MCX shares fall 4% after Q1 profit falls 22% QoQ to Rs 413 crore. What should investors do?

On a quarterly basis, profit after tax (PAT) declined 22% to Rs 413 crore, while revenue from operations fell 21%. However, profit surged 103% year-on-year (YoY).

Q1 financial performance

The company’s revenue from operations rose 88% year-on-year to Rs 702 crore in the April to June quarter, compared with Rs 373 crore in Q1 FY26, supported by a sharp surge in trading volumes across its derivative segments. Operating performance also remained strong, with EBITDA increasing 98% year-on-year to Rs 544 crore, while EBITDA margin stood at 72%. Total income for the quarter reached Rs 752 crore, marking an 85% year-on-year expansion.

However, the pressure on the stock comes as the exchange saw sequential moderation compared to the previous quarter. On a quarter-on-quarter basis, revenue from operations dropped 21% from Rs 889 crore in Q4 FY26. EBITDA margin also contracted slightly from 76% recorded in the preceding quarter.

Operational milestones and volume growth

On the operational front, average daily turnover in futures and options jumped 238% year-on-year to Rs 10.5 lakh crore in Q1 FY27, up from Rs 3.1 lakh crore in the year-ago period. Options ADT recorded a 266% growth to Rs 9.90 lakh crore, while futures ADT grew 47% to Rs 59,674 crore. Total active traded clients on the platform nearly doubled during the quarter to 13.72 lakhs compared with 7.03 lakhs in Q1 FY26.

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MCX also recorded robust physical deliveries during the quarter, including 6.3 metric tonnes of gold, 122 metric tonnes of silver, and 20,700 metric tonnes of base metals. The exchange successfully launched the Silver 100gm Futures contract on June 1, 2026, and expanded its Good Delivery norms to include domestic silver and gold refiners in July 2026 as part of efforts to reduce import dependency.

Market position and strategic outlook

Commenting on the results, Praveena Rai, Managing Director and CEO of MCX, noted that the exchange entered the new financial year with strong momentum, driven by growing volumes across markets and increasing relevance of commodity derivatives for hedging and investment. She added that MCX remains focused on expanding participation, introducing new products, and strengthening technology capabilities.The exchange continues to hold a dominant position in the domestic market with a share of over 98.5% in commodity futures contracts traded during the quarter. Additionally, MCX remains the world’s largest Commodity Options Exchange and the fourth largest Commodity Derivatives Exchange by number of contracts traded, according to FIA 2025 data.

Analyst view and valuation

Domestic brokerage firm Motilal Oswal noted that MCX continues to strengthen its product pipeline across metals, energy, and commodity indices. According to the brokerage, the exchange’s near-term focus is on stabilizing recently launched contracts, with future launches to be timed based on internal readiness, market appetite, and regulatory processes.

Motilal Oswal expects the exchange’s revenue, EBITDA, and PAT to clock a compound annual growth rate (CAGR) of 19%, 19%, and 21%, respectively, over the FY26 to FY28 period.