MCX Shares Surge Near 6% to Hit Lifetime High After SEBI Nod for Electricity Derivatives

Multi Commodity Exchange shares surged up to 5.8% on the National Stock Exchange today to touch its life time high of ₹7,845 after the exchange received Securities and Exchange Board of India’s approval to launch Electricity Derivatives. This marks “a significant milestone in the evolution of India’s Energy trading landscape,” MCX said in a filing made to exchanges on Friday.

The said derivatives contracts will enable generators, distribution companies, and large consumers to hedge against price volatility and effectively manage price risks, by enhancing efficiency in the power market. Power price have become more dynamic due to renewable and market-based reforms.

“With India’s growing focus on renewable energy and open access power markets, electricity derivatives can serve as a vital bridge between the physical and financial sectors," Praveena Rai, managing director and chief executive officer of MCX, said. 

By using derivatives to fix future electricity prices, distribution companies can better plan their power procurement, control costs, and achieve greater budget accuracy. This, in turn, may result in more stable consumer tariffs, strengthen their financial position, lessen reliance on state subsidies, and boost overall operational performance.

The shares have risen 116% in the last one year and nearly 31% in the last one month. The stock has gained nearly 26% in 2025 so far.

MCX posted a 54% rise in consolidated net profit for the fourth quarter of FY25, reaching Rs 135.46 crore, compared to RS 87.87 crore in the same period last year. The growth was driven by a strong increase in its total income. Total income for the March quarter jumped 61% to Rs 320.49 crore, up from ₹199.45 crore a year ago. Meanwhile, expenses rose to ₹152.96 crore from ₹92.96 crore in the year-ago quarter.

For the full FY25, the exchange reported a consolidated net profit of ₹560.04 crore—a more than six-fold jump from ₹83.11 crore in the previous year. The board also recommended a final dividend of ₹30 per share for FY25.