Indian Energy Exchange shares plunge 15% amid fears over market coupling reforms
Shares of Indian Energy Exchange Ltd (IEX) tumbled as much as 15% on Thursday, marking their worst intraday performance since the company's listing in 2017. The sharp decline comes as investors brace for potential disruption from the Indian power regulator’s upcoming electricity pricing overhaul.
IEX, the country’s leading platform for spot electricity price discovery, is expected to face increased competition with the introduction of market coupling, a reform set to roll out in phases starting January 2026, News.Az reports, citing Reuters.
Market coupling is a pricing mechanism designed to create a uniform electricity price across all power exchanges. Under the proposed changes, multiple exchanges — not just IEX — would act as market couplers, thereby diluting IEX's long-standing central role.
Analysts warn that the move could lead to a significant erosion of IEX’s market share and competitive advantage.
“The order is worse than what we had built into our assumptions,” noted Bernstein analysts in a report, adding that IEX’s market dominance is likely to come under pressure.
The brokerage cut its target price for IEX stock from ₹160 to ₹122 to reflect the full impact of market coupling. Bernstein maintained a “market perform” rating on the stock.
Thursday’s slump puts IEX on track for its seventh straight session of losses, as investor confidence weakens amid regulatory uncertainty. As of 10:19 AM local time, IEX shares were trading at ₹159.70, down 15%.
According to data compiled by LSEG, the stock currently holds a median analyst target price of ₹215 with most brokerages maintaining a “buy” rating — although those positions may soon be reassessed if the proposed reforms advance without modification.
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