MCX Q1 Profit Soars 50%, Stock Split Announced Amid Morgan Stanley's Cautious Stance

1 min read     Updated on 04 Aug 2025, 10:45 AM
scanxBy ScanX News Team
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Overview

Multi Commodity Exchange of India Ltd. (MCX) reported a 50% increase in net profit to Rs 203.19 crore for Q1, with revenue up 28.1% to Rs 373.21 crore. EBITDA rose 51% to Rs 241.66 crore, and EBITDA margin expanded to 64.8%. The board approved a 1:5 stock split. Despite the strong performance, Morgan Stanley maintained an 'underweight' rating, citing expensive valuation and revenue concentration concerns. Operational challenges include higher employee expenses and declining average daily transaction revenues.

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*this image is generated using AI for illustrative purposes only.

Multi Commodity Exchange of India Ltd. (MCX) has reported a robust financial performance for the first quarter, accompanied by a significant corporate action. However, the exchange faces a cautious outlook from a major financial institution.

Strong Q1 Performance

MCX delivered impressive quarterly results:

  • Net profit surged 50% to Rs 203.19 crore, up from Rs 135.46 crore in the same period last year
  • Revenue increased by 28.1%, reaching Rs 373.21 crore
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose 51% to Rs 241.66 crore

Margin Expansion and Profit Beat

  • EBITDA margin expanded to 64.8% from 55% in the comparable period
  • Profit after tax exceeded analyst estimates by 4%

Stock Split Announcement

MCX's board has approved the company's first-ever stock split:

  • Split ratio: 1:5
  • Face value reduction: from Rs 10 to Rs 2 per share

Morgan Stanley's Cautious Stance

Despite strong quarterly performance, Morgan Stanley maintained an 'underweight' rating on MCX, citing:

  • Expensive valuation
  • Low conviction on revenue sustainability
  • Significant revenue concentration in a few commodities

Operational Challenges

Some operational challenges were noted:

  1. Higher employee expenses led to Core EBITDA missing estimates by 2%
  2. Average daily transaction revenues declined from Rs 525 lakh to Rs 456 lakh

Market Implications

  • Strong financial performance contrasts with cautious analyst outlook
  • The stock split could potentially increase market participation and liquidity
  • Investors may focus on MCX's ability to diversify revenue streams and maintain growth
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MCX Approves 1:5 Stock Split, Reports 59% Revenue Growth

2 min read     Updated on 01 Aug 2025, 08:31 PM
scanxBy ScanX News Team
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Overview

Multi Commodity Exchange of India Ltd (MCX) has approved a 1:5 stock split, reducing share face value from Rs 10 to Rs 2. Q1 financial results show significant growth: Revenue from Operations up 59% to Rs 373.21 crore, Total Income up 60% to Rs 405.82 crore, EBITDA up 81% to Rs 274.27 crore, and PAT up 83% to Rs 203.19 crore. Average Daily Turnover increased to Rs 3,10,775 crore. MCX maintains its position as the world's largest Commodity Option Exchange and has moved up to 6th largest Commodity Exchange globally. The exchange launched India's first Electricity Futures contracts and new Bullion segment variants.

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*this image is generated using AI for illustrative purposes only.

Multi Commodity Exchange of India Ltd (MCX), India's leading commodity derivatives exchange, has announced a series of significant developments, including a stock split and robust financial results for the first quarter.

Stock Split to Enhance Accessibility

The MCX Board has approved a stock split in a 1:5 ratio, subject to regulatory and shareholder approvals. This move will reduce the face value of each share from Rs 10 to Rs 2. The primary rationale behind this decision is to enhance stock affordability and make it more accessible to retail investors.

Strong Financial Performance

MCX reported impressive financial results for the first quarter:

Metric Amount (Rs Crore) YoY Growth
Revenue from Operations 373.21 59%
Total Income 405.82 60%
EBITDA 274.27 81%
Profit After Tax (PAT) 203.19 83%

The exchange's Average Daily Turnover (ADT) increased significantly to Rs 3,10,775 crore, reflecting renewed participant interest and a dynamic market environment.

Operational Highlights

  • MCX maintained its position as the world's largest Commodity Option Exchange during 2024, according to FIA data.
  • The exchange launched India's first Electricity Futures contracts, providing a much-needed risk management instrument for the sector.
  • The Bullion segment increased its share in ADT from 23% to 44%, supported by the launch of new variants such as Gold Mini and Gold Ten Futures.
  • MCX introduced monthly expiry contracts for Silver (30 kg) and Silver Mini (5 kg) options, responding to industry demand.

Market Position and Future Outlook

MCX continues to dominate the Indian commodity derivatives market with a 98.80% market share. The exchange has moved up to become the world's 6th largest Commodity Exchange in 2024, improving from its 7th position in 2023.

Commenting on the results, Ms. Praveena Rai, Managing Director & CEO of MCX, said, "We began this financial year on a positive note, demonstrating resilience, adaptability, and strategic focus amid a continuously evolving market environment. We've also witnessed increased participation from institutional clients and hedgers, especially from the MSME sector and physical market players."

The exchange remains focused on developing the commodity derivative market, improving physical market linkages, and enhancing transparency. MCX is also committed to strengthening its technology and risk frameworks to serve stakeholders better in the coming times.

With these developments, MCX is poised for continued growth and innovation in the Indian commodity markets, offering enhanced accessibility to investors and robust risk management tools for market participants.

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