Indian Energy Exchange Ltd (NSE: IEX) Q4 2025 Earnings Call dated Apr. 25, 2025
Corporate Participants:
Rohit Bajaj — Joint Managing Director
Satyanarayan Goel — Chairman and Managing Director
Vineet Harlalka — Chief Financial Officer and Company Secretary
Analysts:
Rohan Gheewala — Analyst
Rushabh Shah — Analyst
Mohit Kumar — Analyst
Unidentified Participant
Subhadip Mitra — Analyst
Lokesh Manik — Analyst
Devesh Agarwal — Analyst
Dhruv Muchhal — Analyst
Ketan Jain — Analyst
Chirag Maroo — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to India Energy Exchange Limited Q4 FY ’25 Earnings Conference Call, hosted by Axis Capital. 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 star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Rohan Giwala from Axis Capital. Thank you, and over to you, sir.
Rohan Gheewala — Analyst
Thank you, Mala. Good afternoon, ladies and gentlemen. On behalf of Axis Capital, I’m pleased to welcome you all for the IEX Q4 FY ’25 earnings conference call. We have with us the management team of IEX, which is represented by Mr SN, Chairman and Managing Director; Mr Rohit Bajaj, Joint Managing Director; Mr Vineet Haralka, Chief Financial Officer; Mr Amit Kumar, Head of Market Operations, New Product Initiatives and Exchange Technology; and Ms Nagarth, Head, Investor Relations and Corporate Communications. We will begin with the opening remarks from Mr Gohit Pajaj, followed by an interactive Q&A session.
Thank you and over to you, sir.
Rohit Bajaj — Joint Managing Director
Thank you. Am I audible?
Operator
Yes, sir. You are audible.
Rohit Bajaj — Joint Managing Director
Yeah. Good evening, friends. I welcome you all to the IEX earnings call for Q4 FY ’25. With me today on this call are Mr Goyal, CMD IEX; Mr Vineet, CFO and Company Secretary; Mr Amit Kumar, Head of Market Operations and Exchange Technology; Ms Zar, Head of Investor Relations and Corporate Communications; and Mr. Friends, the Indian economy continues to be the world’s fastest-growing major economy with a robust Q3 growth GDP growth of 6.2%. According to the second advanced estimates released by the National Statistics Office, India is expected to-end FY ’25 with a growth rate of 6.5%.
As per the RBI, various high-frequency indicators of economy activity towards sustain sustained growth momentum in Q4. For the new fiscal, the metrological department has forecasted an above-normal monsoon of 105% of the long-term average, potentially boosting the agriculture sector and pushing economic momentum. Even with current uncertainty in global trade, the IMF expects Indian economy to grow at 6.2% in FY ’26 and continue to remain the fastest-growing among the world major economies.
On the power sector front, electricity consumption during Q4 FY ’24 recorded 415 billion units, which is an increase of 3.7% on year-on-year basis. States such as UP, Maharashtra, Gujarat, MP, Kajasthan, Karnataka and Tamil Nadu remain drivers of demand during this quarter. According to data released by CEA for FY ’25, India electricity consumption increased 4.4% year-on-year to 1694 billion units. In preparation of yet another summer of peak power demand, the MOP has initiated policy measures to ensure adequate supply. The directive of imported coal-based generators under Section 11 has been extended till April 30, 2025.
It is likely that MOP may further extend the directive under Section 11 for the remaining crunch period and gas-based plants have been made available to run during this period. To address the trend in rising peak demand, the government has been working to facilitate thermal capacity addition of nearly 80 gigawatts by 2032. The capacity addition of 29 gigawatt is under-construction with 11 gigawatt expected to be commissioned in less than a year. The government has also awarded 19 gigawatt of new coal-based thermal capacity and a further 36 megawatt of capacity is in various stages of planning, clearances and bidding.
In FY ’25, India added a record 34 gigawatt of capacity led by 29.5 gigawatt of renewable energy. India’s total installed renewable capacity now stands at nearly 220 gigawatt. The government’s target is to achieve 500 gigawatt of renewable capacity by 2030. This energy transition would also require efficient integration with the grid. The key enabler in achieving this is the availability of energy storage technologies. With the potential of about 181 gigawatt of storage projects. The government has set a target of adding 35 gigawatt PSP capacity by 2032, of which 6 gigawatt is under-construction.
To develop battery energy storage System BESS, the government has implemented viability gas funding mechanism, which provides up to 30% of the capital cost for various BESS projects. Under this proposed model, BESS-based storage of 9 gigawatt is to be made available by 2027 and eventually scaled to 47 gigawatts by FY ’22. The decreasing cost of BESS globally and in India has been driving its financial viability and adoption. Earlier this month, Karnata Power Transmission Corporation, Corporation KPTCMs discovered a low-price of 2.49 lakhs per megawatt per month for a 500 megawatt two-hour two-cycle tender under the VGF model.
Further, a few days back, in the without VGF category, GVNL discovered a price of 2.8 lakhs per megawatt per month or a 500 megawatt to our two cycle tender. This is much lower than last year’s discovered price of INR3.72 lakhs per megawatt per month for GVNL to 50 megawatt tender. BES would be able to deliver electricity during demand and help efficient integration with the grid. As discussed in our earlier interaction, one of the revenues for charging and discharging of BESS is through power exchanges and this would increase liquidity on the exchanges.
On the fuel side, we remain in a comfortable position. For FY ’25, coal production grew 5% year-on-year basis to 1048 million tonnes, while coal dispatch to the power sector rose to 843 million tons, which is higher by 5.9% year-on-year basis. For FY ’25, imported coal price closed the year at less than $50 per ton, lower by nearly 11% over FY ’24. Imported gas prices for FY ’25 remain near $14 per MMBtu, similar to the price discovered in the previous financial year. Coal price premium under Shakti B8 scheme has also come down between 10% to 20% and coal inventory on 31st March 2025 stood at nearly 23 days. This is highest over a few years. Overall, the fuel situation has remained stable throughout FY ’25.
On the exchange front, sell-side liquidity increased by 23.5% on a year-on-year basis in Q4 FY ’25 and by nearly 36% throughout FY ’25 compared with FY ’24. The average market clearing price in the DAM segment, DM segment during Q4 FY ’25 period was INR4.43 per unit as compared to INR4.88 per unit in Q4 FY ’24. This is decline of 9% on year-on-year basis. During the year, dam prices declined from INR5.25 per unit in FY ’24 to INR4.47 per unit in FY ’25. That is a fall of nearly 15% over the year. The overall short-term market in India remains stable.
According to data from CRC up till December 2024, the short-term market accounted for 15% of the country’s generation in FY ’25, similar to the number in FY ’24. However, within the short-term market, the share of power exchanges has grown to 9% of overall generation from 7% in FY ’24. This is an encouraging trend and points towards the crucial exchanges, crucial role exchanges are playing in the power market.
Let us now talk about the noteworthy regulatory updates and policy initiatives for Q4 and FY ’25 that continued to be conducive of power market development. Under the amendments to the late payment surcharge, LPSC rules, generating stations which have long-term PPA can now offer unrequisition power in the dayhead market, real-time market and other exchange segments.
Recent amendments in the LPSC procedure have also brought state government-owned generating stations under examin, mandating them to offer US power on the exchange platform. As a result of these rules, about 120 million units of URS power from central generating has been available on the exchange platform, out of which on an average, 15 to 20 MUs are getting cleared. Once these rules are extended to private generators as well, there would be further an increase in the liquidity on exchanges. In a draft order earlier this fiscal, the CRC proposed various changes in the design of term ahead market, which will align products across exchanges and help improve liquidity in this segment. The final order on this matter is abated.
In reference to the carbon market, CRC issued draft procedure for trading of carbon credit certificates for both obligated as well as non-obligated entities through power exchanges. Recently, greenhouse emission intensity GEI targets have been notified for 282 obligated entities across sectors. The notifications regarding this has been published by MOE FCC, the Ministry of Environment, Forest and Climate Change for stakeholders comments. This development is expected to pave the way for introduction of trading of carbon trade certificates on IEX in the near-future. As these regulatory measures improved sell-side liquidity on the exchange, helped soften power prices and supported deepening of our markets.
As prices continue to remain competitive, it is expected to present an opportunity for discounts, commercial and industrial consumers to optimize their power procurement costs. In terms of business performance, IEX traded 31.7 billion units of electricity volume during Q4 FY ’25. The highest-ever electricity volume traded on a quarterly basis, reporting a growth of 18% on year-on-year basis. For FY ’25, IEX traded electricity volume of 121 billion units, a growth of 18.7% over FY ’24. In Q4, a total of 68 lakh renewable energy certificates were traded, the highest-ever in-quarter, recording a growth of 108% over the same quarter last fiscal. The highest recorded REC of nearly 178 lakhs were released for FY ’25, up by 136% over FY ’24.
The RTM segment continued to demonstrate strong growth. For Q4 FY ’25, RTM volumes at nearly 9.7 billion units were higher by 29% on year-on-year basis, highlighting the segment’s critical role in helping discoms and open access consumers efficiently manage short-term needs. For FY ’25, nearly 39 billion units were trading in this segment, a growth of 29% year-over-year. RTM’s ability to offer facility and immediate responsiveness underlines the opportunity to efficiently integrate renewables with the grid. The grain market volume in Q4 FY ’25 rose 100% to 1.9 billion units compared with Q4 FY ’24. For FY ’25, the segment achieved volume of 8.7 billion units, an increase of 171% on year-on-year basis. The segment advances integration of clean sources such as solar and wind into the grid and helps obligated entities, including meet their renewable purchase obligations.
With regard other business developments, we continue to await approval from CRC on our petition to extend the term ahead market contract from 90 days to 11 months. The trader market, which is presently around 40 BUs is the total addressable market for these contracts going-forward. 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 hosted on CRC website have been closed. Green RTM would provide an opportunity for RE sellers to avail price premium over conventional power and allow buyers to avail green attributes of electricity for fulfillment of their renewable purchase obligations. This segment shall also help reduce deviation exposure due to weather events by providing an avenue to trade green energy power in one-hour advance.
In September 2024, our wholly-owned subsidiary International Carbon Exchange, ICX, became aggregated as India’s first international renewable energy certificate issuer. Over the last seven months, a total of 59 lakh IRECs were issued by ICX. Is globally recognized digital certificate that serves as a transferable proof of generation of 1 megawatt of 1 megawatt-hour of energy from renewable sources. This fiscal also witnessed positive moment on setting up India’s first coal exchange other supervision of the coal controller organization. IEX has been working with stakeholders to explose this diversification option. The discussion paper on the proposed coal trade exchange has was loaded earlier in March this year.
Public comments on the proposed drafts are still open. The draft proposes amendments in the Mine and Mineral Development Regulation Act, MMDRA to facilitate sale of surplus coal through coal exchange. It also proposes that exchange would facilitate sale of coal from commercial and captive mines. Earlier in August 2024, draft guidelines for authorization and functioning of extended producer responsibility, EPR trading and settlement platform for plastic packaging were issued by Central Polish Control Board, CPCB. This will help in the transparent and competitive price discovery for EPR certificates through online platform. EPR certification ensures proper recycling, reuse end-of-life disposal of waste generated from electronic and plastic products. We have filed an expression of interest with CPCB for developing the EPR trading platform. IGX, moving on to IGX, IGX traded highest-ever gas volume of 60 million MMBtu in FY ’25, a growth of 47% over FY ’24.
For Q4 FY ’25, IGX recorded a profit-after-tax of INR8.9 crores, which was higher by nearly 103% compared with INR4.4 crore in Q4 FY ’24. The profit-after-tax for IGX in FY ’25 increased 34.3% to INR30.9 crores from INR23 crores in FY ’24. As gas prices continue their downtrend, volume at IGX would pick-up going-forward. Financial and business update. Let me summarize with the financial performance of the company in this quarter and financial year. On a consolidated basis, revenue for Q4 FY ’25 was higher by 17% at INR174.6 crores. For FY ’25, consolidated revenue stood at INR657.4 crore, an increase of 19.3% on year-on-year basis.
Consolidated PAT during the quarter came in at INR117.1 crores, higher by 21.1% on a year-on-year basis from Indian 96.7 crores in Q4 FY ’24. For FY ’25, consolidated PAT was recorded at INR429.2, higher by 22.3% over the previous financial year. Also, the Board of Directors of the company announced a final dividend of INR1.5, equivalent to 150% of the face value of equity share. According to the IMD, India is expected to experience hotter than usual temperature from April to June this year, estimates are that peak demand — peak power demand may cross the 270 gigawatt mark this summer compared with the last summer peak demand of 250 gigawatt.
With the CEA forecast of peak power demand of 458 gigawatts by 2032, power consumption growth will continue to drive exchange volume growth. After 15 gigawatt of thermal capacity expected this fiscal, there has been a shortfall of nearly 11 gigawatt due to delays in project commissioning. This shortfall is expected to be available in the new fiscal along with the renewable capacity. In addition, policy measures undertaken by the government regulators to ease supply-side liquidity is expected to further rationalize power prices on the exchanges.
We concluded FY ’25 with almost 19% growth in the electricity volume and remain optimistic about what lies ahead to be able to grow further in the coming year. Power sector is undergoing changes with the development of new market model in the form of battery storage, arbitrage, firm and dispatchable renewable energy, MDRE, the virtual power purchase Agreements, VPPAs. These market models are slated to 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 much larger role of power exchanges in the country’s energy landscape.
Thank you. And now we can have question-answers.
Questions and Answers:
Operator
Thank 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 touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles.
We have our first question from the line of Shah from Bajal Rock PMS. Please go-ahead.
Rushabh Shah
Hi, thanks for the opportunity. I had three questions. Sir, in the previous call, you mentioned that there are many steel plants and cement industries and aluminum industries who have large captive generation capacities with them. So they are also required to purchase the RECs. So how big this could be — how big would this market be in the next four to five years? And what is your vision related to this market?
Satyanarayan Goel
RAC compliance by the industries who have captive generation is a requirement, but unfortunately enforcement of that is not happening at the moment and these industries also have taken-up with the government that there should be some relaxation for them because otherwise it will increase the cost of production. So I think this issue has not been resolved. As of now, as per the prevailing notifications, they have to comply with the RPO compliance requirement. And if that is implemented, the opportunity is very large. I mean, we have not calculated that, but we — we have estimated that the existing — it will not be able to — existing RECs will not be able to meet that requirement. Today we have inventory of about INR4 crore RECs. So even the requirement is much more than that.
Rushabh Shah
But there is no update on the notification side.
Satyanarayan Goel
There is a notification but then compliance with no penalty and was a notification so as of now enforcement of the notification, particularly for the industries that is not being ensured.
Rushabh Shah
As a technology platform that buyers and sellers need, what calendars do you, what challenges do you face in business like
Satyanarayan Goel
On IH platform, we don’t face any challenges as far as the technology is concerned as far as the platform is concerned. And the challenges are basically the availability of power during the peak hours or the demand of the states, I mean, if the demand-supply — normal demand-supply is a issue on which we are working and to get more.
Rushabh Shah
I think I’m asking more on a business perspective, not as a technology and its platform.
Satyanarayan Goel
Your question is not clear.
Rushabh Shah
Asking on the business perspective, not on the technology side of the platform.
Satyanarayan Goel
And challenges on the business?
Rushabh Shah
Yes.
Satyanarayan Goel
One of the challenge for the business is basically availability of power, surplus power in the market because only when the ample supply of power is there, then only the rates on the exchange platform will be regional and then also there should be demand growth in the country. So as far as demand growth is concerned, we are continuously seeing that, yes, demand is growing. India is a developing economy. So demand growth rates continue to be there for the next couple of decades.
But as far as supply of power is concerned, yes, in-between we face few challenges, particularly the peak summer months, month of April and May. Otherwise, there is adequate supply of power also and government has made necessary arrangements to ensure to meet the peak demand also. So I don’t see much challenges in that. Participants distribution companies on the exchange platform and because their reliance is mostly on the power purchase agreements. So in fact, 85% of their demand they need through the power purchase agreement.
So that is definitely one big challenge and how to bring them on the exchange platform. And in future also, how to ensure that distribution companies don’t get to the PPA, they buy more power from the market. I think this is something on which we are regularly working and doing the policy adverse is the government.
Rushabh Shah
My last question is, sorry to harp on this topic of coupling. So even if coupling were to happen, so why would there be — so why would there be customer loyalty towards IEX like customers trading on our exchange?
Satyanarayan Goel
It is because of the kind of services which we provide and the robust technology platform which we provided which we — on which they had no problem in last 17 years and the financial settlement, everything we have do on-time. And in addition to that, we also provide a lot of data analytics to them. So I think because of all that only the customers are staying with us. Even today also the customers are staying because of that only. And in future also, I’m sure we will be able to retain a large part of the customer-base.
Rushabh Shah
Fine, sir. Thank you. Thank you so much.
Satyanarayan Goel
Thank you.
Operator
Thank you. We have our next question from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Yes, sir. Good afternoon and congratulations on a very good set of numbers. Sir, my first question is, how much is the volume in long-duration contract for FY ’25 versus FY ’24? It seems that the TAM volume overall hasn’t picked-up in this fiscal year. Is it a loss of market-share or decline in the market overall?
Satyanarayan Goel
No. The DAM volumes have increased.
Mohit Kumar
TAM.
Satyanarayan Goel
TAM volume, yes, there is an increase in the TAM volume. TAM volume on platform were about 10 billion units. Year before that it was also it was about 10 billion units so almost the same number.
Mohit Kumar
So given what we
Satyanarayan Goel
So what has happened this year is earlier we were when we were talking about TAM volume, it was combination of conventional as well as green. So this time what has happened, the liquidity in the green dayhead market has increased considerably. So all the transaction in the green TAM, which was happening last year has actually moved to the day head market. So now the volume that we are seeing in TAM is only conventional. So in absolute terms, we are not seeing growth. But if you see since the green part has moved to the day head market, in real terms, there is some growth there.
And another reason here is the growth is the one reason why so much growth is not there because after two, three years, we have seen such a good growth in our day-ahead numbers. Now the availability was much better this year and whenever you have good availability and the prices were also lower, there were prices down by 15%. So our day market as dayhead and RTA market has increased from 86 billion unit last year to 109 billion units this year. So this — since there was tremendous growth in this segment, so TAM, you can say was little compromised. And again, it is because of the macro factors, which is availability and less prices.
Mohit Kumar
Secondly, on the informity of contracts in TAM. I think you mentioned that some order is out, right? I think the CRC has asked to — as action was given in the October months, right, on informity of contracts. Where are we right now and when do you think this will likely to be implemented?
Satyanarayan Goel
No, they had issued a draft order to ensure some standardization in the contracts and they had invited the comments on that, comments were given to CRC. I think we are expecting final order on that any day.
Mohit Kumar
Understood. My last question, is it possible to help us in the status of market company? Has there been any update for CRC with the regulator?
Satyanarayan Goel
No update on that.
Mohit Kumar
Understood. Sir. One more last question if I misque. What is the revenues EBITDA PAT of IGX for FY ’27? Sorry, FY ’25, sorry.
Satyanarayan Goel
IGX?
Mohit Kumar
Yes, yes.
Satyanarayan Goel
Gas exchange.
Mohit Kumar
Gas in gas exchange.
Satyanarayan Goel
Gas exchange PAT is INR31 crores.
Mohit Kumar
And the revenues and revenues for the — for the year fiscal year.
Satyanarayan Goel
55 crores.
Mohit Kumar
Understood, sir. Thank you. Thanks. All the best.
Satyanarayan Goel
Thank you.
Operator
Thank you. We have our next question from the line of Sahil Choudhary from Securities. Please go-ahead.
Unidentified Participant
Am I audible?
Operator
Yeah, can you speak?
Unidentified Participant
Yeah, yeah so I was seeing our — I was seeing our Nine-Month number. So there is a discrepancy in our investor presentation and in our press release. So in our investor presentation, it says that in nine months, we traded 100 billion units of volume and in our press release it says that we traded around 88 billion units. So what is the discancy there?
Satyanarayan Goel
I think nine months was electricity plus certificate and subsequently we have started reporting electricity separately and certificate separately.
Unidentified Participant
12 billion units of certificates 12 billion units.
Satyanarayan Goel
Yes we have sold this year in the full-year almost one point here is 18 billion certificates so in nine months, almost 12 billion units of certificates were sold.
Unidentified Participant
Okay, sir. Thank you so much.
Operator
Thank you. We have our next question from the line of Mitra from Nuvama Wealth. Please go-ahead.
Subhadip Mitra
Good afternoon and thank you for the opportunity. My first question is with regard to what you earlier mentioned that I think this year has been particularly productive because of better supply and hence lower prices and hence we are seeing higher DAM and spot market-related volumes vis-a-vis TAM, which is, let’s say, more or less stagnant.
Now going ahead, if the general view is over the next two to three years, the demand-supply gap will widen and possibly we will see a higher shift of volumes from DAM towards the longer-term TAM market. Two questions over there. Firstly, in TAM, what I understand is a market-share somewhere around 36% odd vis-a-vis almost 100% market-share that you have in DAM. So could that be a longer-term risk?
Secondly, you know, in terms of moving towards, let’s say, longer-term contracts, let’s say, towards a six-month contract, et-cetera in TAM as and when you get the approval. Can that have any working capital-related risks for you?
Satyanarayan Goel
And the first question is that large gap between the demand and supply and volumes into the market instead of the dam. I think as far as demand-supply is concerned, government of India is working on ensuring adequate supply of power and this year particularly almost about 10 gigawatt of coal-based capacity is going to be commissioned, say, because last year, they had planned almost about 14 gigawatt out of which 5 gigawatts commissioned. So 9 gigawatt is basically spillover of last year, which is in very, very advanced-stage of committing and that is going to be commissioned. In addition to this 40 gigawatt of renewable and 5 gigawatt of battery storage is going to be commissioned.
So I’m sure with this new additional capacity, there is not going to be any shortage of power and that basic assumption that there is going to be shortage and demand is going to shift from DAM to RTM and then to TAM, I don’t think that is going to happen. And in any case, there are shortages also which you see invariably, this happens only for two months, which is the month of April and May. But from June, the monsoon starts and the wind and the wind generation starts. So thereafter that price — the spread is not that critical. So I don’t think that there is going to be any impact on the business as far as the demand and supply is concerned.
Subhadip Mitra
Understood. Okay. And sir, on the second one that.
Satyanarayan Goel
And on the second month, CRC is yet to approve our 11-month contract and when the contract is approved, I’m sure the margin should take care of all that kind of risk which are — which you are expecting. And we have a proper margining system and we have thereafter daily payment system. It is working very effectively in the three months contract and I’m sure even with six-month contract also, also that should be affective.
Subhadip Mitra
So in these longer-term contracts, the margins will not be limited to the four pesa that we have in that you might have better margins.
Satyanarayan Goel
So margins will be only four per unit only, only, two better from to better from.
Subhadip Mitra
Okay, even in the longer-term contracts, absolutely.
Satyanarayan Goel
Yes, yes.
Subhadip Mitra
Okay, understood. Sir, secondly, just wanted to get your view on this that what we hear is that the security constrained economic dispatch, SCED, which is currently active for central government-owned plants might be extended towards state government plants, etc, through the grid in the platform. Does that have any ramifications for IEX in terms of volumes.
Satyanarayan Goel
So let me first explain this is that SCED is applicable only for the power plants which are scheduled by Grid India. Okay. And Grid India is scheduing only central government generic stations and interstate IPP stations. Intrastate sched is applicable for the state generating stations and IPPs who are supplying power to the state where they are located. And that will be done by the SLDC of that particular state. So intrastate SED will be done by the SLDC of that state. So this will not have any — I mean it’s SED by NLDC and interested SCD will not have any conflict.
Subhadip Mitra
So it doesn’t impact yeah.
Rohit Bajaj
So just one more point here. FCED is done when all the available markets are closed. So today, when at national level, when Grid India is running SED, it is after the schedules of real-time markets are available, which means the entire thing has been done. So after you have done, you have participated in the market, your schedules are there, you have taken full advantage of the market in terms of meeting your demand or in terms of optimization, then this window operates. So if it is going to be there at a state-level, this is going to be win-win. It is going to be positive for the sector and it will not have any negative impact on the markets?
Subhadip Mitra
Understood. Understood. Thank you on that one. And lastly, the financial derivatives also which are now planned to be introduced on the MCS platform. How does this impact, if at all IES volumes.
Satyanarayan Goel
And I think the direct impact of the financial derivatives will be that there will be some stability in the price. It will provide some visibility in the price to the generator so that they can make arrangements for the fuel and also some visibility of price for the long-duration contractors?
Subhadip Mitra
Understood. So again, I would that in any manner actually help your volumes because at some point in time, even though derivatives need to have a delivered volume, right? So does it help IES volumes in any manner?
Satyanarayan Goel
I think let the derivatives start and then we will see how to leverage that for increasing.
Subhadip Mitra
Understood, sir. That’s it from my side. Thank you so much.
Satyanarayan Goel
Thank you.
Operator
Thank you. We have our next question from the line of Lukesh Manik from Capital Advisors. Please go-ahead.
Lokesh Manik
Yeah, hi, good afternoon to the team. Am I audible? Can you please? Yes, sure. My question, sir was on the green market. A part of the volume is being driven by new installations. New installations this year was about 80 gigawatts. Next year is expected to be 30-40. So do you see an impact of that on the growth of green market going-forward from 8 BU to, let’s say, even if you were to take 20% growth, would it have an impact on growth, the installations coming down?
Satyanarayan Goel
This year, the renewable sector, the capacity addition was about 24 gigawatt. Next year, we are expecting about 40 gigawatt of renewable capacity addition. So it is going to increase. So linear the green market is further going to increase.
Lokesh Manik
And sir, what percentage of this is coming to the market? I mean 80% is long-term PPA or 90% is long-term PPA.
Satyanarayan Goel
And that depends from case-to-case. But in any case what we have seen is, what we have seen is that even the states who are buying green power and whenever they are — they are surplus beyond the RPA obligation, they also sell the green power in the market. So even if they have the PPA, there are many states who sell green power. So what is more important for is the capacity addition in the country. So if capacity addition happens, then we will directly or indirectly get benefit of that.
Lokesh Manik
Understood. And sir, do you see now that green power is traded on-exchange and RPO obligations can be done from there. When do you see a slowdown in REC certificates as such because there is a limited capacity that has come up with that route of capacity addition.
Satyanarayan Goel
See, if you look at the RPO compliance number they are in fact much higher than that renewable power available in the country so I don’t see any less requirement and any adverse impact from the REC market. And the RPO compliance numbers are much higher. So there will be enough scope for the REC market also and also increase in the green market.
Lokesh Manik
Fair enough. That’s it from my side, sir. Thank you so much.
Satyanarayan Goel
Thank you.
Operator
Thank you. We have our next question from the line of Agarwal from IIFL Capital. Please go-ahead.
Devesh Agarwal
Good afternoon, sir, and thank you for the opportunity. First question, sir, on power derivatives itself. We have a tie-up with MCX in terms of revenue-sharing. What we also read in the news, there are other exchanges are looking at this project. So is this an exclusive contract that we have with MCL, so we can also enter into enter into with other exchanges? That is one. And do we ourselves are looking at the power derivatives market.
Satyanarayan Goel
We don’t have any exclusive contract with MCX, number-one. Number two, as IX, we are regulated by CRC and derivatives are going to be regulated by MC — by SEBI. So if we want to get into derivative business, then we will have to incorporate another company under the jurisdiction of SEBI. And single-product derivative doesn’t make any sense. So we — that is why we do not want to get into this. As of now, we don’t want to get into this.
Devesh Agarwal
So that means we can also get —
Satyanarayan Goel
In future, if we see a large opportunity, maybe we can explore that also.
Devesh Agarwal
Understood. So does that mean we can also get into a contact with NFC if they are looking to get into the power derivative market for price?
Satyanarayan Goel
Yeah, as I told you that we don’t have any exclusive contract. So that means we can get into any number of parties.
Devesh Agarwal
Understood. Secondly, sir, can you share segment-wise, what would be our market-share in FY ’25?
Satyanarayan Goel
So our market-share in that collective transaction is 99.8% and in the other segment, which is a bilateral DSE plus TAM plus GTAM, the percentage is about 35%.
Devesh Agarwal
And sir, REC
Satyanarayan Goel
Market-share is 60%, 58.8%.
Devesh Agarwal
So you did mention that the inventory is around INR4 crores. So do you think that the scope for growth in volume is limited from here on? How you see there is a risk of issued?
Satyanarayan Goel
Every year, the RSEs are being issued.
Devesh Agarwal
So even on this INR1.8 crore number, are we expecting, say, 10% growth in FY ’26?
Satyanarayan Goel
Yes, yes, definitely. Definitely, we are expecting at least this year to trade about 20 billion units of.
Devesh Agarwal
Okay. And sir, in terms of this new opportunities that you did mention, FDRE, virtual PPAs, BSES. By when will we see actual volumes coming onto the exchange platform from this new opportunities?
Satyanarayan Goel
The things have started — if you see our green market volumes, they are very slightly increasing now. Now that increase is mostly coming from these things because virtual PPS also we find that in one or two cases, they have started operating — they have started operating and we are getting volume from them. Maybe Rohit can give you more details about that.
Rohit Bajaj
So we are close to 1,500 megawatt of capacity under VPPA is already with us, registered with us and they are selling this power in the conventional market because when you bring VPPA power in exchange, then it is not seen as a green power, it is a conventional power. And you can see these trends because when we compare our supply available during the solar hour this year versus previous year, you will find there is increase of 10,000, 15,000 megawatt of supply during the solar hours.
So VPPA has contributed that and this power is available and if this power is bidded at a very cheap prices and this is one reason why the solar prices have come down in this particular year. Similarly, when FDRE power will come, which has not yet started, but it is again in the various stages of execution. When that power will come, it will be coming out-of-the green market itself. So VPP already started. Other segments we are waiting to start and this is not very far. We are expecting it to come in next one to two years.
Devesh Agarwal
Understood, sir. Thank you so much and all the best.
Satyanarayan Goel
Thank you.
Operator
Thank you. We have our next question from the line of Dhru Muchal from HDFC AMC. Please go-ahead.
Dhruv Muchhal
Yes, sir. Thank you so much. Sir, in the opening remarks, you mentioned about the URS power, the potential and the actual volume traded. I missed that, if you can please repeat.
Satyanarayan Goel
Yeah, every day we get almost about 100 million units of sale, but the volume cleared out of that is on an average about, 15 million 16 million units.
Dhruv Muchhal
So this comes in the RTA market or the DAM market?
Satyanarayan Goel
It comes both in DAM market and RTM market.
Dhruv Muchhal
Okay. And the — so as the demand increases, the potential to clear this URS volumes also increases, right? I mean, I’m just wondering why does the volume not clear? This is because the lack of.
Satyanarayan Goel
Yes, yes, yes. Correct.
Dhruv Muchhal
Got it. Perfect, sir. Thank you so much. That’s all. Thanks.
Operator
Thank you. We have our next question from the line of Ketan Jain from Avendus Spark. Please go-ahead.
Ketan Jain
Thank you. Good afternoon, sir. Sir, my first question was on long-duration contracts. In FY ’24, we did a total TAM volume of around 15 billion units. And you had mentioned that around 10 billion units was from — coming from long-duration contracts up to three months. Can it be the same number for FY ’25 out of 11.1 billion units, which we traded in TAM? How much was a long-duration contract?
Rohit Bajaj
So number is same. We did this year also we did about 10.5 billion units under the TAM contract, which is long-duration contracts. So last year and this year numbers are 6%.
Ketan Jain
But this year total TAM was only around 11.7 billion, right, sir?
Rohit Bajaj
Yeah. So what has happened here is the DAC segment, which was doing very well until last-time, which did about 5 billion unit trade has reduced to 2 billion units. So not much is happening on the DAC side. And you must-have seen the report where we have mentioned these two bilateral segments in one category. So last-time it was 10.7 plus 5%. This time it is 10.2 plus 2. So there is reduction in DSE contract SAM number is more or less same and reason I just explained, the green TAM has moved to green. So there is some increase in the TAM contracts, but overall number remains same.
Ketan Jain
Understood. Understood. And sir, what would be the forecast for FY ’26 and for TAM, long-duration?
Rohit Bajaj
Yeah. So again, it is dependent on the fact if we are expecting approval for 11 months contract, is that — if we get that in next two, three months, then there is additional 40 billion unit annual potential which is there, addressable market which is there because that sort of transactions are happening through deep platform, which is being done by traders. So we hope that some part of that, decent part of that we should be able to convert in the first year future. And next two, three, four years’ time, we should be able to convert major part of that. So we are expecting good growth. But again, there are sectors like availability of power, power prices and other things, which also decides how much distribution company rely on TAM contract and how much on DAM?
Ketan Jain
Understood. Sir, just one question on the working capital for long-duration contracts, which is for up to three months, how much of margin do we have — and do we have any receivable risk in these type of contracts?
Satyanarayan Goel
So what we do here in case of whether it is DAM, RTM or DAM, our settlement is done on a daily basis. So every day, whatever we are supplying, we are collecting from the seller and making this payment to the buyer. Opposite — sorry. We are collecting from the buyer and making this to the seller. Now to ensure that there is enough margin availability in the system, we also rely on-bank guarantees and other PMS. So till now for three-month contract, there was not even a single case where we have faced any challenge in terms of getting those margins.
And hopefully, we are hopeful that when this contract would be launched up to 11 months, the same problem would not be there as well. And why that problem is not there because buyers are finding this market very, very competitive. If they compare our prices vis-a-vis prices discovered in the D platform, these are 15% 20%, 30% lower. To take advantage of such a low-price, they don’t mind giving those additional margins, which we are willing to take-in the form of PMS also. So we are really not seeing any challenge on that front.
Ketan Jain
Okay. So even in a three-month contract, we get the payment daily for how much power was traded.
Satyanarayan Goel
Absolutely. For all the contracts, it is — the system is, daily.
Ketan Jain
Understood. Sir, my last question is on the Grid India’s report where the Grid India had published a short-term adequacy report where they forecast major shortages in May and June. Given good capacity addition forecast for FY ’26 in the near-term, how do you see this to be impacted — impacting our volumes if there are major shortages in May and June. How do you see it impacting our volumes? And what’s your outlook on FY ’26 volume growth?
Satyanarayan Goel
I think the outlook for April was also similar, April, May, June, but fortunately in the month of April, so-far the volume growth is about 28% on the excess platform. So we don’t expect a big challenge in the month of May and June also.
Ketan Jain
So — because I think because of demand being weak or supply being good, sir.
Satyanarayan Goel
Because of supply being good and we also expect that in the month of May-June also with the kind of regimens which have been made by the government, there will be adequate supply.
Ketan Jain
Okay. So the demand is going to be good, but because of excess supply, the prices will be low.
Satyanarayan Goel
Yes, and there could be some impact on the price, but
Ketan Jain
But relatively supply better supply would be better.
Satyanarayan Goel
Yes.
Ketan Jain
Understood. Thank you.
Operator
Thank you. We have our next question from the line of Raghav Bhuthariya from LNC Securities. Please go-ahead.
Unidentified Participant
Hello, sir, am I audible?
Operator
Yes.
Unidentified Participant
Sir, we have seen a nice growth in volumes in AGX if you compare 4th-quarter of last year to this year. So what is the reason for that?
Rohit Bajaj
And you’re saying between last year and this year, there is about 18% growth in our electricity volume, which is similar to what we have seen in the market.
Unidentified Participant
IG exchange. Okay. Sorry.
Satyanarayan Goel
Yeah, IGX volume increase is mainly because we have a — this Reliance and ONGC have started production of the domestic gas and they are selling good part of that for the market also.
Unidentified Participant
To ramp-up its volume. So we should expect it to keep on improving from here.
Satyanarayan Goel
Yes, in case of ONGC, we expect the volumes to increase further. ONGC is as of date reducing almost about 2 mcmd per day whereas the target for this year is about 5.5. So it’s more than double. So we expect good volume from them this year, further increase this year.
Unidentified Participant
And also —
Operator
Sorry to interrupt, Mr Agar, we are unable to hear you voice is quite breaking.
Unidentified Participant
Is this better?
Operator
Yeah, yeah.
Unidentified Participant
Okay. So update on the foreigns? No, do we expect
Operator
Mr, we are unable to hear you. May please request you to rejoin the queue?
Unidentified Participant
Sure.
Operator
Yeah. Thank you. We have our next question from the line of from Keynote Capital. Please go-ahead.
Chirag Maroo
Yes, thank you for the opportunity. Most of my questions are answered, but I have a couple of bookkeeping questions. Sir, I wanted to understand what is your — what is the part of trading margin deposit as a part of financial liabilities and out of INR900 crores, what is payables and what is trading margin deposit?
Satyanarayan Goel
And I will request Mr Vinet, our CFO to respond to this question.
Vineet Harlalka
So if you look at the financial results, the financials are there. And if you look at the overall the settlement financial assets and liability, so as on the 31st of March, the total financials which are receivable obligation, the pain amount receivable is around INR220 crores and the total amount which is payable is around INR967 crores.
Chirag Maroo
Just wanted to understand from the perspective of business, why do we have such high payables because overall our sales — sales are almost INR535 crores.
Vineet Harlalka
There was during holidays in the 31st March and two, three days. So that’s why the settlement become outstanding. That’s why this amount increased significantly during this year year’s one.
Chirag Maroo
Okay. So this is a one-time effect and now our books will again come back to normalized levels and —
Vineet Harlalka
For not working as well.
Chirag Maroo
Okay. And if I just remove the settlement trading margin deposits and the payables, we would have around approximate INR1,000 crores worth of cash-in each of us. Is that correct?
Vineet Harlalka
Yes.
Chirag Maroo
Sir, just wanted to understand if are we looking at some kind of an acquisition at this moment? I just wanted to understand what is the reason for — for us being the largest player in the industry having such high cash available on the books?
Satyanarayan Goel
We are looking for some diversification opportunity and as and when something, we’ll come back to you.
Chirag Maroo
Okay. And sir, secondly, I wanted to understand in the — in the last conference call, I had a question related to dividend payout. Did the Board got a chance to talk about the slab-based dividend policy or are we going to keep continuing 65 percentage dividend policy going-forward too?
Satyanarayan Goel
See, we distribute more than 50% of the profit in the form of dividend and we have been distributing about 60% 65%, 70% kind of profit. So this year also we have distributed 65% of that profit in the form of dividend. And dividend this year has been INR3 per share. Last year it was INR2.5 per share.
Chirag Maroo
Yes, I continue to the point. So I just wanted to understand, did the management got a chance to change — had a talk about the change in dividend policy from this 60% 65 percentage to a slab base because I don’t — I just wanted to understand even if you are looking for an acquisition, INR1,000 crores worth of assets, are we looking at that kind of size of acquisition if to diversify?
Satyanarayan Goel
Look, we have been considering and trying to — if you look at over the last five years, our payout has been consistently increasing and definitely Board will see if they see there is no good opportunity coming, definitely the Board will consider to look out for the staggering payment or the higher payment of dividend.
Chirag Maroo
Perfect. Thank you. Thank you so much, sir. Sir, my last question is on the new exchange that you’re talking about the coal — the coal exchange. In electricity, I understand the product is same, but in case of coal, the product will be different. So I just wanted to understand, are there initial thoughts about how we are going to make sure that the quality of product which is created is going to be of the quality which the receivable going to receive. So just wanted to understand the question.
Satyanarayan Goel
Number-one, on the coal exchange, it is work-in progress. First of all, Government of India itself will have to do amendment in the Act and thereafter they will have to issue the regulations and then we will apply for it. Second is, as far as these kind of problems are concerned, because coal is not a homogenous commodity. So there are many challenges, not only the quality, quantity, transportations, these are challenges there in that. And we will do the product designing in such a manner that there is no-risk on the exchange. So because the exchange is a technology platform, we cannot take this kind of risk. So maybe the buyers will have to take the delivery from the which is going to be the hub and based on the third-party country.
Chirag Maroo
Fair enough, fair enough. Sir, one of the earlier participant asked about the market-share for FY ’25. Will it be possible for you to give the market-share detail segment-wise based on FY ’24?
Satyanarayan Goel
Yeah. Our market-share in electricity is about 84.2%. In the IDEM — in the collective transaction, which is IDEM and RTM, it is 99.8% and in case of the transactions, it is about 35%.
Chirag Maroo
Okay, okay. Fair enough. Fair enough. Thank you. Thank you so much, sir.
Satyanarayan Goel
Thank you.
Operator
Thank you. Ladies and gentlemen, that would be the last question for today. And I now hand the conference over to the management for closing comments.
Rohit Bajaj
Thank you. Thank you. Thank you, friends. I would like to thank each one of you for being part of today’s call. Throughout this fiscal, 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 of India. Have a wonderful evening. Thank you once again.
Operator
Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.