Multi Commodity Exchange of India’s (MCX) share price rallied 7.5% to an intra-day high of Rs 7,971. The surge in stock price came after the bourse got the market regulator Securities Exchange Board of India’s (SEBI) nod to introduce electricity derivative contracts.
These contracts will allow power generators, distribution companies, and large consumers to hedge against price volatility and manage risks more effectively. The derivative contracts will be linked to the price of electricity. “The electricity derivatives contracts will enhance efficiency in the power market,” MCX said in its filing.
“These [electricity] contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,” said Praveena Rai, managing director and chief executive of MCX.
Before MCX, the National Stock Exchange received in principle approval from the markets watchdog to launch electricity derivatives, said the company while reporting its quarterly earnings in May.
MCX Q4 results
The exchange reported a consolidated net profit growth of 54% year-on-year to Rs 135 crore in Q4 FY25 compared with Rs 88 crore posted in the same period a year ago. The revenue from operations came in at Rs 291 crore in the third quarter of FY25, up 61% YoY from Rs 181 crore in the same period of the last financial year.
Also, the company declared a final dividend of Rs 30 per equity share for the financial year ended March 31, 2025.
MCX stock performance
The share price of MCX has risen more than 17% in the last five trading sessions. It has given a return of 40% in the last one month. The stock has raised investors’ wealth by 16% in the past six months. The stock price of MCX has held gains of 118% in the last one year.
