Thank you and good evening. So in terms of your gas exchange and the carbon exchange, how would the growth in these two markets pan out say in the next one or two years compared to the growth in the power exchange? And how would that impact your growth in revenue and profitability?
Rohit Bajaj — Joint Managing Director
See in case of Power Exchange IEX, it is operating from the last 17 and a half years though, you know, it has attained that kind of a maturity. So growth is going to be in the range of 15 to 20% which we have been achieving over the years. But in case of gas exchange, it’s at the nascent stage and this year in the first nine months, the volume increases almost about 47, 48%. And the trend in the market is that the gas prices are going to be reduced in the next one or two years. And if that happens, there will be a good traction in the market.
And we expect that the gas volumes will definitely continue to grow at a rate of maybe 25, 30% over the next four, five years.
S. Ramesh — Analyst
And what about the carbon exchange?
Rohit Bajaj — Joint Managing Director
Carbon exchange. In fact, you know, earlier we had idea of starting a voluntary carbon market, but the government of India, under the CCPS scheme, they have decided to launch this mandatory and voluntary carbon market under the regulatory framework. So they, they are, they are making the regulations for that and hopefully that market will start sometime in FY26 or 2727 or 28. And as and when that market starts, CRC will be the regulator for that market. So it will be, it’s very difficult to say at this stage what is going to be the opportunity in that when the transactions will stars and looking at the market participation will work out that.
S. Ramesh — Analyst
Yeah. And request for your final couple of thoughts also on the gas exchange, as you see growth, would you also see higher margins in the gas products compared to the power products? And secondly, what is the timeline? How are you progressing on the proposed IPO for the gas exchange?
Rohit Bajaj — Joint Managing Director
See, in case of power or gas exchange, the margins are fixed. So our revenue is based on that volume. We do. And as I told you that in case of gas exchange we expect a significantly higher volume growth of 25, 30% in the coming Years. So I’m sure there the numbers will be much better. And as far as IPO is concerned, basically you know, as per the regulations we have to. Our holding in the gas exchange is 47.5%. We have to bring it down to 25% as per regulations. So we are. We have requested IGX to proceed with the IPO for this.
So they have initiated action. Let’s see. Maybe by we plan to do it in this year. So it all depends on the different activities to be done and the clearances when we get from the sevy. It all depends on that.
S. Ramesh — Analyst
Thank you very much and wish you all the best.
Rohit Bajaj — Joint Managing Director
Thank you.
S. Ramesh — Analyst
Thank you. The next question is from the line of Vijay from Spark Capital. Please go ahead.
Vijay — Analyst
Good afternoon. Am I audible?
Rohit Bajaj — Joint Managing Director
Yes.
Vijay — Analyst
Yeah. So there was this concept of checking whether coupling RPM and SED markets would be feasible. And it’s economically good. Where is that that right now, sir? Or is it like only now regulations on market coupling is the priority. After that damn coupling will happen and only after that all these things on RPM and sed. All these things will happen.
Rohit Bajaj — Joint Managing Director
As far as RPM and SCHED is concerned, I think CRC in their order has already mentioned that this will involve redesigning of a lot of regulations and process and other things. So they will look at this at a later stage. They have not made any mind on that. So at the moment they are talking about is that they had market and based on the experience of day at market they will think about rtm. They will take a view about rtm.
Vijay — Analyst
Okay. And I understand regulation, public hearing, final regulations on market coupling and implementation. The next.
Rohit Bajaj — Joint Managing Director
Yeah, yeah. Your voice. Your voice is breaking.
Vijay — Analyst
Sorry, I was just taking. How long according to you?
Rohit Bajaj — Joint Managing Director
Can’t say. Can’t say. You know it’s a regulatory process. And we really cannot say how much time it will take. Your voice is cracking. Sir. There is some disturbance in the line. I’m not able to hear you.
Vijay — Analyst
Is it better?
Rohit Bajaj — Joint Managing Director
Yes, it is better now.
Vijay — Analyst
No. So I was just.
Rohit Bajaj — Joint Managing Director
No, no, no. I think your audio is not. Can you please work on your audio?
Vijay — Analyst
Hi.
operator
Vijay. Please come back in the question queue. The next question is from the line of Vinay Nadkarni from Hathway Investments. Please go ahead.
Vinay Nadkarni — Analyst
Hi. Just one bookkeeping question. What is the cash and cash equivalent as of 31st of December we have.
Rohit Bajaj — Joint Managing Director
A total cash of around 1500 crores as on 31st of December. And out of that the shareholder fund is around 1200 crores.
Vinay Nadkarni — Analyst
Okay. And secondly just wanted some idea on how this virtual Power project agreements are expected to increase demand flow of.
Rohit Bajaj — Joint Managing Director
See, under the virtual power purchase agreement a buyer will do the agreement with the generating company for. For generation of green electricity. That electricity will be sold on the exchanges and green attribute will be taken by the company which is getting into this ppa. Virtual ppa. So definitely it will increase sell volume on the exchanges. And it will have definitely a positive impact on the volume cleared also. But it all depends on the quantum of virtual PPs which happen in the market interest of the market in getting into this transactions.
Vinay Nadkarni — Analyst
Okay. And secondly, the total and requisition power that is available for connecting on the exchanges that is currently at 7%, isn’t it? Currently at 7%. How much is it?
Rohit Bajaj — Joint Managing Director
Yeah, it is almost about 9 to 10% now.
Vinay Nadkarni — Analyst
Okay. It is increasing.
Rohit Bajaj — Joint Managing Director
Earlier NTPC was participating. Now we find that many other generators are also participating in this market.
Vinay Nadkarni — Analyst
Okay. And lastly from. From your vantage point when I see the the GDP growth at 7475 and you have the II growth also coming up. But the power demand is not catching up. Is there some dichotomy there? What do you see? Why is it happening?
Rohit Bajaj — Joint Managing Director
As I told at the beginning of this conference also that this year we had a very good monsoon, more than above monsoon. And because of good monsoon the agricultural demand had crashed. In fact, even air conditioning load was also very low. As a result of that the demand increase was not there. And but this year if the demand is. I mean if the weather is normal, definitely the demand increase is going to be not less than 5, 6%.
Vinay Nadkarni — Analyst
Okay. So out of this the industrial demand continues to increase. But you’re saying the agriculture and household demand has gone down. Yes.
Rohit Bajaj — Joint Managing Director
Yes.
Vinay Nadkarni — Analyst
Yes. Thank you very much, sir.
operator
Thank you. The next question is from the line of Sumit Kashore from Access Capital. Please go ahead.
Sumit Kishore — Analyst
Thanks for the follow up. One question is, you know will the death scope and. And the liquidity of electricity exchanges constraint on the extent of BPPAs that can be introduced? You know, as they are structured as contracts for defenses. So at the current moment how much BPP can you actually introduce? Given the volumes exchanges handling, I think.
Rohit Bajaj — Joint Managing Director
As of now maybe you can give some figure on that.
Vinay Nadkarni — Analyst
See, your point is related to how much buy is there. Let’s say if we start to execute more and more BPPAs then all this, all this surplus generation will come to market as a sell. So what I understand is you want to ask how much buy is there and how much this cell can be absorbed in the market. Right?
Rohit Bajaj — Joint Managing Director
Correct. Correct. Let’s take the worst case which is solar during the daytime. And BPPA doesn’t mean only solar. It could be hybrid, it could be wind, it could be bss, it could be anything. So even if we take example of solar on an average during the daytime there is 6,7000,8000 megawatt of demand is always there. I’m talking about average. There are extreme days where it is high. There are days where it is low. So if we go by that logic and VPPAs, since they already have a agreement, there are already PPAs there. So they would be price takers, which means they would be putting the lowest price in their base, right? The the price point that they are placing for their cell.
So by that logic, if I collate both by RTM as well as dam, there is liquidity available to the extent of 10,000 megawatt. To that extent there should not be any problem. And today this number stands much, much less than 1000 megawatt. If I talk about how many VPPers are today there and who are coming to exchange, this number is much less than 1000 megawatt. Which means there is a large window available for them to come to this market and that will get absorbed.
Vinay Nadkarni — Analyst
What we also see is that during the data in the cell availability is a lot higher than the buy, you know. So the prices are depressed. If you’re just going to increase the more liquidity on the exchange in terms of seller, it will just crash the price, right? No.
Sumit Kishore — Analyst
See what is happening here is during the daytime because many of these thermal power plants are also back down. They are also participating on exchange. And there is very good quantum of URS power also coming in the market. Now all these power is coming at a price point. None of these thermal generators are quoting less than 2.5 or 3 rupees, right? They are not going below that because that is their variable cost, coal cost. Now let’s say thousand, two thousand, three thousand megawatt of additional VPP will come. It will bring down the price, no doubt about it.
But how much that would be, that is to be seen. So it’s not that it will, it will crash, crash it left, right, center and price would be come down to zero level or less than one rupee level. That will not happen. But yes, if there is more supply then it will bring down the prices. In fact, in the day ahead market it is more of conventional power which is coming. But if you look at our Gdam market, in the Gdam market we have large buy volumes. There is an interest from the buyers. But the quantum available in the GDAP market is comparatively much lower. So when the PPS come, I mean VPPs come, of course they will come in the conventional market. But if green power comes to the market. Yes, that will help us.
Vinay Nadkarni — Analyst
One last data question. In the nine month period, what was IEX market share in REC and the TAM segments?
Rohit Bajaj — Joint Managing Director
So electricity overall we are around 83% in first nine months and REC is about 50%. I do not have exact number for REC available right away, but electricity is 83% for sure. REC about close to 50%.
Vinay Nadkarni — Analyst
So TAM is what 50% dam is.
Rohit Bajaj — Joint Managing Director
It varies between 45 and 50. You have. So TAM is generally below 50, but overall electricity is 83.
Vinay Nadkarni — Analyst
Got it. We can reverse calculate also assume 99% for RTM and dam and REST will.
Rohit Bajaj — Joint Managing Director
Be number will help you arrive.
Sumit Kishore — Analyst
Yes. Thank you so much.
operator
Thank you. We take that as the last question. And now I hand the conference over to the management for the closing comments.
Rohit Bajaj — Joint Managing Director
Thank you. Friends, I would like to thank each one of you for being part of today’s call. Throughout the third 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 to contribute to the development of a sustainable and energy efficient future for India. Have a wonderful evening. Thank you once again.
operator
Thank you very much on behalf of Axis Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.