MCX Shares Drop 11% Despite Strong Q3 Results

🔸Published: 21 Jan 2025 04:21 PM

🔸Updated: 10 Jun 2025 04:49 PM

MCX shares fell 11.3% on January 21, 2025, despite reporting strong Q3FY25 results with a 57.4% YoY revenue increase and a profit turnaround. The company’s market share remains dominant, but its stock has underperformed over the past year, dropping 13% compared to the Sensex’s 9.5% rise.

Shares of the Multi Commodity Exchange (MCX) dropped by 11.3% on Tuesday, January 21, 2025, reaching an intraday low of Rs 5,333. This decline occurred despite the company posting robust results for the third quarter of FY25. By around 10:02 AM, the stock was trading at Rs 5,552.15 on the Bombay Stock Exchange (BSE), marking a 7.73% decrease.

In comparison, the broader market index, the BSE Sensex, fell by 0.38% to 76,777.61. MCX's market capitalization stood at Rs 28,390.28 crore, with a 52-week high of Rs 7,046.70 per share and a 52-week low of Rs 2,917.

On January 20, 2025, after market hours, MCX released its Q3 results. The company reported a strong turnaround, posting a profit of Rs 160.04 crore for the quarter, compared to a loss of Rs 5.35 crore during the same period last year.

This positive performance was supported by a 57.4% year-on-year (YoY) increase in revenue, which surged to Rs 301 crore from Rs 192 crore in Q3FY24. The total income for the quarter was Rs 324 crore, up from Rs 311 crore in the previous quarter, while operating income rose to Rs 301 crore from Rs 286 crore in Q2 FY24-25.

EBITDA for the quarter ending December 31, 2024, also showed a healthy growth, rising to Rs 216 crore from Rs 205 crore in the previous quarter. The EBITDA margin stood at 67%, while the profit after tax (PAT) margin was a strong 49%.

Additionally, the company reported impressive growth in its options business, with the average daily turnover (ADT) increasing to Rs 2,07,090 crore from Rs 1,93,309 crore in the previous quarter. The average premium turnover also saw an uptick, rising to Rs 3,613 crore from Rs 3,264 crore in Q2 FY24-25. The ADT for futures grew to Rs 28,410 crore in Q3 FY24-25, up from Rs 26,941 crore in Q2.

MCX, which holds a dominant market share of around 97.97% in commodity futures contracts traded during the financial year 2024-25 (from April 2024 to December 2024), continues to play a vital role in India’s commodity market ecosystem. The exchange facilitates fair price discovery and risk management through its electronic platform.

However, despite the strong financial performance, MCX shares have underperformed over the past year, falling 13%, while the Sensex has gained 9.5%.

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