IEX shares rebound 13% after record fall in previous session; here’s why

Recovering from a record fall in the previous session, shares of Indian Energy Exchange (IEX) rebounded nearly 13% on Friday, as investors reacted positively to its June quarter earnings report. On Thursday, IEX shares logged their steepest single-day decline of nearly 30% after the Central Electricity Regulatory Commission (CERC) approved plans to introduce ‘market coupling’ from January 2026.

IEX shares opened 3.4% higher at ₹137 on the BSE, after ending 29.5% lower at ₹132.45 in the previous session. Extending opening gains, the shares of the power trading platform gained as much as 12.83% to ₹149.45, driven by strong buying momentum.

At the time of reporting, IEX shares were up 7% at ₹141.70, while its market capitalisation stood at ₹12,734 crore, with nearly 1 crore shares changing hands over the counter as compared to a two-week average of 8.41 lakh shares.

IEX share price slipped to its 52-week low of ₹131.50 in the previous session, while it touched its 52-week high of ₹244.35 on September 24, 2024. The midcap stock has delivered a negative return of 19% in the past one year, while it declined 13% in the past six months, and 25% in a month.

Q1 profit jumps 25%

For the first quarter ended June 30, 2025, IEX reported consolidated profit after tax of ₹120.7 crore, up 25.2% from ₹96.4 crore in Q1 FY25. Consolidated revenue jumped 19.2% to ₹184.2 crore, from ₹154.5 crore in the same period last year, driven by an increase in volumes.

On the operational front, electricity volumes reached 32.4 billion units (BUs) during the quarter, registering a growth of 14.9% YoY. Besides, the company saw significant growth in the Renewable Energy Certificates (REC) market, with 52.7 lakh RECs traded in Q1 FY26, a jump of 149.3% YoY.

For the first quarter of FY26, International Carbon Exchange (ICX), a wholly owned subsidiary, issued over 44 lakh I-RECs compared with 59 lakh I-RECs issued in the last financial year. Revenue for ICX in Q1 FY26 stood at ₹1.79 crore.

Market coupling woes weigh on IEX shares

The strong quarterly performance comes a day after IEX shares suffered their biggest single-day fall of nearly 30%, after the CERC approval to implement market coupling starting January 2026. Investors turned jittery amid concerns that the move would lead to the company losing a key competitive edge.

Market coupling is a mechanism aimed at creating a single, uniform price for electricity across different power exchanges by aggregating bids and offers and clearing them centrally. Currently, power exchanges — Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX) — handle bids independently, resulting in varying electricity prices or Market Clearing Prices (MCPs) across platforms.

As per the order, the Day-Ahead Market (DAM) across power exchanges will be coupled in a round-robin mode by January 2026, where power exchanges will rotate as Market Coupling Operators (MCOs). Grid-India will serve as the fourth MCO for backup and audit purposes.

Additionally, the Commission has directed further exploration of market coupling in other segments, such as the Real-Time Market (RTM) and Term-Ahead Market (TAM), through shadow pilots and regulatory consultations. This marks a key regulatory shift in the Day-Ahead Market mechanism.

Analysts believe that the market coupling could significantly impact its revenue, as the move will have a direct impact on transaction income, which accounts for more than 70% of the total income in Q1 FY26.

Meanwhile, IEX, in an exchange filing, said it is currently undertaking a detailed impact assessment of the implications of this regulatory change and will keep the stakeholders informed of any further developments.

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