MCX shares soar 14% in 2 sessions. What’s triggering the rally?

Shares of the Multi Commodity Exchange of India (MCX) rallied as much as 7.5% to their day’s high of Rs 2,605 on the BSE on Wednesday after the company reported a massive 151% year-on-year (YoY) jump in consolidated net profit, which rose to Rs 401 crore for the quarter ended December 31, 2026, from Rs 160 crore in the same period a year earlier. The profit after tax (PAT) is attributable to the owners of the company.

With today’s surge, the stock is up 14% in just trading sessions on the bourses.

Momentum in the counter was further boosted by soaring gold and silver prices. When gold and silver prices rise sharply, volatility usually increases. This attracts hedgers, traders and speculators, leading to more futures and options trading. Higher volumes directly translate into higher transaction fees for MCX, boosting revenues.

In today’s session, MCX Gold futures due February 5, 2026 rose Rs 4,800 or 3% to Rs 1,62,429 per 10 grams. Meanwhile, silver futures for March 5, 2026 delivery surged Rs 21,400 or 6% to Rs 3,77,655 per kg.

In Q3, MCX posted robust operational performance during Q3FY26, with revenue from operations surging 121% YoY to Rs 666 crore, compared to Rs 301 crore in Q3FY25.

On a sequential basis, the company’s bottom line rose 103% from Rs 197 crore in Q2FY26, while revenue also witnessed a 78% quarter-on-quarter increase from Rs 374 crore.

The company reported a 144% year-on-year rise in EBITDA, which stood at Rs 527 crore for the quarter under review, highlighting strong margin expansion and operational leverage.The exchange also recorded significant growth in trading activity. The Average Daily Turnover (ADT) of futures and options increased 224% YoY, reaching Rs 7,50,136 crore in Q3FY26, up from Rs 2,31,821 crore in the same quarter last year.

The bullion segment’s share in ADT rose to 69% quarter-on-quarter, driven by the launch of new variants including Gold Mini and Gold Ten Futures.

Additionally, MCX launched monthly options contracts on the MCX iCOMDEX Bullion Index – MCX BULLDEX, covering both gold and silver, with effect from October 2025, further enhancing its product offerings in the bullion segment.

Domestic brokerage firm Motilal Oswal reiterated its Neutral rating on MCX, with a one-year target price of Rs 2,750, based on a valuation of 38x FY28E EPS. It noted that while bullion continued to contribute a meaningful share of incremental volumes in 3Q, base metals in futures and natural gas in options have also witnessed a sharp pickup over the past few months. Given the recent surge in price volatility, the brokerage expects commodity volumes to normalize, assuming flat volumes in Jan’26 followed by a 20% decline in Feb’26. This is expected to be followed by a gradual recovery, with around 3% month-on-month growth in Mar’26 and about 1% MoM growth thereafter. No material contribution has been assumed from electricity or index contracts.

Commenting on the financial results, Managing Director & CEO Praveena Rai said that MCX’s Q3 results underscore company’s continued momentum and deepening participation across segments. “Guided by the highest level of governance and compliance, we are enhancing product breadth and operational readiness for growth, delivering value to hedgers, investors and members while shaping the future of commodity derivatives,” Rai said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)