Indian Energy Exchange Ltd. is considering a share buyback as it evaluates ways to deploy surplus cash and create value for shareholders, Chairman and Managing Director Satyanarayan Goel said during the company's Q2 FY27 earnings call on Friday.
"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," Goel said in response to an investor's question 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.
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IEX reported consolidated cash and cash equivalents of Rs 11.90 crore as of September 30, 2026, compared with Rs 37.36 crore at the end of March. Its current investments stood at Rs 1,871.91 crore, while bank balances other than cash and cash equivalents amounted to Rs 58.88 crore.
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Chief Financial Officer Vineet Harlalka said IEX had regularly distributed around 60-65% of its profits as dividends. The company was also exploring options for deploying its surplus cash.
"Regarding the surplus cash, we are looking and exploring all the options," Harlalka said, adding that the company would consider what would create the best value for shareholders.
Harlalka also explained why the company had not pursued buybacks in recent years. Changes in the taxation of buybacks had made the option less attractive to shareholders, he said. The company was now reassessing the available options.
Goel reiterated that a buyback remained under consideration when another investor raised the possibility of using the company's cash reserves to repurchase shares.
"Share buyback, as I told you, that we are definitely evaluating this and we will consider this. So this option is open," he said.
IEX has not indicated when its board could take up the proposal or whether it would recommend a buyback.
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