Indian Energy Exchange Ltd. is actively considering a share buyback as part of its capital allocation strategy, with management confirming the option remains under evaluation. According to reports from NDTV Profit, Chairman and Managing Director Satyanarayan Goel stated during the company's Q2 FY27 earnings call that the buyback option is definitely being evaluated and will be considered. Goel emphasized that "buyback, as I told you, that we are definitely evaluating this and we will consider this. So this option is open. We are working on this," in response to investor questions about the company's capital allocation plans. The discussion followed questions from investors about the company's cash position, dividend payouts and the absence of a buyback despite the decline in its share price.
As reported by NDTV Profit, IEX reported consolidated cash and cash equivalents of ₹11.90 crore as of September 30, 2026, compared with ₹37.36 crore at the end of March. The company's current investments stood at ₹1,871.91 crore, while bank balances other than cash and cash equivalents amounted to ₹58.88 crore. Chief Financial Officer Vineet Harlalka confirmed that the company has regularly distributed around 60-65% of its profits as dividends and is exploring options for deploying surplus cash to create the best value for shareholders. Harlalka explained that the company is "looking and exploring all the options" regarding surplus cash deployment, with the focus on what would create optimal value for shareholders.
According to NDTV Profit reports, Harlalka explained that changes in taxation of buybacks had made the option less attractive to shareholders in recent years, leading to the company's decision not to pursue buybacks. However, the company is now reassessing available options as the taxation environment may have changed. Goel reiterated that a buyback remains under consideration when another investor raised the possibility of using cash reserves to repurchase shares, emphasizing that this option remains open for the board's consideration.
As reported by NDTV Profit, IEX has not indicated when its board could take up the buyback proposal or whether it would recommend a buyback. The company's management emphasized that all options for deploying surplus cash are being explored, with the focus on creating the best value for shareholders. The evaluation process is ongoing as the board continues to assess various capital allocation strategies to maximize shareholder returns, with Goel confirming that "this option is open" for further consideration.
