Synopsis: The shares of Indian Energy Exchange Ltd surged 7% after the Electricity Appellate Tribunal (APTEL) began hearings on the market coupling case. APTEL sought clarification regarding the withdrawal of the coupling order, while the CERC lawyer requested additional time to respond.
The shares of the Small-Cap stock, which specialises in providing a nationwide, automated trading platform for the physical delivery of electricity, renewable energy, and related certificates in India, have been in the spotlight following a 7 percent surge in the stock but later falling down. In this article, let’s explore the reason for the rally.
With a market capitalisation of Rs. 13,134.06 crores on Friday, the shares of Indian Energy Exchange Ltd rose upto 6.7 percent, reaching a high of Rs. 160.30 per share compared to its previous closing price of Rs. 150.10 per share.
What happened
Indian Energy Exchange Ltd, engaged in providing a nationwide, automated trading platform for the physical delivery of electricity, renewable energy, and related certificates in India, has been in the spotlight as they have rallied upto 7 percent in the intraday trade and then later, after postponing the hearing to January 19, it fell down upto 13 percent from the day’s high.
At the hearing, APTEL sought clarity on the withdrawal of the coupling order, but the CERC lawyer requested more time to respond. The tribunal emphasized that CERC must function independently and warned of a potential enquiry if any irregularities are found.
Then, after the rise, the stock slipped again following an update on the coupling case, as the APTEL postponed the hearing on market coupling norms to January 19. The Central Electricity Regulatory Commission (CERC) lawyer told the tribunal that market coupling will be implemented only through regulation.
CERC Market Coupling Norms:
CERC coupling norms refer to the regulations for implementing Market Coupling in India’s power exchanges, as directed by CERC in July 2025 under the 2021 Power Market Regulations.
CERC plans to implement the day-ahead market (DAM) coupling by January 2026. This means different power exchanges share orders to create a uniform market price. Grid India will act as a backup and develop software for future coupling, and the real-time market coupling will be considered later.
Why IEX Opposes It: Market coupling could reduce IEX’s market share (currently ~85%), and shift volumes to other exchanges. The IEX argues this undermines 17 years of regulatory framework.
Financials & Others
The company’s revenue rose by 9.34 percent from Rs. 139 crore in September 2024 to Rs. 152 crore in September 2025. Meanwhile, the Net profit rose from Rs. 106 crore to Rs. 122 crore during the same period.
IEX is India’s premier energy exchange, offering a nationwide, automated trading platform for the physical delivery of electricity, renewable energy, and certificates. This includes renewable energy certificates (RECs) and energy saving certificates (ESCerts). The platform ensures efficient price discovery and improves accessibility and transparency in India’s energy market. It also enhances the speed and efficiency of trade execution.
For the nine months ended FY’26, IEX recorded a total electricity traded volume of 101.68 BU, marking a 14.3 percent year-on-year growth. The Real-Time Market (RTM) segment saw an even stronger growth of 38.6 percent YoY.
However, average prices declined, with the Day-Ahead Market (DAM) at Rs. 3.85/unit, down 14.1percent YoY, and the RTM at Rs. 3.56/unit, down 16.3 percent YoY.
In Q3 FY’26, IEX traded 34.08 BU of electricity, achieving an 11.9 percent YoY increase, while the RTM segment grew 35.7 percent YoY. Average DAM prices fell to Rs. 3.22/unit, down 13.2 percent YoY, and RTM prices were Rs. 3.26/unit, down 11.6 percent YoY, reflecting a continued softening of market prices during the quarter.
For December 2025, IEX posted a monthly traded volume of 11.44 BU, up 2.8 percent YoY, with the RTM seeing 20.5 percent YoY growth. Average prices, however, showed a marginal increase, with DAM at Rs. 3.92/unit (+0.7% YoY) and RTM at Rs. 3.93/unit (+2.2% YoY), indicating a slight recovery in pricing for the month.
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