Indian Energy Exchange shares experienced significant volatility during Friday's trading session, ultimately closing down nearly 7% at ₹139.80 amid clarifications regarding gas futures contracts and developments in the ongoing market coupling case.

Stock Performance and Trading Activity

The stock demonstrated considerable intraday movement, opening higher and reaching a peak of ₹159.80 before surrendering all gains. The decline represented more than an 11% drop from the day's high levels, reflecting investor concerns over recent developments.

Gas Futures Clarification

The stock's decline was triggered partly by IEX's response to BSE's clarification request regarding reports about natural gas futures contract discussions. The exchange sought to distance itself from reports suggesting its involvement in talks with IGX for launching India's first natural gas futures contract.

IEX emphasized in its filing that the news reports were based on information from the National Stock Exchange of India Limited (NSE) and clarified its relationship with India Gas Exchange Limited (IGX):

• IGX is only an associate company of IEX
• IGX operates as a separate legal entity with independent management
• IEX has no role in IGX's day-to-day operations
• The company is not aware of developments reported in the news article

Market Coupling Case Developments

The Electricity Appellate Tribunal (APTEL) has rescheduled the market coupling case hearing to January 19, adding to market uncertainty. During the proceedings, CERC released a circular clarifying that the July 2025 issuance should be regarded as a "direction" rather than an "order."

APTEL sought explanation from CERC regarding the withdrawal of the market coupling order, with CERC's counsel requesting additional time for clarification. The tribunal emphasized that the regulator must function independently and noted it would initiate an enquiry if irregularities were found.

Stock Performance Context

IEX shares are listed on both BSE and NSE, with the stock having touched a 52-week high of ₹215.40 on June 9, 2025, and a 52-week low of ₹130.35 on August 7, 2025. The current trading levels reflect the ongoing regulatory uncertainties affecting the energy exchange sector.

The company's clarification regarding its non-involvement in gas futures discussions and the continued legal proceedings around market coupling norms have created near-term headwinds for the stock, as investors await resolution of these regulatory matters.

Indian Energy Exchange Ltd witnessed dramatic price swings as shares initially surged 7% before crashing 13% from the day's high following developments in the market coupling case. The stock reached ₹160.30 per share during intraday trading, compared to its previous closing price of ₹150.10, before retreating significantly after the Electricity Appellate Tribunal (APTEL) postponed hearings.

Market Coupling Hearing Developments

The volatility stemmed from proceedings at APTEL regarding the market coupling case. Initially, the tribunal's commencement of hearings provided positive momentum for the stock. However, sentiment reversed when APTEL postponed the hearing to January 19 after the Central Electricity Regulatory Commission (CERC) lawyer requested additional time to respond.

At the hearing, APTEL sought clarity on the withdrawal of the coupling order while emphasizing that CERC must function independently. The tribunal warned of a potential enquiry if any irregularities are found in the regulatory process.

Understanding CERC Market Coupling Norms

CERC coupling norms refer to regulations for implementing Market Coupling in India's power exchanges, as directed by CERC in July 2025 under the 2021 Power Market Regulations. The regulatory body plans to implement day-ahead market coupling by January 2026, which would allow different power exchanges to share orders and create uniform market pricing.

Under these norms, Grid India will serve as a backup and develop software for future coupling, with real-time market coupling to be considered later. IEX opposes this implementation as market coupling could significantly reduce its current market share of approximately 85% and shift trading volumes to competing exchanges. The company argues this undermines 17 years of established regulatory framework.

Strong Operational Performance Despite Price Pressures

IEX demonstrated robust operational growth across key metrics for the nine months ended FY26. The company recorded total electricity traded volume of 101.68 BU, representing 14.3% year-on-year growth. The Real-Time Market segment showed particularly strong performance with 38.6% year-on-year growth.

However, average prices declined across segments. The Day-Ahead Market averaged ₹3.85 per unit, down 14.1% year-on-year, while the Real-Time Market averaged ₹3.56 per unit, declining 16.3% year-on-year for the nine-month period.

Quarterly and Monthly Performance Trends

In Q3 FY26, IEX traded 34.08 BU of electricity, achieving 11.9% year-on-year growth. The RTM segment continued its strong momentum with 35.7% year-on-year growth. However, pricing pressures persisted with average DAM prices falling to ₹3.22 per unit, down 13.2% year-on-year, and RTM prices at ₹3.26 per unit, declining 11.6% year-on-year.

December 2025 showed signs of price stabilization with monthly traded volume of 11.44 BU, up 2.8% year-on-year. Average prices demonstrated marginal improvement, with DAM at ₹3.92 per unit, increasing 0.7% year-on-year, and RTM at ₹3.93 per unit, up 2.2% year-on-year.

Financial Performance and Business Model

The company reported revenue growth of 9.34% from ₹139.00 crores in September 2024 to ₹152.00 crores in September 2025. Net profit increased from ₹106.00 crores to ₹122.00 crores during the same period, reflecting operational efficiency despite market challenges.

IEX operates as India's premier energy exchange, providing a nationwide automated trading platform for physical delivery of electricity, renewable energy, and related certificates. The platform facilitates trading in renewable energy certificates and energy saving certificates while ensuring efficient price discovery and enhanced market transparency.