Latest news with #RupeshSankhe
Time of India
25-07-2025
- Business
- Time of India
IEX shares rebound 13% after record plunge; stock stays in F&O ban. What should investors do?
Q1 results offer relief Live Events Market dominance under scrutiny F&O ban limits trading (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Indian Energy Exchange (IEX) rebounded sharply on Friday, July 25, surging as much as 12.8% to Rs 149.45 on the BSE, a day after suffering their steepest single-day decline on record. The stock remains under the Futures and Options (F&O) ban even as strong quarterly earnings offered some respite to Thursday, July 24, IEX shares plunged nearly 30% to a 52-week low after the Central Electricity Regulatory Commission (CERC) approved market coupling , a regulatory change that has long been viewed as a structural threat to the company's dominance in power sell-off triggered massive trading volumes, with 12.77 crore shares worth Rs 1,740 crore changing hands, surpassing the combined volumes of all 16 previous trading sessions in July. Over 43.75% of the shares traded on the NSE were marked for delivery, indicating heavy investor activity had intensified in the days leading up to the announcement. Volumes over the three sessions prior to Thursday stood at 78 lakh, 97 lakh and 92 lakh, compared to a 10-day average of 61 rebound on Friday followed the company's Q1FY26 results , released after market hours on Thursday. IEX reported a 25% year-on-year (YoY) increase in consolidated net profit to Rs 120 crore, compared to Rs 96 crore a year earlier. Revenue for the quarter climbed 19% YoY to Rs 184.2 crore, driven by robust trading volumes on the exchange rose 14.9% YoY to 32.4 billion units in Q1FY26. Renewable Energy Certificates (RECs) surged 149.3% YoY to 52.7 lakh units.'The company is currently undertaking a detailed impact assessment of the implications of [market coupling] and will keep stakeholders informed of any further developments,' IEX said in its post-results commands over 90% market share in the Day-Ahead Market (DAM) and Real-Time Market (RTM), both of which are key revenue drivers. However, centralized price discovery under market coupling could erode this advantage."Market coupling has been a persistent overhang for IEX, and with CERC's recent approval for its implementation, we expect a sharp decline in the company's market share, resulting in a loss of its dominant position in the DAM and RTM segments," said Rupesh Sankhe, vice president and power sector analyst at Elara SecuritiesTo retain volume amid rising competition, IEX may be compelled to lower trading margin, further weighing on earnings, said Sankhe.'While regulators aim to improve efficiency and transparency, investors fear revenue erosion and reduced platform stickiness. With the core business model under pressure and limited clarity on long-term profitability, markets have rightly reacted. For IEX, the days of monopoly-like pricing power may now be history,' said Harshal Dasani, Business Head at INVasset, stock was placed under the F&O ban on Thursday after open interest in its derivatives contracts breached 95% of the Market-Wide Position Limit (MWPL) on the NSE. Under this framework, no new positions can be created in F&O contracts, though existing ones can be squared off. The mechanism is designed to curb speculative build-up and prevent market of the F&O ban can attract penalties under Sebi norms, ranging from 1% of the position value (minimum Rs 5,000) up to Rs 1 lakh, along with potential trading suspensions.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
25-07-2025
- Business
- Economic Times
IEX shares plummet 30% amid 'market coupling' concerns
Indian Energy Exchange shares experienced a significant drop. This decline followed the Central Electricity Regulatory Commission's decision. The commission plans to implement 'market coupling'. This move is expected to impact IEX's revenue streams. Market coupling aims to unify power prices. Hindustan Power Exchange and Power Exchange India may benefit. IEX's market share could potentially decrease as a result. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Shares of the Indian Energy Exchange (IEX) dropped 30% on Thursday, the biggest ever single-day fall, as the Central Electricity Regulatory Commission's move to implement ' market coupling ' is seen squeezing its revenues Market coupling is aimed at unifying power prices, resulting in improvement of power trade efficiency but this is seen hurting IEX."Historically, market participants turned to IEX for price discovery. But, after this, transactions will be distributed among three exchanges and grid India on a rotational basis," said Rupesh Sankhe, power sector analyst at Elara Securities. "If competing exchanges lower transaction fees, IEX's volumes could decline further." IEX shares ended 27.9% lower at ₹132.32 on Thursday. While IEX may lose market share, other two exchanges, Hindustan Power Exchange (HPX) and Power Exchange India (PXIL) may of Power Exchange India (PXIL) went up by about Rs 30 to Rs 575 in the unlisted market on Thursday, post the announcement, as per data from 'We anticipate a significant impact on IEX's profitability following the implementation of market coupling from next year,' said Sneha Poddar, associate vice president, equity research at Motilal Oswal Financial Services . 'DAM (day ahead market), which currently accounts for nearly 50% of IEX's volumes, may see reduced activity as a result. This could also weaken the company's pricing power.'Sankhe said that out of the total 140 billion units traded on power exchanges, the day ahead market and real time market (RTM) together account for approximately 114 billion units. 'This shift could impact IEX's revenue by 25-40% cut in FY27 assuming market coupling also gets implemented for real time market products and exchange margins cut,' he the decline on Thursday, the stock had gained 3.4% in 2025 in line with the performance of the BSE 500 index. Poddar said that given the current uncertainty, she recommends existing investors consider exiting the stock. 'New investors should wait for greater clarity on how these changes may affect the company's revenue,' she said.
Time of India
25-07-2025
- Business
- Time of India
IEX shares plummet 30% amid 'market coupling' concerns
Mumbai: Shares of the Indian Energy Exchange (IEX) dropped 30% on Thursday, the biggest ever single-day fall, as the Central Electricity Regulatory Commission's move to implement ' market coupling ' is seen squeezing its revenues . Market coupling is aimed at unifying power prices, resulting in improvement of power trade efficiency but this is seen hurting IEX. Explore courses from Top Institutes in Please select course: Select a Course Category Others PGDM MBA Cybersecurity others CXO Technology healthcare MCA Management Project Management Artificial Intelligence Leadership Finance Data Analytics Design Thinking Data Science Data Science Product Management Healthcare Operations Management Public Policy Degree Digital Marketing Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "Historically, market participants turned to IEX for price discovery. But, after this, transactions will be distributed among three exchanges and grid India on a rotational basis," said Rupesh Sankhe, power sector analyst at Elara Securities. "If competing exchanges lower transaction fees, IEX's volumes could decline further." IEX shares ended 27.9% lower at ₹132.32 on Thursday. While IEX may lose market share, other two exchanges, Hindustan Power Exchange (HPX) and Power Exchange India (PXIL) may gain. Shares of Power Exchange India (PXIL) went up by about Rs 30 to Rs 575 in the unlisted market on Thursday, post the announcement, as per data from 'We anticipate a significant impact on IEX's profitability following the implementation of market coupling from next year,' said Sneha Poddar, associate vice president, equity research at Motilal Oswal Financial Services . 'DAM (day ahead market), which currently accounts for nearly 50% of IEX's volumes, may see reduced activity as a result. This could also weaken the company's pricing power.' Sankhe said that out of the total 140 billion units traded on power exchanges, the day ahead market and real time market (RTM) together account for approximately 114 billion units. 'This shift could impact IEX's revenue by 25-40% cut in FY27 assuming market coupling also gets implemented for real time market products and exchange margins cut,' he said. Live Events Before the decline on Thursday, the stock had gained 3.4% in 2025 in line with the performance of the BSE 500 index. Poddar said that given the current uncertainty, she recommends existing investors consider exiting the stock. 'New investors should wait for greater clarity on how these changes may affect the company's revenue,' she said.
Deccan Herald
10-06-2025
- Business
- Deccan Herald
India's swelling coal stockpiles test state-owned mining giant Coal India
By Rajesh Kumar SinghRecent rains may have provided the world's most populous nation some relief from scorching summer heat, but they shattered state-owned mining giant Coal India Ltd.'s hopes of denting record-high early onset of monsoon rains and frequent showers in parts of the country have kept India's electricity demand in check and coal stockpiles high. Combined with increased competition from cleaner sources of electricity, as well as other miners, Coal India is unlikely to return to the massive profit margins it enjoyed just a few years ago. 'Coal India's growth window is narrowing,' said Rupesh Sankhe, senior vice president for research at Elara capital India Pvt Ltd. 'With more and more renewable energy coming on stream, energy storage projects coming up and a renewed push for nuclear, demand for coal will increasingly be under pressure.'.The Kolkata-based miner has been sitting on an unsold inventory of more than 100 million tons since the start of the fiscal year in April. Meanwhile, coal stockpiles at power stations, the company's biggest customers, are up almost a third from a year earlier at more than 58 million tons, the highest level in records going back 17 Motor has a rare earths stockpile that can last about a year, source reduces the premiums Coal India can charge in auctions — a key driver of its earnings. In 2022, when a post-pandemic rebound in the economy led to coal shortages, customers paid premiums of more than 300 per cent above baseline prices. That margin has fallen to 43 per cent and could potentially slip to 30 per cent, Marketing Director Mukesh Choudhary said on an investor call last month. Soft demand and ample supply is weighing on the outlook. India's coal-fired generation fell 6 per cent from a year earlier in the first two months of this fiscal year. Meanwhile, peak electricity consumption this year is still more than 10 per cent short of a projection in February, and more than 5 per cent below last year's maximum. Unless heat waves this month push power use drastically higher, it would be the first annual decline in at least two decades. Meanwhile, a raft of players are mining the fuel to run their own plants as well as pushing some of their production into the market. NTPC Ltd., India's largest power producer and coal user, is seeking to almost double its own production to 50 million tons this fiscal year. The company has also sought to source more fuel from non-state companies. Those producers are grabbing an increasing portion of the nation's coal output. They mined 198 million tons in the year through March, or about a fifth of the total. That will weigh on Coal India's sales. While Sankhe expects the miner's volumes to rise as much as 5 per cent annually for the next three to four years, he forecasts a decline thereafter. The company's profit has peaked, since the increased competition will weigh on auction prices and offset the higher volumes, he said.
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Business Standard
10-06-2025
- Business
- Business Standard
India's swelling coal stockpiles test state-owned mining giant CIL
Recent rains may have provided the world's most populous nation some relief from scorching summer heat, but they shattered state-owned mining giant Coal India Ltd.'s hopes of denting record-high inventories. The early onset of monsoon rains and frequent showers in parts of the country have kept India's electricity demand in check and coal stockpiles high. Combined with increased competition from cleaner sources of electricity, as well as other miners, Coal India is unlikely to return to the massive profit margins it enjoyed just a few years ago. 'Coal India's growth window is narrowing,' said Rupesh Sankhe, senior vice president for research at Elara capital India Pvt Ltd. 'With more and more renewable energy coming on stream, energy storage projects coming up and a renewed push for nuclear, demand for coal will increasingly be under pressure.' The Kolkata-based miner has been sitting on an unsold inventory of more than 100 million tons since the start of the fiscal year in April. Meanwhile, coal stockpiles at power stations, the company's biggest customers, are up almost a third from a year earlier at more than 58 million tons, the highest level in records going back 17 years. That reduces the premiums Coal India can charge in auctions — a key driver of its earnings. In 2022, when a post-pandemic rebound in the economy led to coal shortages, customers paid premiums of more than 300 per cent above baseline prices. That margin has fallen to 43 per cent and could potentially slip to 30 per cent, Marketing Director Mukesh Choudhary said on an investor call last month. Soft demand and ample supply is weighing on the outlook. India's coal-fired generation fell 6 per cent from a year earlier in the first two months of this fiscal year. Meanwhile, peak electricity consumption this year is still more than 10 per cent short of a projection in February, and more than 5 per cent below last year's maximum. Unless heat waves this month push power use drastically higher, it would be the first annual decline in at least two decades. Meanwhile, a raft of players are mining the fuel to run their own plants as well as pushing some of their production into the market. NTPC Ltd., India's largest power producer and coal user, is seeking to almost double its own production to 50 million tons this fiscal year. The company has also sought to source more fuel from non-state companies. Those producers are grabbing an increasing portion of the nation's coal output. They mined 198 million tons in the year through March, or about a fifth of the total. That will weigh on Coal India's sales. While Sankhe expects the miner's volumes to rise as much as 5 per cent annually for the next three to four years, he forecasts a decline thereafter. The company's profit has peaked, since the increased competition will weigh on auction prices and offset the higher volumes, he said.
