Shares of Indian Energy Exchange (IEX) tumbled 15 per cent at Rs 159.70 at 10:40 am. The shares hit their lower circuit at Rs 169.10 on the BSE on Thursday after the Central Electricity Regulatory Commission (CERC) formally approved the phased implementation of power market coupling in India. The announcement came just hours before IEX’s Q1FY26 results, which investors eagerly await.
CERC’s Market Coupling Order: What You Need to Know
In a late Wednesday order, the CERC directed that market coupling will begin with the Day-Ahead Market (DAM), using a ‘round-robin’ model from January 2026. This decision follows extensive consultations with Grid-India, the national grid operator, and various power sector stakeholders aimed at enhancing market transparency, efficiency, and price discovery.
The commission stated, “Based on submissions and consultations, the process for implementing market coupling will be initiated in a phased manner.”
What is Power Market Coupling?
Power market coupling unifies price discovery across multiple power exchanges by pooling bids and clearing them centrally, promoting price convergence and eliminating disparities across regions and platforms. Currently, exchanges like IEX operate independently. Market coupling will enable bids from all exchanges to be matched centrally, resulting in a single, uniform market clearing price.
This structural shift is expected to impact market operations, settlement processes, and trade volumes handled by exchanges like IEX, which holds a dominant position in the DAM and Real-Time Market (RTM).
IEX Q1FY26 Earnings in Focus
The timing of this regulatory announcement coincides with IEX’s earnings release scheduled later today. Investors will closely watch for management’s insights on how the market coupling framework might affect future operations and revenue.
Earlier, IEX reported steady growth in trading volumes across key segments, including DAM, RTM, and the Green Market. The upcoming results are expected to shed light on demand trends and exchange activity for April-June 2025.
IEX Share Price Performance
1-year decline: 3.07 per cent
Year-to-date (YTD) decline: 6.21 per cent
Last 6 months: Nearly flat, down 0.18 per cent
Last 3 months: Declined 11.35 per cent
Past month: Fell 9.93 per cent
