MCX Q2 FY26: Strong Growth Amidst Technical Hurdles

Multi Commodity Exchange of India Limited (MCX) has delivered a robust financial performance for the second quarter of fiscal year 2026, showcasing significant growth across key metrics. The company reported a consolidated total revenue of INR 401 crore, marking a substantial 29% increase year-over-year. This strong top-line growth translated into a 32% rise in EBITDA, reaching INR 270 crore, while Profit After Tax (PAT) also climbed by 29% to INR 197 crore. These figures underscore a period of healthy market activity and expanding participation within India's commodity derivatives sector.

The impressive financial results were largely propelled by a remarkable surge in Average Daily Turnover (ADT), which soared to INR 4.11 lakh crore in Q2 FY26. This represents a staggering 103% growth compared to INR 2.02 lakh crore recorded in the corresponding quarter of the previous fiscal year. The management attributed this growth to sustained confidence among market participants and broader engagement across various stakeholder groups. The revenue split for the quarter indicated that futures contributed INR 114 crore (28.44%) and options contributed INR 223 crore (55.63%) to the total income.

Strategic Initiatives and Market Expansion

MCX has been proactive in expanding its product offerings and enhancing market infrastructure. The company launched several new products, including additional variants in the bullion sector, such as monthly options for silver (both 30 kg and mini 5 kg contracts). New futures contracts for cardamom and Nickel were also introduced, alongside the MCX BULLDEX index options in October 2025. These launches are part of a broader strategy to diversify the product suite and cater to evolving market demands.

In a move to streamline operations and improve efficiency, MCX has initiated the consolidation of base metal delivery centres. Nickel now operates from a single warehouse, Copper from one (effective December contracts), and Aluminium from three. This strategic rationalization, based on market feedback and delivery data, aims to enhance the attractiveness and liquidity of base metal contracts.

Technology and Participation Growth

Technology remains a core focus for MCX, with ongoing investments planned to ensure the platform can support anticipated growth in trading volumes. The management emphasized continuous upgrades to maintain operational efficiency and stability. This commitment is crucial, especially in light of recent operational challenges.

Institutional participation has seen a notable uptick, with increased interest from domestic mutual funds and Alternative Investment Funds (AIFs). MCX has successfully onboarded 17 new members during the year and maintains a healthy pipeline of prospective members. The company is also actively working to facilitate the inclusion of commodities in multi-asset fund schemes, with several launches expected in the coming months. The electricity derivatives contract, a relatively new offering, has shown promising traction, recording an ADT of INR 34 crore and attracting broad participation from over 80 members.

Navigating Challenges and Future Outlook

Despite the strong financial and operational performance, MCX faced a technical issue on October 28, 2025, which led to delayed trading. This incident, the second in four months, has drawn regulatory attention. Management acknowledged the issue, attributing it to a predefined parameter limit in gateway services, and confirmed that steps have been taken to resolve it across both main and disaster recovery sites. The company is actively engaging with SEBI on this matter, adhering to standard processes.

Looking ahead, MCX remains optimistic about the long-term growth potential of the Indian commodity markets, viewing them as having significant headroom compared to equity markets globally. The management's focus on product innovation, technological advancement, and expanding market participation positions MCX to capitalize on this growth. While operational stability and regulatory compliance will be key areas of focus, the company's strategic initiatives and robust market activity suggest a continued positive trajectory.