IEX Bloodbath Continues! Stock Down 6% After 30% Crash Post Market Coupling News: What Should Investors Do?

IEX Share Price Today: Shares of Indian Energy Exchange failed to hold their Friday gains and continued to fall on Monday, as investors remained cautious about IEX share price outlook post market coupling news announcement last week.

IEX share price volatility has come after the Central Electricity Regulatory Commission announced the phase-wise implementation of market coupling from next year. IEX shares nosedived around 6% after the stock market opening today. The scrip was trading 4.72% lower at Rs 138.25 per share on BSE on Monday at 9:53 am.

IEX shares closed 9.55% higher at Rs 145.10 per share on BSE on Friday, July 25. Earlier, the stock had crashed nearly 30% during Friday's trading session by touching lower circuit value by more than three times. So far, IEX share price has fallen by nearly 29% last week, which makes investors wonder was Friday's revival a dead cat bounce or a real rebound?

IEX Share Price Recommendation

Last week brought a lots of development that impacted IEX share price movement, including development around market coupling news, or IEX June quarter result for financial year 2025-26.

The company's net profit increased by 25% year-on-year (YoY) to Rs 120.69 crore in the June quarter of the financial year 2025-26 against a profit of Rs 96.44 crore in the year-ago period. IEX's revenue increased by 19% annually to Rs 141.75 crore.

Despite a steady June quarter performance, growth in revenue generation and profit margins, IEX's near term outlook presents a hazy picture because of its lack of clarity around MBED (market base economic dispatch) linked to market coupling, according to analysts. Given the present scenario, brokerages have also reduced their IEX target prices for the near-term.

"We have maintained the margin at Ps4/kwh for trade in the power segment. EPS is revised lower by 8% for FY27E. We have also revised the rating to HOLD (from BUY) with a TP of INR 155 (valued at 25x 1HFY28E EPS) vs. the earlier INR 254 (45x FY27E EPS). We will turn positive once clarity emerges on MBED (market base economic dispatch) which could increase IEX's TAM significantly," noted brokerage Antique.

"We view 'coupling' as a precursor to MBED (page 3), which could raise exchange-traded energy from 8% of generation in FY25 (to 20% by FY33E assumed in our DCF). However, near-term visibility remains hazy. Retain 'REDUCE' with a DCF-based TP of INR133 (from INR173)," stated Nuvama in its report.

What Is Market Coupling?

Market coupling is an economic model which ensures a uniform price for electricity across trading platforms or exchanges. It is widely used in energy markets. Under the new system, power exchanges will take turns acting as the market coupling operator. Grid-India will serve as a backup and audit operator.

Market Coupling's Impact On IEX Performance

IEX enjoys a dominant position in the electricity trading and spot price discovery because it is one of the leading power exchanges in the country. In short, it has a monopoly in the segment. The implementation of market coupling would reduce the transaction cost and give other competitors a chance to compete in the segment.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.