Hindustan Power Exchange(HPX) Business Model And Financials Analysis

India is the third-largest producer and consumer of electricity in the world, with over 472 gigawatts (GW) of installed capacity as of April 2025.
Power demand has surged by 33% in the last five years and is expected to rise by another 6% annually as electrification and per-capita usage expand.

Amid this energy boom, one company is quietly transforming how electricity is traded: Hindustan Power Exchange Limited (HPX).

Backed by ICICI Bank, BSE, and PTC India, HPX is building the future of power trading faster, smarter, and more efficiently than ever before.
Let’s explore how this young exchange is shaking up the power sector.

About Hindustan Power Exchange (HPX)

Founded in July 2022, HPX (formerly known as Pranurja Solutions Limited) is India’s third licensed power exchange, operating under the approval of the Central Electricity Regulatory Commission (CERC).

Promoters and Founding Institutions

• PTC India Ltd, a pioneer in power trading and a key player in South Asia’s energy markets

• BSE Investments Ltd, Asia’s oldest stock exchange, is bringing deep capital market expertise

• ICICI Bank Ltd, India’s largest private bank, offering financial credibility and infrastructure support

HPX enables trading of electricity between generators, distribution companies (DISCOMs), and large industrial consumers across:

• Day-Ahead Market (DAM)

• Real-Time Market (RTM)

• Term-Ahead Market (TAM)

• Renewable Energy Certificates (REC)

Think of it as the NSE of India’s power market, where instead of equities, electricity is the commodity being traded.

HPX Business Model

HPX operates on a transaction-driven exchange model, earning through:

• Transaction fees charged per trade

• Membership and connectivity fees from participants

• Clearing and settlement charges ensure secure trade completion

• Value-added services like analytics, mock trading, and regulatory support

It’s a scalable, high-margin business model. Once the platform infrastructure is established, incremental trades directly boost profitability.

Industry Overview and Competitors

The Indian power exchange industry is small but critical, ensuring transparent, real-time electricity trading between producers and consumers.

There are only three power exchanges approved by CERC:

1. IEX (Indian Energy Exchange) – the market leader with over 90% share

2. PXIL (Power Exchange India Ltd) – smaller, established player

3. HPX (Hindustan Power Exchange) – the newest entrant, backed by strong institutional investors

While IEX dominates in volumes, HPX is differentiating through technology, low transaction costs, green products, and market efficiency.
With India pushing for renewable trading and market coupling, HPX is positioned to capture the next growth wave.

What Makes HPX Stand Out?

HPX’s USP lies in its technology and design:

• Advanced trading platform operating 24×7

• Efficient pricing mechanism ensuring optimal benefit-to-risk ratio

• Smart margining system minimising transaction costs

• Dedicated platforms for Green and Energy Saving Certificates

• End-to-end regulatory and portfolio support

HPX isn’t just matching trades; it is modernising the power market ecosystem.

Shareholding Structure

This balanced ownership, blending energy expertise, financial infrastructure, and banking discipline, ensures strong governance and long-term stability.

HPX Financial Performance

HPX’s financial performance shows a stunning growth trajectory since its inception.

Profit & Loss Summary (Rs in Crores)

Key Takeaways

• Revenue Growth: From Rs 2.3 Cr in FY22 to Rs 43.6 Cr in FY24, an 18× increase in two years

• EBITDA Turnaround: From a loss of Rs 2.7 Cr to a profit of Rs 21.8 Cr

• Profit After Tax: Rs 14.9 Cr in FY24 with strong 34% net margins

• Earnings Per Share (EPS): Rebounded from -Rs 0.18 to Rs 0.27, a 250% swing to profitability

HPX’s financials clearly indicate a shift from startup losses to sustainable profitability.

Cash Flow Analysis

(Rs in Crores)

• Operating Cash Flow turned strongly positive, from a negative Rs 2 Cr in 2022 to Rs 173 Cr in 2024, reflecting powerful core operations

• Investing Activity of Rs 28.9 Cr directed toward technology and infrastructure, showing an expansion focus

• Financing Activity minimal, confirming a low-debt, self-funded structure

• Net Cash Flow positive at Rs 143 Cr in FY24, proving HPX is now cash-rich and financially independent

This healthy cash generation is the hallmark of a scalable and capital-efficient exchange business.

Share Price Overview

Hindustan Power Exchange unlisted share price showed short-term volatility, dropping to Rs 25 in early September 2025 before rebounding to Rs 60 by October. This 100% recovery highlights strong investor confidence backed by improving fundamentals and profitability.
The stock now consolidates around Rs 55–60, suggesting stability and market trust.

Bright Future For HPX?

In just two years, Hindustan Power Exchange has evolved from a new entrant to one of India’s fastest-growing power exchanges. Backed by trusted promoters, driven by advanced technology, and now financially strong, HPX is positioning itself to challenge the dominance of IEX in the coming years.

With India’s energy demand climbing and green power becoming mainstream, HPX stands at the forefront of the next big transformation in the electricity trading ecosystem. If you believe in the future of power markets and India’s clean energy revolution, HPX Unlisted Shares is a company to watch.