Multi Commodity Exchange of India Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Multi Commodity Exchange of India (MCX) reported strong Q2 FY26 results with consolidated revenue growing 29% to INR401 crores, EBITDA up 32% to INR270 crores, and PAT increasing 29% to INR197 crores. Average Daily Turnover (ADT) more than doubled to INR4.11 lakh crores, reflecting healthy market activity. The company successfully launched new bullion variants and the MCX BULLDEX, while also addressing a technical issue that occurred in October, assuring steps have been taken to prevent recurrence and maintaining focus on technology infrastructure and market participation.

Highlights

  • Consolidated total revenue stood at INR401 crores, which is a growth of 29% over same quarter last year.

  • EBITDA increased to INR270 crores by 32% and profit after tax grew also by 29% to INR197 crores.

  • Average Daily Turnover (ADT) has risen to INR4.11 lakh crores, showing a very healthy growth from INR2.02 lakh crores last year.

  • Launched further variants in the bullion sector (monthly silver options) and fresh future contracts in cardamom and Nickel, along with MCX BULLDEX index options.

Concerns

  • A technical issue occurred on October 28, 2025, delaying trading and requiring a shift to the disaster recovery site.

  • Increased margin requirements for gold and silver F&O contracts were implemented in two phases during October 2025.

  • Analyst noted this was the second technical glitch on the platform within a 4-month period, raising concerns about frequency.

Key financials

  1. Revenue ₹401 Cr +29%YoY
  2. EBITDA ₹270 Cr +32%YoY
  3. PAT ₹197 Cr +29%YoY
  4. Average Daily Turnover (ADT) ₹4.11 lakh Cr +103.5%YoY

What they filed

Q1 FY27: revenue up 88.2%, net profit up 103.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue286 301 291 373 374 +31%666 +121%889 +205%702 +88%
EBITDA179 193 160 241 242 +35%494 +156%665 +316%494 +105%
Net profit154 160 135 203 197 +28%401 +151%530 +293%413 +103%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Revenue from Futures
    ₹114 Cr Revenue
  • Revenue from Options
    ₹223 Cr Revenue
  • Electricity Contract
    ₹34 Cr Average Daily Turnover (ADT)

What to watch in Q3 FY26

Resolution of Technical Glitch & Regulatory Outcome

next quarter
Current Root cause identified, system back on main site, regulatory process ongoing.
Target No further technical issues, clarity on SEBI's view/actions.

Why it matters

System stability is paramount for an exchange; regulatory actions could impact operations or reputation.

we have taken all steps to address these constraints and prevent similar issues from happening. The trading systems have not had any issues in the past, and this appears as a one-off, and we will continue to have a strong focus and resolution mechanism around this.

Risks & concerns

  • Technical Glitch and System Stability

    medium

    A technical issue occurred on October 28, 2025, delaying trading, which was the second such incident in 4 months, raising concerns about system stability.

    Both acknowledged

  • Regulatory Scrutiny and Potential Penalties

    medium

    Analyst raised concerns about potential penal orders from SEBI following the technical glitches, but management deferred comment pending ongoing regulatory processes.

    Analyst not addressed

  • Increased Margin Requirements for Bullion F&O

    low

    Margin requirements for gold and silver F&O contracts were increased in two phases in October due to market volatility, which could temporarily impact participation.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Technical Issue Root Cause and Resolution Direct
it is a predefined parameter limit, which was there in the gateway services. And this pertains to certain files, which include the configuration of things like the UCC. This crossed a particular limit that night because of which the threshold started becoming active. And with that threshold active, the gateway services were not able to get fully enabled.

Clarifies the specific technical glitch that caused trading disruption, its impact on DR site, and confirms resolution and return to main site.

Asked by Devesh Agarwal

Regulatory View on Technical Glitch and Penalties Evasive
Till that process is completed, it will be speculative to make any note or take a view on how this will go. I think we are confident about where we are, and this is the message that we'd like to give forward.

Analyst pressed on potential penal orders from SEBI given it was the second incident, but management deferred comment pending ongoing process, indicating uncertainty around regulatory outcome.

Asked by Devesh Agarwal

FPI Participation in BULLDEX Options Direct
So as of now, FPIs are not allowed to participate in any contract where the underlying is not cash-settled. So, because the underlying of the BULLDEX is gold 1 kg and silver 30 kgs, FPIs are not allowed to participate in BULLDEX options as of now.

Clarifies FPI eligibility for the newly launched cash-settled BULLDEX options, which was a point of interest for market participation.

Asked by Devesh Agarwal

Base Metal Delivery Centers Consolidation Strategy Direct
We have launched, in fact, Nickel only at one warehouse. We've consolidated Copper at only one warehouse now. That becomes active from the December contract... this consolidation is taking place. We also don't want to do sort of -- take all actions in one go. So, it will be sort of a phase-wise action here.

Provides an update on the strategic consolidation of delivery centers for base metals, aiming to improve market efficiency and participation.

Asked by Prayesh Jain

Drivers of Bullion Options Volume Growth Direct
It is always a combination of various factors which propel contracts to do better. And of course, there's been volatility. There's been heightened interest in these contracts, we made them monthly. So, it's a combination of all these factors.

Explains the multi-faceted reasons behind the recent surge in bullion options volumes, including volatility, increased interest, and the shift to monthly expiry.

Asked by Amit Chandra

Impact of Technical Glitch on Future Product Approvals Direct
Yes. No... So we have whatever product approvals we require are in place. And new products are as per what is approved under the commodity list of SEBI. So, at this stage, I think processes are being followed as always.

Addresses concerns about whether recent technical issues might hinder future product launch approvals from the regulator, with management indicating no immediate impact.

Asked by Niranjan Kumar

Margin Requirements for Gold & Silver F&O Direct
We took some urgent actions. We also made sure that our actions... reflected on actions that we saw in the global space... And I think our actions have helped and the situation has remained well under control... And we'll rationalize at the suitable time.

Management explains the rationale behind increased margins due to market volatility and backwardation, and commits to rationalizing them when appropriate, indicating active risk management.

Asked by Niranjan Kumar

Electricity Derivative Market Share and Competition Direct
the electricity contract is has picked up quite well. We are doing about INR34 crores of ADT, average traded lots of about 2,000 lots plus... I think I won't be able to comment what exactly is happening there, but we do see the healthy participation, the number of members, the broader trades that happen over the course of trading time and our contract design... All of these are very much what the market needs.

Provides an update on the performance of the electricity contract and management's confidence in its design and market acceptance despite competition.

Asked by Deepak Ajmera

3 min read 7 chapters

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.

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