India’s equity market has been moving through a remarkable phase. Trading screens are busier, new investors are entering in larger numbers, and market activity feels far more widespread than it did a few years ago. What earlier looked like a short burst of enthusiasm has settled into a steady, everyday habit for many households.
This change has altered the fortunes of companies that operate behind the scenes. Exchanges and other market-infra players, once viewed as slow and predictable, are now riding a wave of participation that cuts across geographies and income groups. Their growth doesn’t hinge on one sector doing well. It flows from a system that is expanding on its own momentum.
Amid this shift, three listed exchange players stand out. BSE has regained momentum, with trading interest rising across its key businesses. MCX remains the main venue for commodity contracts even as it navigates its ongoing technology transition. IEX, on the other hand, has continued to expand on the back of rising power-market activity and steady participation from utilities and commercial buyers.
Taken together, they show how the market is changing. Each company sits close to the flow of new investors and higher activity, and their earnings rise as more trades move through formal channels. Their growth mirrors the deepening of India’s financial system itself. Their story is not about a single cycle. It is about the market’s deepening and the compounding that follows.
#1 BSE: The Tech-Led Resurrection
Bombay Stock Exchange (BSE) is an Indian Stock Exchange located at Dalal Street in Mumbai. The company facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds.
BSE delivered a solid second quarter, with revenue climbing to its highest level yet at Rs 1,139 crore. It jumped 40% YoY this quarter as activity picked up in derivatives, new listings and co-location. Income from transactions also saw a noticeable jump, helped by heavy fundraising and consistent participation from retail investors. Net profit for the quarter came in at Rs 558 crore, a sharp 61% jump over the same period last year.
The exchange also continued to expand its SME and index businesses, with over 657 SMEs listed and passive asset under management (AUM) tracking BSE indices crossing Rs 2.5 lakh crore. The pattern points to what is driving the exchange’s momentum: more investors coming in and greater use of its newer offerings.
A large part of this progress is also tied to the technology improvements the exchange has been putting in place. The clearing corporation scaled its throughput to 27,000 trades per second per member per client, enabling more large brokers to shift to ICCL. Co-location revenue also increased after infrastructure additions. Such investments lift capacity first and reflect in revenues over time, creating a compounding effect as volumes build on a stronger base.
BSE also reported progress on longer-dated derivatives, smart order routing and new index products, including RBI-approved debt indices. These initiatives broaden participation and create recurring revenue streams with low incremental cost.
With a healthy IPO pipeline and rising adoption across platforms, BSE enters the next quarter with momentum. The exchange expects its recent investments to convert into steady operating leverage rather than one-off gains, reinforcing a compounding cycle driven by scale, technology and retail depth.
In the past one year BSE share price rallied 45.8%.
BSE 1 Year Share Price Chart
#2 MCX: The Commodity Options Cash Cow
The Multi Commodity Exchange of India (MCX) is India’s leading commodity derivatives exchange which offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. The Exchange operates under SEBI.
MCX reported a strong quarter as revenue rose by 29% year-on-year (YoY) to Rs 401 crore, supported by higher activity across bullion and base metals. Average daily turnover doubled to Rs 4.1 lakh crore, showing deeper participation from retail, hedgers and commercial users. The company’s profit after tax grew also by 29% YoY to Rs 197 crores.
New monthly options in gold and silver, along with revised nickel and cardamom futures, helped broaden the product mix. The exchange also consolidated delivery centres in key metals to improve efficiency and reduce friction for traders.
Technology upgrades remain central. MCX completed a shift back to its primary site after resolving a parameter-limit glitch and said its systems are ready for rising volumes. Planned investments will continue as capacity needs expand with market depth.
Management said they are seeing more domestic institutions and fresh members coming onto the platform. Newer products, such as BULLDEX options and electricity-linked contracts, have also started to gain some early traction. For MCX, this kind of expansion tends to build on itself: once the systems are set up, every additional product or participant adds to activity without pushing up costs in the same way. The exchange now heads into the next quarter with steadier operations and a broader base of users to work with.
In the past one year MCX share price rallied 48.2%.
MCX 1 Year Share Price Chart
#3 IEX: The Value Play in a Power-Hungry Nation
Incorporated in 2007, Indian Energy Exchange provides an automated platform and infrastructure for carrying out trading in electricity units for physical delivery of electricity.
IEX reported steady growth in the September quarter as electricity volumes rose 16% YoY to 35.2 billion units. Revenue increased at a slower pace because certificate trading was weaker and fees were reduced last year. Even so revenue grew by 9.2% YoY, to Rs. 183.3 crores in Q2 FY26. Profit after tax showed a stronger growth, it increased by 13.9% to Rs. 123.4 crores in Q2 FY26.
The real-time market continued to expand, accounting for 36% of total volume as lower prices drew more demand from state utilities. The green market also improved, supported by better renewable availability.
Several regulatory changes are expected to deepen participation. Draft rules for virtual PPAs and carbon credit trading have moved closer to final approval, and new segments such as peak-hour markets and longer-tenor contracts await clearance. The company also highlighted progress at IGX, where gas volumes grew 37% amid stable prices.
For IEX, compounding comes from scale. Once the platform is built, each new product, rule change or participant lifts volumes without matching cost. With policy support and rising electrification, the exchange sees room to sustain its long-term growth trend.
In the past one year Indian Energy Exchange share price tumbled 25.1%.
Indian Energy Exchange 1 Year Share Price Chart
Valuations
Let’s now turn to the valuations of the Indian exchange companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Indian Exchange Stocks in India
| Sr No | Company | EV/EBITDA | 5 Year EV/EBITDA Median | ROCE |
| 1 | BSE | 41.8 | 21.2 | 46.6% |
| 2 | Multiple Commodity Exchange | 51.7 | 32.8 | 42.9% |
| 3 | Indian Energy Exchange | 20.4 | 30.8 | 53.6% |
BSE and MCX are trading well above their five-year medians, reflecting the sharp improvement in earnings over the last two years and the broader rerating of market-infrastructure stocks. Their returns on capital also remain strong, which helps explain why investors have been willing to pay higher multiples for both.
IEX sits on the other side of the table. Its current multiple is below its five-year median even though its ROCE remains the highest in the group. That gap suggests the market is still weighing the impact of regulatory changes related to market coupling and waiting for clearer visibility on new segments.
These differences matter. Exchange businesses tend to compound steadily once volumes build, but valuations decide how much of that future growth is already priced in. The opportunity lies in judging whether the current premiums for BSE and MCX leave room for further upside, and whether IEX’s discount offers a sensible entry point as the policy environment settles.
Risks
Over the last year, various regulatory changes have created a challenging environment for exchanges. On the one hand, SEBI’s hard stand on curbing incessant trading in futures and options took a toll on the exchanges. On the other, the government of India’s desire to couple all the power exchanges came as a rude shock to IEX, the near monopoly exchange for energy.
More than anything this highlights the risk of being invested in a regulated entity.
Conclusion
India’s exchange ecosystem is moving through a period of deep structural change. Retail participation is broadening, new products are gaining ground and regulatory shifts are reshaping how volumes flow across the system. BSE, MCX and IEX may play different roles in the market, but they are all being shaped by the same shift toward deeper financial participation in the country.
What comes next for them will hinge on whether they can translate this wider market shift into growth that holds up over time. Technology upgrades, product expansion and policy clarity will play a central role. At the same time, valuations already reflect a good part of the optimism in the sector, which makes it important to judge whether the current prices leave enough room for further compounding.
As always, investors should look beyond near-term momentum and weigh balance sheets, business models and regulatory risks carefully before making any decision.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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