INDIAN ENERGY EXCHANGE (IEX) Q2 CONCALL: TARGETS 15% FY27 ELECTRICITY VOLUME GROWTH, 40–50% IGX VOLUME GROWTH & 20–25% ICX REVENUE GROWTH; MARKET COUPLING MAY TAKE 1.5–2 YEARS, IGX IPO ON TRACK & BUYBACK UNDER CONSIDERATION

• FY27 Electricity Volume Guidance: Management expects IEX electricity trading volumes to grow approximately 15% during FY27, supported by rising power demand and increasing exchange participation. • IGX Volume Growth Guidance: Management expects Indian Gas Exchange to achieve approximately 40–50% YoY volume growth during FY27, following strong growth in H1. • ICX Revenue Growth Guidance: Management expects Indian Carbon Exchange's I-REC registry business revenue to grow approximately 20–25%. • H2 Electricity Trading Outlook: Management expects improved power availability and moderation in electricity prices to support trading volumes in the Day-Ahead and Real-Time markets. • Long-Term Power Trading Outlook: Management expects increasing renewable energy capacity, battery storage, industrial demand and power-market reforms to support exchange volume growth. • Market Coupling Timeline: Management estimates that implementation of market coupling could take another 1.5–2 years, depending on final regulations and operational preparations. • CY2026 Market Coupling Outlook: Management does not expect market coupling to be implemented during calendar year 2026. • Market Coupling Regulatory Status: CERC's draft market coupling regulations remain under consideration, with no final regulations notified at the time of the call. • Market Coupling Implementation: Management highlighted that coupling would require new software, hardware integration, settlement systems, coordination among exchanges and extensive mock trials. • Market Coupling Legal Proceedings: Management stated that the Supreme Court and APTEL proceedings clarified that market coupling cannot be implemented solely through the earlier order without formal regulations. • Future Legal Options: Management indicated that IEX could challenge final regulations through appropriate legal forums if it is adversely affected. • Market Coupling Operator: CERC's draft regulations propose Grid India as the market coupling operator. • Real-Time Market Coupling: Management believes coupling in RTM would be operationally challenging because of the short bidding and market-clearing timelines. • RTM Auction Reform: Regulatory proposals envisage reducing the RTM bidding window from 15 minutes to five minutes and gate closure time from 75 minutes to 50 minutes. • RTM Growth Outlook: Management expects RTM trading to grow faster than DAM over the coming years as renewable generation and demand variability increase. • RTM Historical Growth: Management indicated that RTM trading volumes have grown at approximately 30–35% CAGR since its introduction. • DAM vs RTM Strategy: Management considers both segments core products and indicated that volume shifting between them does not materially affect transaction fee realization because charges are the same. • Exchange Market Share: Management indicated that IEX maintains more than 99% market share in both DAM and RTM, with Q2 share estimated around 99.2–99.3%. • Market Share Retention: Management expects its customer relationships, liquidity, technology infrastructure and integrated trading systems to support market share retention even if coupling is introduced. • Customer API Integration: Company has integrated its bidding and back-office systems with major customers, including distribution utilities. • API-Based Trading: Management indicated that a substantial share of trading volumes is already processed through integrated APIs. • Customer System Integration: IEX's infrastructure connects customers' power forecasting, bidding, settlement, reconciliation and reporting systems directly with the exchange. • AI-Based Bidding Assistant: Company is developing an AI-assisted bidding solution for DISCOMs to simplify order placement and improve trading efficiency. • AI & Data Analytics: Management is expanding automated trading tools, market data analytics, digital customer interfaces and cybersecurity capabilities. • DISCOM Trading Contribution: Distribution utilities account for approximately 80% of the electricity purchase volumes on IEX. • Term-Ahead Market Share: Management indicated that IEX's share in TAM remains approximately 35%, with activity distributed across different power exchanges. • Term-Ahead Market Outlook: Management expects demand uncertainty and power shortages to influence trading across daily, weekly and monthly contracts. • TAM Contract Mix: Management indicated that daily, weekly and monthly contracts account for more than 70% of term-market volumes, while intraday and other short-duration contracts contribute less than 30%. • Electricity Price Outlook: Management indicated that exchange prices had moderated toward approximately ₹4 per unit by late October, compared with elevated Q2 levels. • Day-Ahead Market Prices: Average DAM prices increased approximately 46% YoY to ₹5.72 per unit during Q2 FY27. • Real-Time Market Prices: Average RTM prices increased approximately 49% YoY to ₹5.24 per unit during Q2. • Power Demand Outlook: Management expects structural electricity demand growth from industrial activity, electrification, data centers, artificial intelligence, electric vehicles and new manufacturing capacity. • Renewable Energy Trading: Management expects increased renewable capacity and variable generation to create additional trading opportunities on power exchanges. • Battery Energy Storage Opportunity: Management expects battery storage systems to increasingly use exchange markets for charging, discharging and price arbitrage. • Battery Storage Arbitrage: Management highlighted an arbitrage opportunity exceeding ₹6.5 per unit between low-price and high-price periods for suitable battery storage systems. • Battery Capacity Outlook: Management cited expectations that India's battery storage capacity could exceed 100 GW by 2032, supported by government schemes and private-sector investment. • Battery Storage Merchant Model: Management indicated that merchant battery storage projects are increasingly relying on liquid exchange markets for commercial viability. • FDRE Trading Opportunity: Management expects firm and dispatchable renewable energy projects to generate surplus electricity that can be sold through exchanges. • Green Day-Ahead Market Opportunity: Regulatory recognition of GDAM power for eligible storage systems could support higher green electricity trading volumes. • Green RTM Launch: IEX is awaiting regulatory approval to introduce a Green Real-Time Market contract. • Term-Ahead Contract Expansion: Company is seeking approval to extend the maximum contract duration in the Term-Ahead Market from three months to 11 months. • Peak Power Contracts: IEX is awaiting regulatory approval to introduce Peak Term-Ahead and Peak Real-Time Market products. • Carbon Credit Trading: Company has filed a petition seeking regulatory approval to facilitate carbon credit certificate trading through its exchange platform. • Carbon Market Outlook: Management expects the development of India's carbon credit trading framework to create additional opportunities for exchange-based trading. • IGX IPO Timeline: Management indicated that the Indian Gas Exchange IPO process remains on track following submission of its DRHP in July 2026. • IGX Shareholding Reduction: IEX is required to reduce its holding in IGX from approximately 47.3% to 25% by December 2026 under PNGRB regulations. • IGX Business Outlook: Management expects strong gas trading activity to continue, supported by domestic gas producers and higher gas-based power generation. • IGX Power Sector Contribution: Approximately 30% of IGX gas trading volumes during Q2 came from the power sector. • IGX Q2 Trading Volumes: Gas trading volumes increased approximately 160% YoY to 42 million MMBtu. • IGX H1 Trading Volumes: Volumes increased approximately 71% YoY to 70 million MMBtu. • IGX Q2 Net Profit: PAT increased approximately 144% YoY to ₹23.4 Cr, compared with ₹9.6 Cr. • IGX H1 Net Profit: PAT increased approximately 67.4% YoY to ₹39.7 Cr. • ICX I-REC Growth: ICX issued approximately 52 lakh international renewable energy certificates during Q2, up 38.4% YoY. • ICX H1 Certificate Issuance: I-REC issuance increased approximately 15% YoY to 94 lakh certificates. • ICX Q2 Revenue: Revenue increased approximately 20.8% YoY to ₹2.3 Cr. • ICX H1 Net Profit: Management reported profit of approximately ₹2.7 Cr. • Indian Coal Exchange: IEX has incorporated Indian Coal Exchange Limited as a wholly owned subsidiary to establish a physical-delivery coal trading platform. • Coal Exchange Regulatory Approval: The subsidiary applied for a coal exchange licence with the Coal Controller Organisation in September 2026. • Coal Exchange Business Model: Management intends to create a transparent, technology-enabled marketplace for physical coal trading and price discovery. • Mineral Exchange Opportunity: Management is exploring opportunities arising from the government's notification of regulations for mineral exchanges. • REC Market Outlook: Management expects renewable energy certificate trading volumes to remain subdued due to changes in compliance mechanisms and reduced buying by major consumers. • REC Volume Decline: Q2 REC trading declined to approximately 15.3 lakh certificates from 44 lakh certificates YoY. • REC Demand Recovery: Management indicated that some participants could return to the market if certificate prices decline further. • REC Revenue Contribution: Management indicated that REC trading is no longer a significant contributor to IEX's revenue. • Share Buyback Outlook: Management confirmed that a share buyback is under active consideration as part of its capital allocation review. • Buyback Approval Status: No buyback amount, price or execution timeline was announced; any decision remains subject to board consideration. • Dividend Payout Policy: Management indicated that IEX has historically distributed approximately 60–65% of profits through dividends. • Surplus Cash Allocation: Management is evaluating dividends, buybacks and other capital allocation opportunities to enhance shareholder returns. • Settlement Funds: Management clarified that exchange settlement and member margin funds are regulated and cannot be freely deployed for shareholder distributions. • Treasury Income Outlook: Management expects treasury income to remain dependent on settlement balances, trading activity, interest rates and money-market conditions. • Q2 Electricity Trading Volume: Electricity trading volumes increased approximately 12.7% YoY to 39.7 billion units. • H1 Electricity Trading Volume: Electricity volumes increased approximately 14.2% YoY to 77 billion units. • Q2 RTM Volume: Real-Time Market trading increased approximately 10.5% YoY to 16.5 billion units. • RTM Revenue Mix: RTM contributed approximately 42% of Q2 electricity trading volumes, exceeding DAM's contribution for the second consecutive quarter. • DAM Volume Mix: Management indicated that DAM accounts for approximately 35% of total electricity trading volumes. • RTM Daily Trading Record: Company recorded a single-day RTM trading volume of 315 million units during September 2026. • Q2 Revenue Performance: IEX revenue increased approximately 10.7% YoY to ₹203 Cr, compared with ₹183.3 Cr. • Q2 Net Profit: PAT increased approximately 12.9% YoY to ₹139 Cr, compared with ₹123 Cr. • India H1 Power Demand: Electricity consumption increased approximately 10.2% YoY to 897 billion units. • India Q2 Power Demand: Electricity consumption increased approximately 11.5% YoY to 502 billion units. • Peak Power Demand: Management indicated that peak electricity demand reached 271 GW during summer 2026 and remained elevated at 269 GW in September. • Long-Term Power Demand: Management cited projected electricity demand of approximately 2,700 billion units and peak power demand of 388 GW by 2032. • Thermal Capacity Expansion: Management highlighted the government's revised thermal power capacity addition roadmap of approximately 115 GW by 2035. • Coal Supply Situation: Management highlighted low coal inventories at thermal power stations during October 2026, which could affect near-term electricity supply and prices. • Key Challenges: Uncertainty around market coupling regulations, potentially changing exchange market structures, REC volume weakness, weather-driven electricity demand volatility, high power prices, coal availability and execution of new exchange businesses remain important factors.

INDIAN ENERGY EXC LTD

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