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Business Profile: Power Exchange India Limited (PXIL)

Power Exchange India Limited (PXIL) operates as a critical component of India's energy market, providing a robust, technology-enabled platform for the trading of electricity at a national level. The business is centered on facilitating short-term transactions, typically for a duration up to one year, thereby enabling market participants to optimize their power procurement costs. PXIL’s role is essential in supporting generators and consumers through transparent and efficient price discovery mechanisms.

1. Products and Service Offerings

PXIL’s core technological infrastructure is the 'PRATYAY' platform, which serves as the trading gateway for various market segments. The product portfolio allows generators (including IPPs without Power Purchase Agreements) to sell power in all segments of the power exchanges.

The Group facilitates transactions across several key product categories:

New and Proposed Contracts on ‘PRATYAY’ Platform PXIL is actively modifying its product lineup in response to regulatory and market demands:

• 11-month Ahead Delivery Duration Contract: Approval is sought for increasing the delivery duration to transact in conventional, green, and REC segments.
• High Price Bilateral Contracts: To be introduced in Contingency and TAM (Term Ahead Market) segments.
• New Contracts in REC segment: To be introduced under the provisions of the REC Regulation 2022.

Discontinued Contracts The Exchange discontinued certain product offerings during the year, including the Intra Day Contract, the ‘Intra Day Dynamic’ Contract, and the ‘DAC Dynamic’ Contract.

2. Revenue Sources and Financial Performance (Standalone FY 2024-25)

PXIL reported a substantial increase in total income and profitability for the fiscal year ended March 31, 2025.

A. Key Financial Metrics (₹ in Crore)

The financial results show robust growth in both the top line and bottom line:

B. Operational Revenue Breakdown (₹ in Crore)

Operational revenue grew significantly year-on-year, primarily driven by transaction volumes:

1. Transaction Charges: The largest source, amounting to ₹ 51.93 Crore (₹ 5192.96 Lakhs).
2. Other Operating Revenue: This includes processing fees and other charges, totaling ₹ 24.17 Crore (₹ 2417.19 Lakhs) for ancillary charges and ₹ 0.97 Crore (₹ 97.40 Lakhs) for other operating revenue.

C. Other Income

Other income streams contributed ₹ 15.87 Crore, including Interest Income earned on financial assets measured at amortized cost, which totaled ₹ 10.85 Crore.

4. Recent Developments and Highlights

The fiscal year 2024-25 was notable for significant market growth, regulatory activity, and strategic planning for the future.

Market Growth and Performance

• Overall Volume Increase: The total volume transacted across all short-term segments increased by 9.2%, rising from 218.22 BU in FY 2023-24 to 238.35 BU in FY 2024-25.
• Highest Generation: Total energy generated grew from 1,511,682 MU to 1,572,008 MU.
• Short-Term Market Share: Short-term transactions accounted for 13.03% of total generation in FY 2024-25, compared to 12.55% in the previous year.

Regulatory Compliance and Development

• CERC Directives: The Central Electricity Regulatory Commission (CERC) issued several Suo-motu Orders that governed transactions at the 'PRATYAY' platform:
  • One order addressed the need to encrypt the bidding session from bid submission to the end of the session, ensuring bid data is not accessible until matching.
  • Another order mandated that bids be checked against the availability of funds or collateral in the risk management system, stipulating that re-run provisional/final results due to fund shortage deletions shall not be permitted.
  • Specific provisions relating to the cancellation of bids (post trading hours) were addressed.
• Compliance Norms: A regulatory update noted the necessity for the Company to comply with prescribed shareholding norms and align its ownership structure by September 30, 2024.
• Market Coupling Pilot: The Exchange is anticipating the pilot phase of Market Coupling, which is aimed at establishing directions to discover a single uniform price across all exchanges.

Strategic Initiatives

• Future Roadmap: PXIL engaged M/s Deloitte as a strategy consultant to develop a roadmap for the future growth of the Company.
• Dividend Payout: The total amount of dividend paid during the year was ₹ 8.77 Crore