Prabhudas Lilladher Recommends 'Hold' on IEX with Target Price of Rs 135

• Indian Energy Exchange (IEX) reported steady 3QFY26 performance, with overall volumes up 9% YoY, driven by a 12% rise in power volumes.
• Power volumes grew despite a 1% YoY decline in national power demand, supported by softer short-term power prices.
• IEX benefits from a strong balance sheet (Rs 15 billion cash in Q3FY26) and high Return on Equity (40%).
• The proposed market coupling mechanism poses a significant risk to IEX's near-monopoly in the Day-Ahead Market (DAM) segment.
• Prabhudas Lilladher maintains a 'Hold' rating on IEX with a target price of Rs 135, based on 20x FY28E EPS, citing moderated volume growth outlook.

Why It Matters: Prabhudas Lilladher advises 'Hold' on IEX at Rs 135 target due to market coupling risks and moderated growth.