MCX Shares Scale New Peak as Q3 Performance Exceeds Expectations
Shares of the Multi Commodity Exchange (MCX), India's premier commodity derivatives platform, witnessed a significant surge of 7.7% during early trading on Wednesday, January 28. The stock climbed to a fresh all-time high of ₹2,605 per share, marking its second consecutive session of gains. This impressive rally was fueled by the company's outstanding financial performance for the third quarter of fiscal year 2026, which surpassed market forecasts across all key metrics.
Robust Financial Growth Driven by Volume Surge
The exchange reported a remarkable 115% year-on-year increase in revenue, which soared to ₹697 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced an even more dramatic rise, jumping 144% YoY to ₹527 crore. The net profit figure was particularly striking, improving by 151% YoY to reach ₹401 crore. This is a substantial leap from the ₹160 crore net profit recorded in the corresponding quarter of the previous fiscal year.
The cornerstone of this financial success was a powerful expansion in trading volumes. The average daily turnover (ADT) for the quarter multiplied by 3.3 times year-on-year, reaching an impressive ₹7.9 trillion. This growth was primarily propelled by exceptional performance in both options and futures segments.
Detailed Breakdown of Trading Volume Growth
Options Segment: The notional average daily turnover for options contracts skyrocketed by 221% YoY to ₹6.7 trillion. This surge was largely supported by extraordinary growth in specific commodity categories. Bullion contracts, encompassing gold and silver, led the charge with a staggering 987% YoY increase, while energy contracts also contributed significantly with a 30% YoY rise. The options premium ADT also grew robustly by 97% YoY to approximately ₹71 billion, again led by bullion contracts which saw a 959% YoY jump.
Futures Segment: The futures average daily turnover also posted strong gains, rising 207% YoY to ₹886 billion. This growth was fueled by substantial increases across multiple commodity groups: bullion contracts grew by 297% YoY, energy contracts by 45% YoY, and base metal contracts by 62% YoY.
While bullion trading was the dominant force behind the incremental volume growth in Q3, the exchange noted meaningful contributions from other segments as well. Base metals in the futures segment and natural gas in the options segment have shown significant upward momentum over recent months.
Market Dominance and Brokerage Outlook
According to the company's earnings report, MCX continues to maintain a commanding position in India's vast commodity market, which is valued at approximately ₹850 trillion. The exchange holds over 99% market share across key segments including bullion, base metals, and energy.
Despite the strong quarterly show, domestic brokerage firm Motilal Oswal has flagged potential near-term headwinds. The brokerage anticipates that commodity volumes may normalize following recent price volatility, projecting flat volumes for January 2026 and a potential 20% decline in February 2026. However, it expects a gradual recovery thereafter, with around 3% month-on-month growth in March 2026 and approximately 1% growth in subsequent months. The analysis does not factor in any material contribution from electricity or index contracts at this stage.
In response to the robust December quarter performance, Motilal Oswal has revised its earnings per share (EPS) estimates upward for FY26, FY27, and FY28 by 9%, 22%, and 24% respectively. This adjustment incorporates the strong volume growth witnessed. The brokerage has reiterated a 'Neutral' rating on MCX stock while setting a one-year target price of ₹2,750.
Disclaimer: This article is for informational purposes only. The views and recommendations expressed are those of individual analysts or brokerage firms and not of the publisher. Investors are advised to consult with certified financial experts before making any investment decisions.
