Hindustan Power Exchange Limited

Total revenue increased from INR 17.4 Cr in FY23 to INR 43.6 Cr in FY24, INR 40.6 Cr in FY25 and INR 47.7 Cr in FY26, representing a 39.8% FY23-FY26 3-year CAGR

FY26 mechanical EBITDA stood at approximately INR 9.7 Cr, versus INR 17.0 Cr in FY25; EBITDA margin declined from 41.8% to 20.3%

FY26 PAT declined from INR 10.7 Cr to INR 4.6 Cr, down 56.9% YoY; PAT margin stood at 9.7% of total revenue

HPX had 0.0x D/E, with the audited accounts confirming no borrowings from banks or financial institutions as of March 31, 2026

Reported ROE declined from 16.0% in FY25 to 6.0% in FY26, reflecting the 56.9% decline in PAT despite an increase in shareholders' equity

CFO moved from INR 18.5 Cr positive in FY25 to INR (131.1) Cr in FY26; the FY26 outflow was substantially affected by a INR 137.3 Cr reduction in other financial liabilities

Electricity traded through Indian power exchanges increased from 143,753 MU in FY25 to 168,551 MU in FY26, +17.3% YoY

The short-term electricity market increased from 15.16% of total electricity volumes in FY25 to 17.20% in FY26, while power-exchange penetration increased to 10.96%

IEX alone holds approximately 84.0% of the Indian power-exchange market

Power exchanges operate under CERC Power Market Regulations, while FY26 included continuing regulatory proceedings on market coupling, including draft regulations and pending Supreme Court proceedings

FY26 foreign-exchange earnings were NIL, while foreign-exchange outgo was approximately INR 2.2 Cr; HPX remains predominantly an India-focused power exchange

Managing Director Harish Saran has 35+ years of power-sector experience, placing leadership experience above the 30-year threshold

The Board comprised 6 Directors with 2 Independent Directors, resulting in 33.3% independent representation

No material litigation affecting the Company's financial position was reported, no fraud was reported by auditors, and no promoter-share pledge was identified in the reviewed FY26 disclosures

Recurring FY26 RPT expenses were approximately INR 10.3 Cr, largely comprising INR 8.3 Cr of BSE Technologies software/licence charges and INR 1.6 Cr of KMP compensation; this represented approximately 21.5% of FY26 total revenue

The Company is valued at 300.0x FY26 P/E, representing a 1,400.0% premium. Current direct listed peer IEX trades at approximately 22.6x P/E

Estimated HPX EV/EBITDA stands at approximately 118.0x, compared with current IEX EV/EBITDA of approximately 13.9x, implying an approximately 748.0% premium

The Company is valued at approximately 18.5x P/B, based on INR 1,326.0 Cr market cap against FY26 equity of INR 71.9 Cr