The Indian Energy Exchange Ltd (IEX) has reported its highest-ever monthly traded volume in July 2024, witnessing a 56% year-over-year increase.

What Happened: IEX announced on Monday morning that the total volume, including certificates, reached 13,250 million units in July 2024. Electricity volume stood at 10,093 million units, marking a 29% increase. Green electricity volume for the month stood at 1 billion units, showing a substantial 259% growth.

Renewable energy certificates (REC) volumes also saw a massive surge, increasing 405% to 3,150 million units. The REC market recorded an all-time low price of ₹120 per certificate in the trading session held on July 31, 2024.

The day-ahead market (DAM) volume rose by 27% to 5,056 million units in July 2024. The real-time electricity market (RTM) volume increased 31% to 3,334 million units.

Shares of the power exchange were deep in the red on Monday despite the update as the broader market was under pressure, with both the Nifty and Sensex down around 2% amid global fears of a recession in the US.

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The IEX Green Market, which includes the green day-ahead and green term-ahead market segments, achieved a volume of 989.6 million units in July 2024, marking a 259% increase.

The record-breaking performance by IEX comes on the heels of a strong Q1 result where the company saw its net profit jump 27% year-on-year to ₹96.44 crore. The company's revenue from operations increased by 18.75% to ₹123.5 crore. In June, the electricity volume produced by the company soared 24.7% year-on-year to 10,185 million units.

However, despite the positive momentum, analysts have advised caution due to the threat of market coupling and limited upside from current levels. Bernstein had an “underperform” call on the stock with a target price of ₹110. The implementation of market coupling expected from the regulator in the next three to six months could introduce some uncertainty for the stock.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.