The concerns for the Indian Energy Exchange (IEX) are far from over. Recently, CERC has formally designated Grid India as the sole Market Coupling Operator (MCO) and will be responsible for the operation and management of the coupling process through a dedicated internal cell. Is this the end of the monopoly for IEX?
Motilal Oswal on IEX after new regulations
Motilal Oswal Financial Services has maintained its Neutral rating on the stock, with a target price of Rs 137, implying an upside of 9% from the current market price. “We model a volume CAGR of 7% only (ex-RECs) over FY26-FY28, which already takes into account market share loss due to market coupling, along with a 10% reduction in transaction fees in the DAM segment,” it added.
The new regulations designate Grid India as the sole Market Coupling Operator (MCO). It reiterated the phased implementation of market coupling, covering the Day-Ahead Market (DAM), Real-Time Market (RTM), and other such segments based on regulatory preparedness. Lastly, the regulations require Grid India (MCO) to develop a comprehensive Power Market Coupling Procedure (PMCP) within 6 months from the notification of the amendment.
Phased implementation of market coupling
Market coupling is intended to be implemented for the Day-Ahead Market (DAM), Real-Time Market (RTM), and such other market segments, with phased implementation depending on regulatory readiness.
Until the notified implementation date, power exchanges will continue independent price discovery; thereafter, this function will be centralised under Grid India. The regulation is in the draft stage and is open for comments until 16th May’26.
IEX share price performance
The share price of IEX has fallen 5.8% in the last five trading sessions. The stock has given a return of 9% in the past one month. However, the stock has declined 13% in the last six months. IEX’s share price has declined 34% over the previous 12 months.
IEX Q3FY26
The company’s net profit for the period grew by 11% year-on-year to Rs 119 crore in the third quarter of FY26, while its revenue came in at Rs 146 crore, a growth of 10% YoY from Rs 132 crore it posted during the same quarter last year.
On the operating front, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at Rs 122.3 crore, up 8% from Rs 113.4 crore in the same period a year back. EBITDA margins remained stable at 84% from 85.9%.