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    Multi Comm. Exc.

    MCX
    Financial Services·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

    4
    • 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

    3
    • 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.

    What Changed1

    vs Q3 FY26

    Guidance items4 → 0 (-4)

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹401 Cr+29.0%YoY
    2. 02EBITDA₹270 Cr+32%YoY
    3. 03PAT₹197 Cr+29.0%YoY
    4. 04Average Daily Turnover (ADT)₹4.11 Cr+103.5%YoY

    Segment breakdown

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

    Resolution of Technical Glitch & Regulatory Outcome

    next quarter
    CurrentRoot cause identified, system back on main site, regulatory process ongoing.
    TargetNo 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.

    How to verify

    risks_and_concerns[risk='Technical Glitch and System Stability']

    Risks & concerns

    3
    RiskSeverity

    Technical Glitch and System Stability

    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

    medium

    Regulatory Scrutiny and Potential Penalties

    Analyst raised concerns about potential penal orders from SEBI following the technical glitches, but management deferred comment pending ongoing regulatory processes.Analyst not addressed

    medium

    Increased Margin Requirements for Bullion F&O

    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

    low

    Q&A highlights

    8

    “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

    3 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.