The share price of Multi-Commodity Exchange of India (MCX) fell 1.49% intra-day just a day after the share price hit fresh highs. In fact, the shares have been volatile through October and November, swinging sharply after the October 28 technical glitch that delayed market opening and forced MCX to switch to its disaster recovery site.
However, one of Inda’s leading commodity exchanges reported a robust Q2 FY26 print, with revenue, volumes and profits rising sharply on the back of strong bullion participation and exploding options activity. The combination of record notional volumes and operational questions has kept the stock in focus.
MCX Strong Q2 print
MCX’s consolidated revenue for Q2 FY26 rose to Rs 400.79 crore from Rs 310.82 crore, as per the company’s statement. Profit after tax increased to Rs 197.47 crore from Rs 152.93 crore. The exchange delivered an EBITDA of Rs 270.19 crore, up from Rs 204.72 crore, with margins holding above 67%.
Average daily turnover (ADT) surged, led almost entirely by bullion. Total ADT increased to Rs 4.11 lakh crore from Rs 2.20 lakh crore a year earlier. Options accounted for Rs 3.69 lakh crore of this notional, while futures contributed Rs 41,758 crore.
Despite these numbers, the stock has been unable to hold recent highs above Rs 10,000. Traders attribute the weakness to uncertainty around potential regulatory actions following the October outage, and the fact that MCX’s valuation already prices in strong FY26–FY27 growth.
MCX: Bullion-led shift in revenue mix deepens
Bullion contracts now sit at the center of MCX’s growth story. In Q2, bullion’s share of total ADT rose to 57% from 44%. Gold Mini, Gold Ten Futures and monthly Gold Options have added both breadth and liquidity. Silver contracts have also been expanded, with the exchange introducing 30 kg and 5 kg variants after what it described as “positive market response.”
Options notional rose 91% year on year in Q2. Premium income, which flows directly into transaction charges and clearing fees, saw a similar jump.
Management stressed during the call that the trend remains structural. “The options segment has been gaining traction across gold and silver. The monthly expiries have helped attract more participants,” the company said on the earnings call.
MCX operational developments: New contracts and October outage
MCX continued to widen its product suite in Q2 and early Q3. Nickel futures were relaunched with revised lot sizes and delivery norms. Cardamom futures will go live from July 2025, with expiries spanning August to November 2025. The exchange also introduced options on the MCX iCOMDEX Bullion Index (MCX BULLDEX) from October 2025.
While liquidity in new contracts will take time to build, the steady flow of product approvals reinforces the exchange’s long-term strategy of reducing concentration risk.
MCX: Market structure
The surge in bullion options is driving both retail and institutional interest. Market share data in the investor deck places MCX at nearly 100% in precious metals, energy and base metals futures, giving it a near-monopoly position in the domestic commodities market.
However, some new products are not eligible for foreign portfolio investor participation. The exchange acknowledged that FPIs cannot trade in MCX BULLDEX options because the underlying is not cash-settled. This limits early-stage liquidity formation.
Meanwhile, the exchange continues to streamline its delivery infrastructure. Management said cumulative deliveries across metals have reached roughly five lakh tonnes, with consolidation underway in select categories.
MCX: October 28 tech glitch raises fresh questions
But the quarter was overshadowed by the October 28 trading disruption. Markets opened only at 1:25 pm after MCX shifted operations to its DR site.
In the earnings call, management outlined the root cause as a configuration threshold within gateway services. “There was a predefined parameter limit in the gateway services related to reference data. The configuration crossed the limit and so the gateway service did not enable,” the company said. It added that the same parameter existed in the DR setup, requiring additional steps before trading could resume.
The company insisted that the issue has been “rectified with process changes and parameter enhancement,” but investors remain cautious because this came just months after a separate clearing-system problem.
MCX on margins and volatility: bullion stays in focus
Margins in gold and silver were raised in October due to rising global volatility and tightness in physical markets. Management said margins remain elevated but will be reviewed as volatility normalises.
The exchange added that bullion options are now the primary revenue engine. It expects the contribution of other segments to gradually increase as new contracts gain participation, but for now the growth trajectory is anchored in gold and silver.
What MCX management expects
MCX expects options participation to deepen further. Management said: “Options ADT has been growing steadily. With new contract variants and expiries, we expect the momentum to continue.”
They also reiterated expectations of stable operational performance despite October’s disruption. “The systems are stable. We have taken corrective and preventive actions,” MCX said during the call.
The exchange added that upcoming technology upgrades have been planned and budgeted.
