MCX - Multi Commodity Exchange of India Ltd Share Price

During the Q2 FY2026 earnings conference call, management provided an optimistic outlook for Multi Commodity Exchange of India Limited (MCX), highlighting a strong operational and financial performance. For the quarter, consolidated total revenue was reported at INR 401 crores, reflecting a 29% year-over-year growth. EBITDA rose by 32% to INR 270 crores, while profit after tax also increased by 29% to INR 197 crores. The average daily turnover (ADT) for the quarter was INR 4.11 lakh crores, a notable rise from INR 2.02 lakh crores a year prior.

Management discussed several strategic forward-looking initiatives, including the launch of new contracts such as monthly options on silver and fresh futures contracts in cardamom and Nickel. They emphasized a commitment to bolstering technology and expanding the product suite to enhance market participation and reinforce MCX's position in the commodities derivatives space.

Management acknowledged a recent technical issue that occurred on October 28, 2025, but reassured stakeholders that it was promptly addressed and reiterated their confidence in the resilience of their trading systems. They are committed to ongoing improvements in their technology infrastructure to support anticipated market volume growth.

Looking ahead, management is optimistic about the potential of the recently launched BULLDEX index options, underscoring that the index options are cash-settled and do not devolve into futures or underlying assets. While they expect organic growth in these contracts, they acknowledged that it may take time to build volume. Furthermore, they are focused on increasing domestic institutional participation, noting a growing interest from mutual funds and other participants in the commodities market.

Overall, management believes that the fundamentals are in place for sustained growth, positioning MCX well to capture opportunities in the evolving commodities landscape.

Question 1: Can you help us understand what exactly was the issue that happened during the technical glitch, and what steps have been taken to rectify it? Is trading now back on the main site?

Answer: Yes, trading has moved back to the main site. The root cause was a predefined parameter limit in our gateway services related to configuration files. This caused a threshold to activate, preventing full system enablement. We took steps to rectify the issue and conducted extensive root cause analysis to prevent recurrence. The systems are now stable and fully operational.

Question 2: Did you have any discussions with SEBI regarding the implications of these technical glitches, and are we expecting any penalties?

Answer: Yes, we are in ongoing discussions with SEBI. The earlier incident involved the clearing corporation, while this one pertains to trading systems. As processes are ongoing, it's premature to speculate on the outcomes. We remain confident about our standing and are addressing the situation seriously.

Question 3: What steps are being taken to address the poor performance in the base metals segment, particularly regarding delivery centers?

Answer: We are actively consolidating delivery centers for base metals. Nickel will now be traded from a single warehouse, and we've similarly streamlined Copper deliveries. It's a phased process as we seek market participant inputs to ensure it meets their needs. We're optimistic about increasing volumes through these actions.

Question 4: Can you provide updates on the participation trends in the newly launched BULLDEX options?

Answer: Participation is trending positively, with a diverse mix of retail, institutional, and hedging players getting involved. It's still early days, and while we expect gradual growth, potential retail interest could rise, enhancing overall engagement with this product.

Question 5: With the recent increase in margin requirements for gold and silver, can we expect a return to previous levels after prices stabilize?

Answer: We monitor market conditions closely, particularly during high volatility periods. Our recent actions helped stabilize the situation, and we will evaluate margins regularly. We remain adaptive to market shifts and will rationalize margins when appropriate.

Question 6: Is there any impact from the recent technical glitches on future product launch approvals from the regulator?

Answer: No, we have the necessary product approvals in place. The new products adhere to SEBI's regulations. We are following the established processes, so we do not foresee any delays related to the technical glitches impacting product rollouts.

Question 7: Are there plans to introduce weekly expiry options on commodities similar to equity markets?

Answer: We are considering the introduction of weekly options, but we need to assess their implications on both equity and commodities. While it's on our radar, there's no finalized timeline yet, as we want to ensure it aligns with market needs.

Question 8: Given the rise in bullion options, how do you attribute this trend? Is it solely due to price volatility or also related to changes in contract structure?

Answer: The increase in participation stems from a combination of factors: enhanced volatility, changes to monthly expiration, and increased retail interest. Each element contributes to driving volumes, but it's a holistic interplay, not a single cause.

Question 9: What are the expected revenue contributions from the SGF for Q3, considering increased activity in October?

Answer: The SGF contribution has increased due to the October activity, and while I can't provide specifics, we anticipate a positive impact on revenue as a result of heightened trading volumes in the bullion segment.

Question 10: Can you clarify the participation from various types of investors in the newly launched contracts and if there's been any cannibalization from existing contracts?

Answer: Participation has been diverse across retail, institutional, and hedging segments. We believe new contracts typically complement existing offerings rather than cannibalize them, as each can serve different user needs in the market.