Indian Energy Exchange estimates cut as regulatory price reform looms

Shares in Indian Energy Exchange Ltd. (NSE: IEX) slumped 30% on July 24— the steepest one-day fall in the company’s history — after regulators announced plans to unify pricing across the country’s power bourses.

The Central Electricity Regulatory Commission has ordered that day-ahead markets be coupled from January 2026, a move aimed at eliminating tariff discrepancies between India’s three power trading exchanges: IEX, Power Exchange India and Hindustan Power Exchange. Currently, IEX dominates the day-ahead markets and often benefits from price differences in the bidding process. Analysts expect the reforms to erode IEX’s competitive advantage and compress margins.

Following the announcement, consensus forecasts for IEX’s revenues and profits have been sharply downgraded. Consensus forecasts for standalone revenues in fiscal 2026 have been cut to ₹6 billion, 14% lower than previous estimates, with a projected 11% year-on-year decline. Expectations for 2027 have been lowered even more sharply, by 24% to ₹5.7 billion, from earlier forecasts of ₹7 billion.

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