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IEX stock: Indian Energy Exchange shares to be in focus today. Here's why

IEX stock: Indian Energy Exchange shares to be in focus today. Here's why

India Today25-07-2025
Shares of Indian Energy Exchange (IEX) are likely to remain in focus today, a day after the company posted it's April–June quarter results and also faced a sharp fall in its stock price due to a regulatory development.IEX reported a standalone net profit of Rs 113 crore for the first quarter of the financial year 2026. This is a 21% increase from Rs 93 crore reported in the same quarter last year. Revenue from operations rose 13% on-year to Rs 140 crore, up from Rs 124 crore in Q1 FY25. Expenses for the quarter also increased by 9% to Rs 32 crore.During the June quarter, IEX saw a 15% rise in electricity volumes, reporting a total of 32.4 billion units (BUs). It also recorded a 149% year-on-year jump in the trading of Renewable Energy Certificates (RECs), with volumes at 52.7 lakh units.The company said that India's peak power demand this summer touched 242 gigawatts (GW) on June 12. Though an even higher demand of 277 GW was expected due to forecasts of an intense summer, early monsoon and unseasonal rains helped bring temperatures down, reducing the overall demand.According to the company, fuel availability remained stable and affordable. India's coal production continued without major disruption. With increased hydro and wind generation and steady coal-based supply, power supply liquidity improved on exchanges, helping keep prices low.In the Day Ahead Market (DAM), supply liquidity grew by 45.2% on a year-on-year basis. As a result, the average price in the DAM segment dropped to Rs 4.41 per unit in Q1 FY26, down by nearly 16% from last year. Similarly, the Real-Time Market (RTM) saw an average price of Rs 3.91 per unit, marking a 20% year-on-year decline.However, despite the strong operational and financial performance, IEX shares fell sharply on Thursday, July 24. The stock dropped as much as 28% and touched a 52-week low of Rs 135.26 on the BSE. This fall came after the Central Electricity Regulatory Commission (CERC) issued a formal order announcing the start of market coupling in India's power market.According to the CERC, market coupling will be implemented in phases. The first phase, scheduled for January 2026, will involve coupling the Day-Ahead Market operated by different power exchanges using a round-robin model.Market coupling is expected to centralise the price discovery process across all exchanges, which could impact IEX's dominance in the sector. Investors reacted negatively to this announcement, as it raises concerns about future competition and pricing power for IEX.With both regulatory changes and quarterly earnings now in the spotlight, the IEX stock will remain under watch in the coming days.- Ends
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