The IEX share price continues to be in focus. It is up 2% in trade today after the roller coaster session last week. JM Financial Institutional Securities has maintained an ‘Add’ rating on Indian Energy Exchange with a price target of Rs 158, indicating an upside of 13.9%, even as the company’s challenge to the market coupling order was taken up by the Appellate Tribunal for Electricity.
According to JM Financial, the brokerage said that the hearing focused only on the regulatory process followed by the Central Electricity Regulatory Commission and did not examine market coupling itself.
Hearing examined regulatory process
According to JM Financial Institutional Securities, Indian Energy Exchange has challenged the July 2025 market coupling order issued by the Central Electricity Regulatory Commission and moved the Appellate Tribunal for Electricity. The brokerage said the proceedings during the latest hearing were limited to the process adopted by the regulator. JM Financial added that CERC has submitted an affidavit stating that it is not withdrawing its order on market coupling.
Points raised by IEX before the tribunal
JM Financial Institutional Securities said the legal counsel for Indian Energy Exchange argued that issuing a staff paper and seeking stakeholder comments is a normal regulatory practice meant to ensure transparency and adherence to natural justice. The staff paper released in August 2023 had sought views on whether the existing power market conditions supported market coupling and on its impact on technology and competition. JM Financial noted that the final order issued in July 2025 introduced a “round robin” methodology, which was not mentioned in the staff paper, and this difference was highlighted during the hearing.
Concerns flagged on pilot study
In its analysis, JM Financial Institutional Securities referred to arguments made by Indian Energy Exchange regarding the shadow pilot study conducted by Grid India in 2024. The brokerage said the exchange pointed out that the study initially required nearly 29 months of historical data, which was later reduced to four months. JM Financial added that the report from the study has not been made public and that even the final order acknowledges that gains in clearing price and economic surplus were negligible.
JM Financial on Indian Energy Exchange
JM Financial Institutional Securities has maintained its ‘Add’ rating on Indian Energy Exchange and valued the stock at 30 times FY28 earnings to arrive at a price target of Rs 158. The brokerage said that while it continues to believe market coupling may be introduced at some point, the timing and method remain uncertain due to complexity, the likelihood of a fresh formulation process, and the potential for further litigation. JM Financial said this uncertainty is reflected in its current valuation and recommendation.
Conclusion
JM Financial Institutional Securities said the next hearing at the Appellate Tribunal for Electricity is scheduled for 19 January 2026. Until there is greater clarity from the tribunal and the regulator, the brokerage said its view on Indian Energy Exchange remains unchanged, with the focus staying on how the regulatory process progresses.