Detailed Narrative
Q2 FY26 Performance Overview
MCX delivered strong financial results in Q2 FY26, with consolidated total revenue reaching INR401 crores, marking a 29% year-over-year growth. EBITDA increased by 32% to INR270 crores, and profit after tax also grew by 29% to INR197 crores. The Average Daily Turnover (ADT) demonstrated robust market activity, rising to INR4.11 lakh crores from INR2.02 lakh crores in the previous year, indicating healthy participation across stakeholders.
Technical Incident and Resolution
On October 28, 2025, MCX experienced a technical issue that delayed trading until 1:25 p.m. after shifting to a disaster recovery site. The root cause was identified as a predefined parameter limit in gateway services related to reference data like Unique Client Codes (UCCs). Management confirmed that the issue has been resolved on both the main data center and the DR site, and trading has since returned to the main site. Steps have been taken to prevent similar occurrences, and the exchange systems are deemed well-positioned to support future market volumes.
Product Launches and Market Development
MCX continued its focus on product innovation, launching new variants in the bullion sector, including monthly options on silver (30 kg main contract and 5 kg mini contract). Fresh future contracts were also introduced for cardamom and Nickel. Additionally, the MCX BULLDEX index options were launched in October, which management views optimistically, expecting organic growth despite FPIs not being allowed to participate as the underlying is not cash-settled.
Base Metals Strategy
The company is actively consolidating delivery centers for base metals in a phased manner to enhance market efficiency. Nickel contracts are now supported by a single warehouse, and Copper will follow suit from the December contract. Other metals like Aluminium and Zinc have also seen consolidation, with the strategy based on market feedback and participant requirements. Management is hopeful that these changes, starting with Copper as a test case, will improve traction and volumes in the base metals segment.
Bullion Market Dynamics and Margins
The bullion options segment has seen increased participation and volumes, attributed to a combination of factors including market volatility🌐, heightened interest, and the shift to monthly expiry contracts. During October 2025, margin requirements for gold and silver F&O contracts were increased in two phases due to unexpected backwardation and market volatility🌐, particularly during the pre-Diwali festive season. Management stated these actions helped maintain control and will be rationalized at a suitable time as the macro environment stabilizes.
Institutional Participation and New Members
MCX is observing growing domestic participation, particularly from mutual funds and Alternative Investment Funds (AIFs), with PMS being an area for further focus. The exchange has added 17 new members this year and has a healthy pipeline of prospective members, indicating strong interest in commodity participation. The increasing number of mutual funds opening multi-asset fund schemes is also seen as a positive development, enabling commodities to be a part of broader fund portfolios.
Technology Investments
MCX is committed to continuous investment in its technology infrastructure to support anticipated growth and market volumes. Management emphasized that technology is not a static platform and requires ongoing upgrades to ensure capacity and efficiency. While a recent technical glitch occurred, it was attributed to a specific parameter issue, and the trading platform itself has been stable. Planned investments are already accounted for, and no significant additional capex is expected beyond current plans.