MCX Shares Surge 5% on Strong Q1 Earnings, Stock Split Plans

Shares of Multi Commodity Exchange of India (MCX) surged 5 % on August 4 buoyed by the company’s robust first-quarter results and announcements for its first-ever stock split.

The commodity exchange reported a consolidated net profit of ₹203.2 crore for the June quarter, up 83% from ₹111 crore a year ago. Operational revenue grew 60% year-on-year to ₹373 crore, its highest ever.

Operational performance also witnessed an improvement, with Ebitda margin expanding by 870 basis points to 64.7%.

MCX’s performance was supported by a growing participation from institutional investors and hedgers, especially in the bullion segment. Average Daily Turnover (ADT) from bullion rose from 23% to 44%, helped by the launch of Gold Mini and Gold Ten Futures. The company also expanded its options offering, launching monthly expiry contracts for Silver and Silver Mini.

CEO Praveena Rai said the company had made a strong start to the financial year, attributing it to “resilience, adaptability, and strategic focus.” She also pointed towards an uptick in interest from MSMEs and physical market players, boosted by product innovation and awareness efforts.

Meanwhile, MCX also recently added electricity futures to its portfolio, touting it as a much-needed tool for hedging against power price volatility. The contracts are cash-settled based on spot prices on the Indian Energy Exchange.

Alongside the earnings, MCX’s board gave a nod for a one-for-five stock split. The move, subject to regulatory and shareholder approval, aims to improve share affordability for retail investors.

A stock split lowers the share price without affecting a company’s overall value, making it more affordable for retail investors. The goal is to boost liquidity, widen investor participation, and support higher trading volumes by reducing the entry barrier.

While MCX stock has gained over 36% in the last six months, it has seen some short-term volatility, falling nearly 11% over the past month. However, the announcement of strong earnings and the stock split plan appears to have given the stock a much needed positive trigger for the stock.