Multi Comm. Exc.

Multi Commodity Exchange reported a strong Q1 FY26, achieving its highest-ever consolidated income of ₹406 crores, representing a 60% year-on-year growth. Profit After Tax (PAT) for the quarter stood at ₹203 crores. The average daily turnover (ADT) reached a robust ₹3,10,000 crores (₹3 trillion), indicating healthy market activity and participation. This performance underscores significant growth and adaptability in a dynamic market environment.

MCX successfully launched a series of new products across various segments during Q1 FY26. These include 10-gram gold futures and options on silver products in the bullion segment. The much-anticipated electricity futures were also introduced, alongside cardamom futures in the agri sector. These innovations aim to broaden risk management tools for stakeholders across diverse industries and enhance market depth.

The company remains highly focused on strengthening its technology and risk framework to support growth. While a database anomaly caused a delay in trading commencement on one day, it was promptly corrected, and management expressed confidence in non-recurrence. Investments in technology will continue, with an emphasis on efficiency, to ensure the platform can support the expanding product portfolio and increasing market participation.

MCX continues to work closely with regulators, members, and associations to further develop the commodity market in India, enhancing price discovery and benchmarking. The Board also approved a 1:5 stock split, reducing the face value from ₹10 to ₹2 per share, with the objective of making the stock more affordable and accessible to a broader range of investors, subject to regulatory approvals.

The reported EBITDA margin for the quarter was around 65%. Management indicated that this margin could face 'a little under pressure' in the coming quarters due to weaker volumes observed in July. Employee expenses and regulatory fees (SGF) were higher, partly due to Q1 over Q4 impact and necessary investments for growth. The effective tax rate for MCX is approximately 20.72%, benefiting from tax-deductible contributions by its subsidiary, MCXCCL.

The launch of electricity futures is considered a significant new product space, tapping into a large Indian market with a stable spot exchange mechanism. Early indications are positive, with a healthy open interest of about 700 lots. Management reported strong feedback from corporates, with nearly 50% of current participation coming from industrial organizations, highlighting the product's relevance for hedging energy costs.