Summary
Multi Commodity Exchange of India Limited - Q3 FY 2026 Earnings Call Summary Tuesday, January 27, 2026 4:00 PM IST
Event Participants
Executives 5 Chandresh Shah (CFO), Manoj Jain (Chief Compliance Officer), Praveen DG (Chief Risk Officer), Praveena Rai (MD & CEO), Rishi Nathany (CBO)
Analysts 11 Abhishek Jain, Aditi Parmar, Akhilesh Bhatter, Amit Chandra, Anand Dhaskaran, Ankur M., Ansuman Deb, Chintan Sheth, Devesh Agarwal, Parikshit Gupta, Prayesh Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹666 crores | +121% YoY; driven by increased ADT in bullion and energy segments. |
| EBITDA | ₹527 crores | +144% YoY; margin expansion due to high operating leverage despite rising tech spend. |
| Profit After Tax (PAT) | ₹401 crores | +151% YoY; significant growth on the back of robust transaction volumes. |
| Futures ADT | ₹2.20 lakh crores (approx.) | Part of the total ₹7.5 lakh crore total ADT; reflects consistent growth in base metals and bullion. |
| Options (Premium) ADT | ₹5.30 lakh crores (approx.) | Major contributor to the 220% YoY jump in total ADT; high retail and member participation. |
| Futures Revenue | ₹227 crores | + YoY; contributed ~37% of total transaction income for the quarter. |
| Options Revenue | ₹380 crores | + YoY; accounts for ~63% of transaction revenue, reflecting shifts in market preference. |
| Float Income | ₹45 crores | Derived from margin money held; remains a steady contributor to the bottom line. |
| Net Worth/SGF | N/A | Management noted continuous strengthening of SGF to provide a safety net for current volume levels. |
Geographic & Segment Commentary
- Bullion: This segment remains the primary driver of growth, contributing 69% of the average daily turnover (ADT). Growth was supported by several successful product launches, including Gold Mini, Gold Ten Futures, silver monthly options, and smaller denomination contracts to attract retail participants.
- Base Metals: Witnessed significant traction with Copper futures/options and Zinc. Copper volumes benefited specifically from the consolidation of delivery centers into a single primary warehouse, simplifying contract transparency for members.
- Energy: Revenue includes product license fees paid to CME for settling Crude Oil and Natural Gas against international prices. Management noted that while bullion led this quarter, energy remains a vital leg of the portfolio during periods of high fossil fuel volatility.
Company-Specific & Strategic Commentary
- User Experience & Onboarding: Traded UCCs (Unique Client Codes) saw a significant sequential jump. This was attributed to members aligning the front-end user experience of commodity trading with equity trading and the onboarding of new members with large existing retail bases.
- Warehouse Consolidation: MCX is actively rationalizing its warehouse footprint, particularly in base metals like Copper and Nickel, to drive delivery efficiency and resolve participant queries regarding GST handling.
- Technology Scalability: The exchange is currently in a “continuous investment mode.” Management confirmed the system is ready for 3x–4x current volumes and is actively building capacity to handle a potential 10x increase in the future.
- Risk Management: Margins in India remain among the highest globally (e.g., Silver at ~25%). The exchange utilizes the EWMA model for daily margin adjustments, ensuring risks are limited to a single day’s volatility.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume Capacity | Ready for 10x current levels | Commitment to ongoing tech capex to stay ahead of the massive retail and HNI onboarding curve. |
| Product Pipeline | New launches in 3-4 months | Focus on stabilizing recent launches (Nickel, Index Options) before rolling out the full pipeline. |
| Dividend Payout | To be decided post-FY26 | Final decision depends on capital requirements for growth and technology readiness. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competition & Monopoly Risk | Other exchanges are vying for share in bullion and energy. MCX relies on product innovation and its established liquidity moat to maintain leadership. |
| Regulatory Changes | Risks regarding “price discovery sharing” or interoperability are noted. Management maintains regular dialogue with SEBI but has no specific updates on structural changes. |
| Volatility Normalization | A sudden drop in global commodity volatility could lead to a volume plateau. MCX is diversifying into base metals and agri to create a new “baseline” for turnover. |
Q&A Highlights
Volume Drivers & UCC Growth
- Question: What is driving the significant jump in traded UCCs this quarter? (Devesh Agarwal)
- Answer: Two factors: new members joining the exchange and existing members aligning their front-end experience so that retail users can trade commodities as easily as equities (Praveena Rai).
Base Metal Strategy
- Question: What caused the sudden increase in base metal volumes? (Prayesh Jain)
- Answer: Consolidating Copper into a single delivery center and active market engagement to resolve GST-related delivery concerns helped significantly (Praveena Rai).
Index Options Traction
- Question: Why is traction minimal in index options compared to futures? (Amit Chandra)
- Answer: It takes time for contracts to build liquidity. While index futures have seen good momentum, options typically follow once the underlying futures market matures (Rishi Nathany).
Operational Leverage & Technology
- Question: Will operating expenses catch up with the revenue growth? (Aditya Yadav)
- Answer: Yes, spends will catch up. It is essential to invest in technology and operations to deliver the resilience required for current and future volume multiples (Praveena Rai).
Key Takeaway
MCX delivered a landmark quarter with consolidated revenue growing 121% YoY to ₹666 crores and PAT soaring 151% to ₹401 crores. The quarter was characterized by a massive 220% YoY increase in Average Daily Turnover (ADT) to ₹7.5 lakh crores, primarily driven by bullion options and a surge in retail participation via new member onboardings. Strategically, the exchange is focusing on diversifying its volume mix through base metal warehouse consolidation and stabilizing its recent index launches. Looking forward, management is preparing the technological infrastructure to handle a 10x increase in volumes, assuming the current momentum in Unique Client Code (UCC) growth persists. While competition from other exchanges remains a persistent structural risk, MCX continues to leverage its deep liquidity and conservative risk management framework to consolidate its dominant market share. Continued investment in system resilience and product innovation remains the core focus for FY2027.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: