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Business Standard
11-06-2025
- Business
- Business Standard
IEX shares crash 10% on market coupling buzz; what should investors do?
IEX share price today: Indian Energy Exchange (IEX) witnessed a sudden decline in its share price on Wednesday, June 11, 2025. IEX shares tumbled 10.2 per cent today, hitting an intraday low of ₹188.5 per share on the BSE amid heavy volumes. The sudden decline in IEX share price came amid a report that Power Minister Manohar Lal could apprise all the relevant stakeholders on market coupling and its associated benefits. A report by TV channel CNBC TV18 said that market coupling would happen through a broad bid, and not any internal bid. Business Standard could not independently verify the report. At 3:05 PM, IEX stock was trading 7.8 per cent lower at ₹193.2 per share, weighed by 3.17 million volumes on the BSE. By comparison, around 1.5 million shares, on average, changed hands on the counter over the past two weeks. Combined with the volumes on the National Stock Exchange (NSE), around 69.21 million shares have changed hands on both the exchanges so far in trade. In the derivatives market, put options for IEX scrip jumped three-fold the average. This was the stock's biggest one-day decline in 15 weeks. What is market coupling? Market coupling is a process through which buy and sell bids from all the three power exchanges -- IEX, Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX) -- will be aggregated to arrive at a single market clearing price (MCP). At present, each power exchange collects their own buy and sell bids to arrive at a MCP of its own. This leads to variation in the price of electricity on each exchange. Market coupling process, in the electricity markets, aims to unify power trading platforms to ensure efficiency, transparency, and price discovery across interconnected markets. At present, India is exploring market coupling through a central entity, likely Grid-India, to unify price discovery for the Day-Ahead Market (DAM) and other segments. How will market coupling affect IEX? While market coupling is beneficial from consumer point of view as it will encourage more competition and transparency in the electricity prices, while improving liquidity across exchanges to reduce price volatility. Investors, typically, sell IEX shares due to market coupling fears as the exchange has a dominant market share of around 90 per cent in the electricity market. A level playing field across exchanges would threaten the influence it has in the price discovery mechanism. That apart, any shift in volumes or trade preference from IEX to other power exchanges could adversely affect IEX's revenue due to lower fee income. IEX share price history Over the past one month, IEX share price has surged around 11 per cent on the BSE as against a 4 per cent rise in the benchmark Sensex index. From its 52-week low level of ₹151 per share, the stock is up 39 per cent. IEX stock analysis: should you buy or sell IEX shares? According to analysts at Reliance Securities, the recent uptrend in IEX stock had helped it breach the previous resistance line on the daily chart. The stock's 10-day moving average line is well above the 21-day moving average line, indicating a bullish trend. Further, the Relative Strength Index (RSI) is showing a strong upward movement, reaching 73.18. The level is still below the 'overbought' threshold of 80. "Investors may consider taking an entry position at the current market price (CMP), as the stock could provide an opportunity for further upside movement. The Risk to Reward Ratio is favorable at 1: 1.60," the brokerage said in a note on Wednesday. The brokerage suggests investors buy IEX stock at current levels with a stop loss of ₹186. Their two-month share price target on the stock is ₹224, followed by ₹251. Fundamentally, JM Financial Institutional Equities has initiated coverage on IEX stock with a 'Buy' rating and a share price target of ₹231 as it believes the risk-reward is not in the favour the regulators who wish to implement market coupling (MC) to centralise scheduling and dispatch of power and reduce costs. Meanwhile, demand for power, both energy and peak power, in India has grown at an unprecedented rate of 8.5 per cent during FY21-24 vs the historical average of 4.5-5.5 per cent. It is projected to grow at a CAGR of more than 6 per cent during FY24-32. Further, the share of renewables (solar, wind) in total generation has increased from 10 per cent in FY20 to 14 per cent in FY25, and it is likely to increase to 24 per cent/35 per cent by FY27/FY32. IEX's revenue, meanwhile, grew from ₹198.6 crore in FY17 to ₹537.3 crore in FY25, registering a CAGR of 13 per cent, broadly in line with the growth in the power exchange market, which expanded at a CAGR of 15 per cent from FY17-FY24. During the same period, the company's Ebitda increased from ₹143.5 crore in FY17 to ₹453.7 crore in FY25, with Ebitda margin improving from 72 per cent to 84 per cent. "With rising power demand and an increasing share of exchange-based transactions in the total electricity market, we expect the volume traded through the exchange to grow at a CAGR of 13 per cent during FY25-28. This is estimated to drive growth in revenue, and PAT at CAGRs of 16 per cent and 14 per cent, respectively, over the same period," JM Financial said.
Business Upturn
11-06-2025
- Business
- Business Upturn
IEX shares fall nearly 10% as reports suggest Power Minister to consider consultation on market coupling
Shares of Indian Energy Exchange (IEX) fell sharply on Tuesday, plunging 9.74% to Rs 189.56 on the NSE following news that the Power Ministry will begin stakeholder consultations on market coupling — a structural change that could reshape power trading in India. The stock witnessed a steep intraday fall from above Rs 210 to below Rs 197 after CNBC-TV18 reported that the Power Minister would apprise stakeholders about the benefits of market coupling. Government sources confirmed that the process would be carried out via a broad bid rather than an internal mechanism, a move seen as potentially dilutive to IEX's standalone market power. The development revives market concerns from earlier this year, when the Power Secretary indicated that both the Ministry and the Central Electricity Regulatory Commission (CERC) were reviewing a Grid Controller report on market coupling. Market coupling refers to integrating multiple electricity exchanges to determine a single uniform market clearing price. Analysts believe such a shift may weaken IEX's pricing independence and could trigger structural changes in its current business model. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Mint
09-06-2025
- Business
- Mint
IEX share price jumps over 4% after strong growth in electricity trade volumes. Should you buy?
Indian Energy Exchange (IEX) share price rallied over 4%, extending gains for the second consecutive session, after the company reported strong growth in electricity trade volumes. IEX share price surged as much as 4.70% to a high of ₹ 211.75 apiece on the BSE. IEX reported over 14% growth in electricity traded volume at 10,946 million units (MU) in May as compared to 9,568 MU in the year-ago period. A total of 17.43 lakh Renewable Energy Certificates (RECs) were traded during the month, registering a 65% year-on-year (YoY) increase, IEX said in a regulatory filing. Market clearing price in the Day Ahead Market (DAM) was at ₹ 4.12 per unit during May 2025, a decline of 22% YoY. Market clearing price in the Real Time Market fell 28% YoY at ₹ 3.43 per unit last month. The DAM achieved 3,510 MU volume last month, a decline of 20% from 4,371 MU volume in May 2024. The Real-Time Electricity Market (RTM) reported the highest ever monthly traded volume as the volume increased to 4,770 MU in May 2025 from 3,352 MU a year ago, an increase of 42%. Electricity derivatives are expected to complement the spot market (where IEX is present) over time by drawing in more participants, analysts said. 'Parallelly spot power requirement from renewable integration, real time balancing thereby stabilizing or even increasing spot volumes as seen in EU. IEX's business offers optionality as it aims to launch Green RTM product, 11-month contract (40 BU opportunity) International Carbon Exchange, and Coal Exchange. Over the mid to long term, an uptick in renewable power (from 44% share in FY24 to 60% by FY30) offers continuous opportunity for volume uptick for power exchanges in India,' said Antique Stock Broking. IEX has net cash on the balance sheet at ₹ 1,000 crore and a RoE of 40%. At a PER of 32x FY27E EPS, IEX share price is trading near its historical average, said the brokerage firm. It models 17% annual volume growth over FY26–27E, leading to a similar increase in PAT. Valued at 40x FY27E EPS, Antique Stock Broking maintains a 'Buy' rating on IEX shares with a target price of ₹ 254 apiece. IEX share price has broken out of a 22-week-long double bottom flat base at ₹ 191 and is now heading towards the major resistance at the swing high of ₹ 229, noted Anshul Jain, Head of Research at Lakshmishree Investments. 'Post breakout, IEX stock price has formed a minor base, which is acting as a propeller for continued momentum. The structure remains bullish, supported by strong price action, and further upside is expected as long as the stock sustains above its breakout zone,' Jain said. IEX share price has gained 28% in three months and 16% on a YTD basis. IEX stock has delivered 71% returns in two years and multibagger returns of 281% in five years. At 9:55 AM, IEX share price was trading 4.70% higher at ₹ 211.75 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
04-06-2025
- Business
- Time of India
India adds 1.1 GW solar open access capacity in Q1 2025, down 48% from previous quarter
New Delhi: India added 1.1 gigawatts (GW) of solar open access capacity in the first quarter (Q1) of calendar year (CY) 2025, a decline of nearly 48 per cent from 2.1 GW recorded in the preceding quarter (Q4 2024), according to the Q1 2025 edition of Mercom India's Solar Open Access Market Report. Year-on-year, installations were down by 47 per cent compared to over 2 GW in Q1 2024. The report attributed the slowdown to module shortages caused by the year-end commissioning rush driven by the close of the financial year, a lack of transmission infrastructure, delays in the connectivity approval process, and uncertainty around the Inter-State Transmission System (ISTS) waiver. "The open access solar market is beset by new challenges but the demand for clean energy has not only increased but expanded to encompass solar, wind, and energy storage. Many states are joining the green energy open access route owing to the demand their businesses operating in the state. But ISTS charges waiver would be integral to greater adoption by industries keen on wheeling power from renewable energy resource rich states," said Priya Sanjay, Managing Director at Mercom India. Solar open access projects accounted for 19.8 per cent of the total large-scale solar installations in Q1 2025. Of the open access projects installed during the quarter, 67.4 per cent were standalone solar, 32 per cent were wind-solar hybrid projects, and 0.6 per cent were floating solar installations. Maharashtra led in quarterly solar open access capacity additions, contributing nearly 29 per cent of the installations. The top five states accounted for over 89 per cent of total installations during the quarter. As of March 2025, India's cumulative installed solar open access capacity stood at 21.5 GW. Karnataka remained the leading state in terms of cumulative capacity, accounting for around 24 per cent of total installations. Maharashtra and Tamil Nadu followed, contributing nearly 17 per cent and over 12 per cent respectively. The pipeline of solar open access projects under development or in pre-construction stages was over 31 GW as of March 2025. The top five states comprised nearly 87 per cent of these pipeline projects. In Q4 2024, Adani Green was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for over 41 per cent of the electricity sold. Maharashtra was the top procurer, accounting for 17 per cent of the electricity purchased through G-DAM. The cleared volume of Renewable Energy Certificates (RECs) traded on the Indian Energy Exchange (IEX) rose by 155 per cent quarter-over-quarter (QoQ), while trading in the Green Term Ahead Market (G-TAM) increased by around 72 per cent QoQ. The Q1 2025 Solar Open Access report also offers detailed insights into retail electricity tariffs, power purchase agreement (PPA) prices, and open access-related charges and costs across 15 states.
Business Standard
04-06-2025
- Business
- Business Standard
IEX electricity volume climbs 14% YoY to 10,946 MU in May'25
Indian Energy Exchange (IEX) informed that it has achieved monthly electricity volume of 10,946 million units (MU) in May 2025, registering a growth of 14% YoY basis. During the month, the company has traded 17.43 lakh renewable energy certificates, recording a 55% YoY increase. According to government data published in May 2025, the country's energy consumption reached 148.7 billion units, marking a 4% decline compared to the previous year. The Day-Ahead Market (DAM) volume achieved 3,510 MU volume in May25 as compared to 4,371 MU volume in May24, decline of 20% YoY. The Real-Time Electricity Market (RTM) reported highest ever monthly traded volume in May25. The RTM volume increased to 4,770 MU in May25, from 3,352 MU in May'24, registering an increase of 42% YoY. The Day Ahead Contingency and Term-Ahead Market (TAM), which includes contingency, daily, weekly, and monthly contracts up to three months, traded 1,684 million units (MU) in May25, up 42% YoY. IEX Green Market, comprising the Green Day-Ahead and Green Term-Ahead Market segments, achieved 915 MU volumes during May25 as compared to 622 MU in May24, registering an increase of 47 % YoY. The weighted average price in Green Day-Ahead Market (G-DAM) for May25 was Rs 3.59/unit. A total of 17.43 lakh RECs were traded in the trading sessions held on 14th May25 and 28th May25, at a clearing price of Rs.345/REC and Rs. 349/REC respectively. REC traded volume in May25 increased by 65% on YoY basis. The next REC trading sessions at the Exchange are scheduled on 11th June25 and 25th June25. IEX is India's premier electricity exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. The company's consolidated net profit rose 21.12% to Rs 117.11 crore on 17.29% increase in net sales to Rs 142.25 crore in Q4 March 2025 over Q4 March 2024. Shares of Indian Energy Exchange (IEX) rose 0.27% to Rs 201.80 on the BSE.
