At a Glance
MCX just reminded everyone why monopolies are cool (for them, not you). In Q1 FY26, the commodity exchange saw Average Daily Turnover (ADT) hit ₹3.1 lakh Cr (+80% YoY), with bullion trades going parabolic (+242% YoY). PAT doubled to ₹203 Cr (Net Margin 50%), while EBITDA margin ballooned to 68%. With book value at ₹370 and the stock peaking at ₹9,075, MCX is basically the Apple of commodities – high margins, high market share, and SEBI-approved dominance.
Introduction
The Multi Commodity Exchange (MCX) is where India’s gold bugs, oil traders, and hedgers party. Think of it as Dalal Street’s Vegas but with compliance. Q1 FY26 showed fireworks – revenue, profits, and options turnover all spiked. Precious metals ruled the floor, while agri contracts barely existed. This is not a company that competes; it owns.
Business Model (WTF Do They Even Do?)
MCX operates India’s largest commodity derivatives platform:
- Products: Futures & options on gold, silver, crude oil, natural gas, base metals, and indices.
- Revenue: Transaction charges, clearing fees, technology services.
- Clearing: Through its subsidiary MCXCCL with a ₹965 Cr Settlement Guarantee Fund.
In short, it’s the toll booth for commodity trading. Every trade pays MCX.
Financials Overview
Q1 FY26 (Consolidated)
- Operating Revenue: ₹373 Cr (+59% YoY)
- Total Revenue: ₹406 Cr (+60% YoY)
- EBITDA: ₹274 Cr (+81% YoY, margin 68%)
- PAT: ₹203 Cr (+83% YoY)
- EPS: ₹39.8
Trading Metrics
- Futures ADT: ₹40,547 Cr (+56% YoY)
- Options ADT: ₹2.7 lakh Cr (+84% YoY)
Comment: Futures steady, options are the real gold mine.
Valuation
1. P/E Method
- EPS (TTM): ₹109.8
- CMP: ₹9,075 → P/E = 82x
2. EV/EBITDA
- EV ≈ MCap ₹46,000 Cr
- EBITDA (TTM) ₹762 Cr → EV/EBITDA ≈ 60x
3. DCF (Quick Take)
- Even with 20% CAGR, intrinsic range ₹5,500–₹7,000.
Verdict: Priced like a tech monopoly, not an exchange. Margin of safety? LOL.
What’s Cooking – News, Triggers, Drama
- Gold Rush: Bullion turnover +242% YoY.
- New Products: Electricity derivatives, index options.
- Regulatory Tailwinds: FPIs, MFs participation allowed.
- Tech Shift: New platform live since Oct 2023 – working flawlessly.
Balance Sheet – Strong & Clean
| Assets | ₹ Cr |
|---|---|
| Total Assets | 3,543 |
| Core SGF | 965 |
| Cash | High |
| Liabilities | ₹ Cr |
|---|---|
| Total Liabilities | 3,543 |
| Debt | Negligible |
| Net Worth | ₹370/share |
Remark: Balance sheet cleaner than your WhatsApp chat history.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Investing (₹ Cr) | Financing (₹ Cr) |
|---|---|---|---|
| FY24 | 252 | -133 | -140 |
| FY25 | 317 | -488 | -42 |
Remark: Heavy investing in tech and clearing corp; ops cash still solid.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 50%+ |
| ROCE | 40%+ |
| P/E | 82x |
| PAT Margin | 50% |
| D/E | 0 |
Remark: Financially hotter than crude oil in July.
P&L Breakdown – Show Me the Money
| Quarter | Revenue ₹ Cr | EBITDA ₹ Cr | PAT ₹ Cr |
|---|---|---|---|
| Q1 FY25 | 234 | 151 | 111 |
| Q4 FY25 | 291 | 189 | 135 |
| Q1 FY26 | 373 | 274 | 203 |
Remark: Every metric is moonwalking.
Peer Comparison
| Exchange | Revenue ₹ Cr | PAT ₹ Cr | P/E |
|---|---|---|---|
| NSE (unlisted) | ~10,000 | ~5,000 | NA |
| BSE | 500 | 250 | 50x |
| MCX | 1,113 | 560 | 82x |
Remark: MCX trades at premium to BSE, justified by monopoly.
Miscellaneous – Shareholding, Promoters
- Promoters: None (public exchange)
- Top Holder: Kotak Mahindra Bank (15%)
- FII Ownership: Global funds nibbling.
- Rule: No shareholder >5% without SEBI nod.
EduInvesting Verdict™
MCX is the gatekeeper of India’s commodity markets – and gatekeepers don’t come cheap. With 80%+ YoY turnover growth, 50% net margins, and zero debt, it’s a money machine. But at 82x earnings, you’re paying for perfection.
SWOT
- Strengths: Monopoly, regulatory moat, high margins.
- Weaknesses: Valuation, tech risks.
- Opportunities: Electricity derivatives, global tie-ups.
- Threats: SEBI reforms, competition (if any).
Final Word:
MCX is a Ferrari in neutral – revving like crazy, but at this price, one speed bump (regulation, volumes drop) and investors fly out the windshield.
Written by EduInvesting Team | 01 Aug 2025
SEO Tags
MCX, Multi Commodity Exchange, Q1 FY26 Results, Commodity Derivatives, Bullion Trading
