Archive · 31 Jul 2025
JM Financial: IEX Market Coupling Rollout Delayed to 2027, Hold on Shares
The Indian government wants to change how electricity is bought and sold, called "market coupling."
This is supposed to make prices more stable.
A financial company, JM Financial, thinks the plan to start by January 2026 is too fast and predicts it won't start until December 2027.
They say this change needs upgrades and new rules.
While this is happening, IEX, a big player in the current electricity market, might see its share shrink.
JM Financial suggests investors "hold" their IEX shares, expecting a price of about Rs 149.
JM Financial believes the January 2026 market coupling target is ambitious and expects rollout by December 2027.
Market coupling implementation requires software upgrades and infrastructure modifications.
JM Financial notes that benefits of market coupling are not explicitly evident in the Indian context.
IEX's market share in the Day Ahead Market (DAM) is expected to decrease gradually.
JM Financial recommends a Hold on IEX shares with a target price of Rs 149.
- Who
- JM Financial and IEX.
- What
- Implementation of market coupling in the Day Ahead Market for electricity.
- When
- JM Financial sees implementation of market coupling by December 2027.
- Where
- In the Indian electricity market.
- Why
- To address price volatility and introduce new trading mechanisms.
JM Financial View
Industry View
Implementation Timeline
JM Financial View
Market coupling rollout by December 2027.
Industry View
Unknown.
Benefits of Coupling
JM Financial View
Anticipated benefits of market coupling are not explicitly evident in the Indian context.
Industry View
Unknown.
Market Share Impact
JM Financial View
IEX's market share to gradually taper.
Industry View
Unknown.
- Brokerage Recommendation
- Hold
- Target Price
- Rs 149
- IEX Market Share (DAM)
- 75% in FY28, 60% in FY30 (estimated)
- Q1FY26 Volume (IEX)
- 32.4 BU
- Q1FY26 DAM Price (IEX)
- Rs 4.41/unit