MCX - Multi Comm. Exc.

📊 NSE: MCX 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 10:07

💰 Financial Performance

Revenue Growth by Segment

Standalone income from operations grew 51% YoY in H1 FY26 to INR 700.83 Cr. Bullion Average Daily Turnover (ADT) reached 233,518 units in Q2 FY26, while Base Metals volume totaled 94,036 units for the July-Sept period.

Geographic Revenue Split

100% of revenue is derived from domestic operations in India. The company is exploring international consultancy, such as the agreement with CSE to establish Bangladesh’s first commodity exchange.

Profitability Margins

Consolidated Net Profit Margin improved from 47% in H1 FY25 to 50% in H1 FY26. Standalone Net Profit Margin rose from 38% to 41% in the same period, driven by operational leverage on the new technology platform.

EBITDA Margin

Consolidated EBITDA margin stood at 67% in H1 FY26, a significant improvement from 63% in H1 FY25, reflecting a 4 percentage point increase in core profitability.

Capital Expenditure

Not explicitly disclosed in INR Cr, but the company is heavily investing in 'enhancing technology infrastructure' following the go-live of its new Commodity Derivatives Platform on October 16, 2023.

⚙️ Operational Drivers

Raw Materials

As a service-based exchange, primary operational inputs are Employee Benefits (9.6% of total income) and C&S charges/Product License fees (16.3% of total income).

Import Sources

Not applicable for an exchange; however, technology services were previously sourced from an external 'erstwhile technology vendor'.

Key Suppliers

Key service providers include 10 empaneled clearing banks for funds settlement and various technology infrastructure vendors.

Capacity Expansion

Current capacity includes 555 Members and 3.67 crore UCC as of September 30, 2025. Expansion is focused on product depth, including new weekly options and sectoral indices.

Raw Material Costs

Employee benefits expense rose 41% YoY to INR 72.95 Cr in H1 FY26. C&S charges and product license fees increased 44% YoY to INR 123.75 Cr, tracking volume growth.

Manufacturing Efficiency

Operational efficiency is measured by Average Daily Turnover (ADT); Bullion ADT grew to 233,518 in Q2 FY26.

Logistics & Distribution

Not applicable for exchange operations.

📈 Strategic Growth

Expected Growth Rate

49%

Growth Strategy

Growth will be achieved by expanding the product suite (Weekly Silver options, Cardamom, Nickel), increasing institutional participation (MFs, PMS, FPIs), and leveraging the new Commodity Derivatives Platform to reduce long-term tech costs.

Products & Services

Futures and Options contracts on Bullion (Gold, Silver), Energy (Crude Oil, Natural Gas), Base Metals (Copper, Zinc, Aluminium, Lead), and Agri commodities.

Brand Portfolio

MCX, MCXCCL, MCX BULLDEX, iComdex.

New Products/Services

Launched Weekly options on Silver (30kg and 5kg) and MCX BULLDEX in October 2025; these are expected to drive higher retail participation and transaction volume.

Market Expansion

Targeting GIFT City through IIBX and international consultancy in Bangladesh to diversify revenue streams beyond domestic trading fees.

Market Share & Ranking

India's first listed exchange and dominant leader in the commodity derivatives segment.

Strategic Alliances

Licensing agreements with LME, IEX, and NYMEX (CME Group); consultancy agreement with CSE (Bangladesh).

🌍 External Factors

Industry Trends

The industry is evolving from a nascent stage (22 years old) toward maturity, with a significant shift from futures to options trading and increased institutional entry (FPIs/MFs).

Competitive Landscape

Primary competitors include NCDEX (Agri) and equity exchanges (NSE/BSE) that have entered the commodity derivatives space.

Competitive Moat

Moat is sustained by network effects (555 members), high liquidity in benchmark contracts, and a robust clearing corporation (MCXCCL) with a INR 1,033.87 Cr SGF.

Macro Economic Sensitivity

Highly sensitive to global commodity price volatility and inflation, which drive hedging demand and trading volumes.

Consumer Behavior

Retail investors are increasingly shifting toward index options, mirroring trends seen in the equity markets.

Geopolitical Risks

Geopolitical tensions impacting global supply chains for energy and metals directly influence MCX trading volumes due to increased price volatility.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 (dividend timelines) and FEMA 120 (overseas investments).

Environmental Compliance

Not applicable for exchange operations.

Legal Contingencies

Paid a compounding fee of INR 4,50,000 to RBI for FEMA contravention and an ROC penalty of INR 11,000 for a one-day delay in dividend deposit.

⚠️ Risk Analysis

Key Uncertainties

Technology platform stability remains a key risk; the Oct 2025 glitch highlights potential for 5-10% impact on quarterly operational uptime if recurring.