PTC India MD explains HPX’s strategy to gain ground post market coupling – CNBC TV18

India’s plan to introduce market coupling in the power sector could break the Indian Energy Exchange’s (IEX’s) dominance and give newer players like Hindustan Power Exchange (HPX) a real shot at growing their share, according to PTC India Chairman & MD Manoj Kumar Jhawar.

The Central Electricity Regulatory Commission (CERC) approved the implementation of the market coupling norms in a phased manner, starting with the day-ahead market (DAM) from January 2026. This would allow buyers and sellers to access the best available price across all exchanges, instead of being limited to one platform.

Currently, over 99% of the total DAM and real time market (RTM) volumes are traded on IEX, largely because of the high liquidity there.

Also Read: IEX crashes, but PTC confident HPX will reach 33% share after coupling norms

PTC India, which owns 22% in HPX, believes the market coupling will finally allow fair competition across exchanges.

“Now all the three exchanges would have an equal shot and equal opportunity to serve the customer,” said PTC India CMD Manoj Kumar. “Whoever is able to serve the customers better would possibly be able to grab the market share.”

With HPX positioned as a tech-advanced platform and plans to evolve a customer-centric pricing strategy, PTC sees strong revenue and margin potential from the shift, even though customer onboarding and awareness will remain key to scaling up.

Read Here | Stock Crash: IEX shares tank 28% after market coupling approval; 5.1 crore sell orders pending

These are edited excerpts of the interview.

Q: Why do you think this makes sense and what would be your steps from hereon?

A: Number one, it is a very good development because in the collective segment there was practically no competition. Now all the three exchanges would have an equal shot and equal opportunity to serve the customer. Whoever is able to serve the customers better would possibly would be able to grab the market share. Currently, all the volumes were concentrated in the incumbent Exchange, which was IEX. Last year, I think around 61 billion units were traded in the Day Ahead Market (DAM) segment, in the IEX, and now, if a fair share is captured by other exchanges, I believe it will be good for the market, good for the constituents and good for the people whom the exchange is serving.

Q: What is the total quantum of your ownership in HPX? We believe that you are one of the majority holders there. Number two, what is the current market share, especially in the DAM segment where there is going to be immediate implementation as early as January 2026? And by the end of the year, what will be the market share that you will be able to take given the fact that right now, IEX enjoys dominant position?

A: Number one, we own around 22% in the HPX. We collectively own majority holding in the HPX, along with the Bombay Stock Exchange and the ICICI Bank. Our holding is around 22% that is number one. Number two currently, practically all the volume in the collective segment, which is the DAM and real time market (RTM) put together, is being served by IEX almost more than 99%. There are good reasons for that, that if a new buyer or new seller is coming to the market you would like to go where the liquidity is. Since there was no market coupling, no one was able to place any bid on any other exchange, even if you wanted to.

We believe that the one given the chance of coupling now exchanges would have to compete on services and on that we being a very, very new and advanced technology platform, we will be able to get a good market share.

Q: I believe you said you have ownership in HPX. I wanted to confirm with you?

A: Yes.

Q: The current transaction charges at IEX are close to 4 paisa per unit. In fact, it is amongst the highest as far as global power exchanges are concerned. What are the transaction charges you are going ahead and charging your customers? And do you see scope to bring it down further? We believe that will actually help shift away volumes from IEX and going forward, do you feel that there can be a 33% market share each across all of the three exchanges?

A: I believe the exchange which is able to provide services would be able to win the market share that is number one. Definitely, the service charges would be one variable in this equation. We will see what kind of benefits we can pass on to the customers, whether that can be loyalty based, whether that can be transaction based, whether that can be volume based, that has to be seen as strategy would have to be evolved. But this competition would be good for the customers, good for the market.

Read Here | IEX Share Price Crash: Retail shareholding has dropped for five straight quarters but MFs keep buying

Q: What we want to understand is in the current infrastructure that there is do you think competition would be able to provide the service that IEX is doing? Because IEX will be worried about their market share going to the others, they would not focus as much on the service as well. Do you think incentivising one player would have been good for service as against giving it to everyone and as a result of which maybe customers not benefiting, despite the intentions being the same.

A: Monopoly has never been good, it can never be good for the services. Can never be good for the customers. If a monopoly, even if not dictated by law, but because of the reality of the situation, if all the volume is concentrated in one exchange, then you can understand that is the human behaviour. I believe competition is good, and since this market coupling provides a fair chance to compete on services, so I think customers will be benefited. There is no doubt about it.

Q: The other important question, do you have the necessary technology in place to go ahead and allow for the price discovery process? Currently, majority of the volumes are at IEX, so we believe it’s happening over there. So by January 2026, will that be on board for you? Or, in case you don’t, would you be taking the price discovery process, or would that shift to grid India?

A: We are absolutely capable of, HPX is absolutely capable of discounting a price in a collected market. I see absolutely no challenge on that, our platform in the HPX is quite capable of handling anything which is required to be done.

Q: From the point of view of PTC India, where do you believe the revenues of this particular exchange will scale up to as part of your overall consolidated financials. And typically, we understand margins over here are quite high. So consolidated basis at the end of FY27 if you could quantify it for us what kind of contribution you could see?

A: We have to examine that question from two angles. Number one, what were the current margins and the current revenue in the collective segment in the exchanges? So if I say the DAM values were around 61 billion units, so that roughly translate the rate of 4 paisa per unit into ₹240 crore. Now, if I say that all the three exchanges are equipoised to garner the market share, that again, would become a sizable chunk, let us say around ₹80 crore or so. So that would be based on what the market price currently is.

Secondly, currently, HPX was able to contribute only ₹10 crore to total profit. So this would be a huge jump of the PTC consolidated financials, but that remains to be seen as to how much market share this HPX is able to gain.

I would like to highlight that still, although we are trading around 240 million units or so in all segments put together in a short term market, but there is a potential to grow the trade and the market itself in the exchanges. I think a major growth has to come from debt and I think all the three exchanges can survive.

Q: You mentioned that out of the₹240 crore, you did a quick division by three coming to the₹80 crore at this point of time, you have not really accounted for any transaction cost reduction that is number one. We take your point on board saying that volumes have been growing on the short-term market itself. We do see that particular probability play out, but realistically, within the first couple of years, do you see an 8x jump in the contribution, as far as revenues are concerned from HPX?

A: Lot of work is required to be done. Being able to transact is one thing, but reaching out to the customers and making them understand the benefits of this HPX platform is a task. Of course, we have been in touch, and we have pan India relationships with almost all the utilities and all the generators so it is a reasonable assumption that we will be able to get a significant market share.

Q: In terms of operations, suppose there are a buyer and a seller, a buyer at IEX will he be able to sell the same product or the same units on another platform? Is that essentially what market coupling is? Number two, you know, the CERC circular also talks about coupling coming about as far as the RTM market is concerned, what is the kind of opportunity that you see over there?

A: Taking second question first, currently, this DAM segment is around 61 billion units, and the RTM segment, if I remember correctly, would be around 35 billion units. So that is also an important market, and that can also happen in due course of time, whenever coupling is allowed on that. There is a road map, and I need to see how things evolve. So that is the second thing.

Q: What kind of volumes are you expecting in the first year, as soon as this happens for you?

A: It would be reasonable for me to believe that if everyone is competing for the same space, and if services are kind of competitive, then this market would be equipoised and might be divided equally. That would be my starting belief. But then we would like to differentiate ourselves by better connect with customers and better services.

Q: What market share are you targeting? Ideal scenario would be 1/3 – 1/3 – 1/3 but what is it that you are targeting realistically?

A: I would not call it ideal scenario, but I would call it a reasonable scenario. I would like to gather as much as possible.

Q: Realistically speaking what kind of volumes do you think you can get, or what kind of share do you think you can get initially, as things ramp up?

A: I am reasonably confident that this exchange, if it plays its cards right, it should be able to get at least 1/3 share.

Q: By when?

A: Let us say one, one and a half years, maximum two years.

Also Read | IEX share crash: PTC India confident that unit HPX will reach 33% market share after coupling norms