IEX stock in focus after APTEL postpones hearing on CERC market coupling plea

Synopsis:
The shares of the company were in the news today as the hearing that was supposed to be held today by APTEL regarding the petition against CERC got postponed to November 28 by APTEL.

Market leader stock that provides an automated platform and infrastructure for carrying out trading in electricity units for physical delivery of electricity, had its shares in the spotlight as today was the hearing of the plea regarding the market coupling norms held by the Electricity Appellate Tribunal (APTEL), which got deferred.

With the market cap of  12,904.89 crore ,the shares gave a closing price of Rs 143.6  and made a low of Rs 140  compared to its previous day closing price of Rs  148.4 which is more than 5 percent fall percent in today’s trading session. The shares have given a return of 120 percent over the last 5 years.

About the hearing

On 30 October, i.e. today, the Electricity Appellate Tribunal (APTEL) was supposed to hear the plea of  IEX regarding the market coupling norms that were brought up by the Central Electricity Regulatory Commission (CERC).  But the members of the tribunal recused themselves from hearing IEX’s plea against the CERC order, and the company now awaits its next hearing on 28 November.

In the month of July, IEX experienced a fall in its share price as CERC approved market coupling implementation, which is scheduled for January 2026. IEX, against this decision, filed a plea with the Electricity Appellate Tribunal (APTEL) 

The Appellate Tribunal requested that IEX submit an amended plea during the October 13 hearing, including more parties as respondents.Grid Corporation of India, which oversaw the market coupling pilot studies and test runs, as well as IEX’s rivals Power Exchange of India and Hindustan Power Exchange, have been added as new parties to the case.

New parties were invited to submit their responses prior to today’s hearing, and the Tribunal had requested that IEX submit an amended plea within a week of October 13.

The IEX petition states that the CERC order is arbitrary and it  infringes on the principles of natural justice. It further argues that the coupling order will result in a decline of market share, offering no identifiable advantages. IEX also stated in its petition that the CERC order undermines the regulatory framework that has developed over the past 17 years.

Financials and others

The Revenue from operations stands at  Rs 140 crore in Q1 FY26 compared to Q1 FY25 Rs 124  crore which is an increase  of 13  percent YoY basis . Similarly, the net profit stood at Rs 113  crore in Q1 FY26 from Rs 93 crore in Q1 FY25 which is an increase of 21%. The shares are trading at 29.6 PE but have a median PE of 43.4.

IEX has been at the forefront of adopting new technologies  and has been successful in innovating  an  electronic trading of electricity. Its  technology vision is to utilise next-generation technology to architect Software as a Service (SaaS) solutions that enable them  to operate competitive, transparent, and robust power markets in the country. 

IEX’s platform is engineered for high performance, with a focus on speed, reliability, scalability, security, and availability. Designed to handle increasing user demand, their scalable architecture ensures a seamless customer experience across all touchpoints.

Written by Leon Mendonca

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