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.

Multi Commodity Exchange of India Limited (MCX), India's leading commodity derivatives exchange, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

MCX reported a consolidated net profit of ₹197.47 crore for Q2 FY26, marking a substantial 29% year-on-year increase from ₹153.62 crore in the corresponding quarter of the previous year. The company's revenue from operations also saw a notable rise, reaching ₹374.23 crore, up by approximately 31% compared to Q2 of the previous year.

Here's a breakdown of MCX's key financial metrics for Q2 FY26:

Operational Performance

The exchange reported a significant increase in its Average Daily Turnover (ADT), which rose to ₹411,270 crore, reflecting strong market participation and liquidity. This growth in trading volumes underscores the trust and confidence of stakeholders in MCX's market ecosystem.

Business Highlights

• The bullion segment has increased its share in ADT from 44% to 57%, 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, following positive response to monthly Gold Options contracts.
• The exchange launched Cardamom Futures Contract in July 2025 and a new Nickel Futures contract in August 2025.
• Monthly Options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX) were introduced in October 2025, covering both Gold and Silver.

Corporate Actions

The Board of Directors has approved a stock split in the ratio of 1:5, reducing the face value of shares from ₹10 to ₹2 per share. This decision, approved by shareholders in the 23rd Annual General Meeting on September 12, 2025, is currently in the implementation process.

Management Commentary

Praveena Rai, Managing Director & CEO of MCX, commented on the results, stating, "It gives me great pleasure to share our results of resilient performance. 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."

Technical Update

MCX experienced a technical issue on October 28, 2025, which delayed the commencement of trading. The exchange swiftly addressed the situation by shifting operations to the Disaster Recovery (DR) site, with trading resuming at 1:25 PM. The company has identified the root cause and taken steps to prevent similar issues in the future, assuring that its systems are well-positioned to support market volumes and growth.

Outlook

With its strong financial performance, expanding product portfolio, and commitment to technological robustness, MCX continues to solidify its position as India's leading commodity derivatives exchange. The company's focus on innovation and market deepening strategies suggests a positive outlook for future growth and market leadership in the commodity trading space.

As MCX navigates the dynamic landscape of commodity markets, its recent performance indicates a strong foundation for sustained growth and value creation for its stakeholders in the coming quarters.