IEX share price today: Indian Energy Exchange stock crashes 15%; CERC clears market coupling rollout

IEX share price today: The Indian Energy Exchange (IEX) shares dropped 15% to their lower circuit at Rs 159.7 on BSE on Thursday following the Central Electricity Regulatory Commission’s (CERC) official approval to implement market coupling in India’s power sector.The regulatory announcement came shortly before IEX’s scheduled first-quarter results for FY26, causing increased concern amongst investors regarding the company’s immediate future.A late Wednesday order from CERC indicated the introduction of market coupling would occur in stages, with the Day-Ahead Market (DAM) implementation set for January 2026. This decision follows thorough discussions with Grid-India and various power sector participants.The objective of market coupling is to standardise price discovery by consolidating bids from different power exchanges for centralised clearing. Whilst this system aims to enhance operational efficiency and minimise regional price variations, it could affect the revenue structure of established organisations like IEX, according to an ET report.IEX presently functions as a standalone entity with significant presence in the DAM and Real-Time Market (RTM). The new coupling system will require centralised matching of bids from IEX and other exchanges, which could reduce IEX’s current market advantages.Bernstein reduced its price target for IEX to Rs 122 from Rs 160, whilst keeping a ‘Market-Perform’ rating. The firm stated, “Coupling… as bad as it gets,” highlighting concerns about IEX’s transaction fees and market position. “With the moat of liquidity gone, the only way to compete is transaction charge,” they concluded.In contrast, UBS retained its ‘Buy’ recommendation with a Rs 285 target. Despite acknowledging the negative development, they referenced the Grid-India report showing minimal benefits of 0.01-0.3% in savings or cleared volume. They also indicated that RTM coupling would be considered subsequently. During FY25, DAM and RTM collectively generated approximately 80% of IEX’s income.Axis Capital discussed potential earnings impact, calculating that IEX’s EPS might have been roughly 30% lower in FY25 had market coupling been operational, due to reduced market share.The focus of market participants will be on the management’s views regarding market coupling implications, volume projections, and IEX’s strategy leading up to the January 2026 implementation.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)