Multi Commodity Exchange of India Limited (MCX) has reported a robust financial performance for the second quarter, with significant growth in revenue and profitability. The exchange also introduced new products and faced a technical issue during the period.

Financial Highlights

MCX's financial results for Q2 show strong growth across key metrics:

The exchange's revenue from options trading stood at ₹223.00 crores, while futures contributed ₹114.00 crores for the quarter.

Market Activity and Product Launches

MCX witnessed a significant uptick in market activity, with the Average Daily Turnover (ADT) doubling to ₹4.11 lakh crores from ₹2.02 lakh crores in the previous year. This increase reflects growing market participation and liquidity across various commodity segments.

The exchange expanded its product offerings during the quarter, launching:

• Monthly options on silver contracts
• Fresh futures contracts in cardamom and nickel
• MCX BULLDEX index options in October

These new products aim to provide more diverse trading and hedging opportunities for market participants.

Technical Disruption

On October 28, MCX experienced a technical issue that delayed trading until 1:25 PM. The exchange had to shift operations to its disaster recovery site due to predefined parameter limits in gateway services related to unique client codes. MCX has stated that steps have been taken to address these constraints and prevent similar issues in the future.

Membership and Participation Growth

MCX added 17 new members during the year, indicating growing interest in commodity trading. The exchange reported increased participation in bullion options following the shift from bimonthly to monthly expiry cycles.

Outlook

Praveena Rai, Managing Director and CEO of MCX, expressed optimism about the exchange's growth trajectory. She stated, "We are positive. We are optimistic. A lot of business actions on the ground, product suite enhancements. We've spoken about all of that. So, I think we are moving across various axes here."

The exchange plans to continue expanding its product suite and enhancing technology infrastructure to support market growth and reinforce its position as India's leading commodity derivatives exchange.

As MCX navigates through its growth phase, it faces both opportunities and challenges. The recent technical disruption highlights the need for robust systems to support increasing market activity. Meanwhile, the introduction of new products and growing institutional participation suggest potential for further market expansion in the coming periods.

Multi Commodity Exchange of India Limited (MCX) shares experienced a downturn following Morgan Stanley's 'Underweight' rating, despite the company reporting robust financial results for the second quarter of fiscal year 2026.

Market Reaction and Analyst Perspectives

MCX shares opened 5% lower after Morgan Stanley maintained an 'Underweight' rating on the stock, setting a target price of ₹5,860.00. This target implies a significant 37% downside from the last closing price. As of the latest trading session, MCX shares were down 2.79% at ₹8,992.50, despite the stock having gained nearly 45% year-to-date.

Morgan Stanley's cautious stance comes even as MCX's quarterly profit after tax and core EBITDA met estimates, with the company achieving a 2% cost reduction. The investment bank noted that sustained higher revenue could create upside risk to earnings forecasts.

In contrast, UBS took a more optimistic view, raising its price target for MCX to ₹12,000.00 from ₹10,000.00. UBS cited strong October performance driven by elevated bullion prices, higher volatility, and rising interest in energy commodities.

The divergent analyst opinions are reflected in the overall market sentiment, with 5 out of 11 analysts recommending 'Buy', 4 suggesting 'Hold', and 2 recommending 'Sell'.

Q2 FY26 Financial Highlights

MCX's financial results for the quarter ended September 30, 2025, showcase strong growth:

The company's performance in the first half of FY26 was equally impressive:

Business Highlights and New Initiatives

MCX has strengthened its position in the commodity derivatives market through several initiatives:

1. The bullion segment increased its share in Average Daily Turnover from 44% to 57%, supported by the launch of new variants like Gold Mini and Gold Ten Futures.
2. Introduction of monthly expiry contracts for Silver (30 kg) and Silver Mini (5 kg) options.
3. Launch of Cardamom Futures Contract in July 2025.
4. Introduction of a new Nickel Futures contract in August 2025.
5. Launch of monthly Options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX) in October 2025.

Technical Challenges and Resolution

On October 28, 2025, MCX faced a technical issue that delayed the commencement of trading. The company swiftly addressed the situation by shifting operations to the Disaster Recovery (DR) site, resuming trading at 1:25 PM. MCX identified the root cause as a predefined parameter limit related to reference data like Unique Client Code (UCC) configured within the systems. The company has taken steps to prevent similar issues in the future and assured that its trading systems are well-positioned to support market volumes and growth.

Praveena Rai, Managing Director & CEO of MCX, commented on the results, stating, "Our continued growth across product segments and strong participation reflect the confidence that market participants have in MCX's transparent market ecosystem. We remain committed to expanding our product offerings and deepening market penetration, further strengthening our role as the preferred destination for commodity derivatives trading in India."

As MCX navigates through market volatility and analyst scrutiny, investors will be closely watching the exchange's ability to maintain its growth trajectory and address technical challenges in the coming quarters.