Multi Commodity Exchange of India Ltd (MCX) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Multi Commodity Exchange of India Limited Q2 FY27 earnings conference call. Joining us on the call are Miss Praveena Rai, Managing Director and Chief Executive Officer, MCX. Mr. Manoj Jain, Executive Director, Regulatory Compliance, Risk Management, and Investor Grievance, MCX. Mr. Sanjay Rajpal, Executive Director, Critical Operations, MCX. Mr. Chandresh Shah, Chief Financial Officer, MCX. Mr. Praveen DG, Chief Compliance Officer, MCX, and Mr. Ramesh Varakhedkar, Chief Business Officer, MCX. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Miss Praveena Rai, MD and CEO, MCX. Thank you, and over to you, ma'am.
Praveena Rai (Multi Commodity Exchange of India Ltd): Hello. The MCX management team and I are very happy to give a warm welcome to our shareholders, investors, and analysts and all shareholders to this MCX earnings conference call for Q2 FY27. So, we are very happy to bring results for FY27, another quarter with strong operational and financial performance. This strong performance in Q2 reflects the continued trust of market participants and the growing relevance of the exchange in our evolving commodity ecosystem. During the half year, our consolidated total income increased to 1,600 crores, a 99% growth year-on-year, while revenue from operations grew to 1,501 crore, a 101% increase year-on-year, with EBITDA increasing to 663 crores. This results in an EBITDA margin of 75% and PAT increased to 863 868 crores with a 117% year-on-year increase. These results demonstrate the scalability of our business model.
Praveena Rai (Multi Commodity Exchange of India Ltd): across our markets the average daily turnover grew to 12.6 lakh crores, and this a 20% increase from last quarter at 10 lakhs, and nearly double of what we saw same quarter last year. This reflects the wider adoption of commodity derivatives by market participants as well as improved liquidity. Client participation has been encouraging. Last year you'll recollect that our number was 20.9 traded clients, 20.9 lakh traded clients, and in the first half of this year we've come very close to that number at 19.8 lakh traded clients. This highlights the increased awareness and acceptance of commodity derivatives as an effective tool for hedging and investments. Earlier in the year we launched the silver 100 g futures contract. That's seen good traction. We have more than about a 100 crores of ADT running on this new contract. The gold 10 g futures that was launched last year is also proving to be popular. Silver with micro options, 30 kg, 5 kg and 1 kg are all in very significant play. There are more products at various stages of the process in terms of a launch pipeline and announcements will be made at the appropriate time. To facilitate a longer planning horizon and better hedging through extended periods, and taking feedback from market participants, MCX has also commenced far-dated futures contracts in several commodities. This is required by both corporate as well as financial institutional participants. So, futures contracts now extend expiring up to 12 months in aluminum, copper, and zinc, and up to 18 months are available in the crude oil contracts. To provide certainty of delivery allocation location, single and distinct delivery locations have further been introduced. So you recollect that this action was taken for some of the metals earlier in the year as well as last year. Now for lead and zinc, the delivery locations have consolidated to Chennai and Thane respectfully, whereas for the mini contract of lead and zinc, they are at Palwal and Kolkata, respectively. These changes in delivery location are effective from November '26. We also expect that this will smoothen out certain operational challenges requiring multiple GST registrations of suppliers and buyers, so they can focus on the location pertaining to their specific contract of interest. We hope these changes in the contract specification will ease and incentivize hedgers to further use ETCD, that is exchange traded commodity derivatives, to manage their commodity price risk. We've seen a very healthy growth in hedgers. The hedgers in bullion include, you know, importers, traders, jewellers, you know, we have pretty much most of the large players in the ecosystem who hedge their purchase or supply or inventory on the exchange. Similarly, in the case of energy, oil and gas, there are a number of hedgers, both SMEs as well as industrial organizations. For example, this would include some of the glass fabricators and so on, who extensively used the contract to hedge their risk. On the metals, we have a very vibrant participation from SMEs, from fabricators, from traders, as well as some of the larger organizations that have now started hedging on the exchange. Agriculture is a growing space. We've seen good deliveries on cardamom, as well as some of the other agriculture products. Now, we also conducted the Global Commodity Conclave in the month of August. So, this was first-of-its-kind conclave held over three days. The objective of the conclave was really to bring financial and physical market participants together. It he helped in really increasing the awareness of how these two groups of players can work more closely together and broadly improve participation for hedging purposes across the board. We have received extremely good feedback on the exchange, which saw very wide participation, both from within and outside the country.
Praveena Rai (Multi Commodity Exchange of India Ltd): Besides this, I'm very happy to announce that as per the regulatory requirement, we required two executive directors, one leading vertical one, which is technology and market operations. So, we have Sanjay Rajpal, who's joined us. He's here at the call with us and he joins from Amazon, having completed very deep tech roles covering operations and development at very high degrees of scale. We look forward to him adding a lot of value to our technology and operations at the exchange. Similarly, at ED 2, which is the regulatory and risk and compliances department, we have Manoj Jain. Manoj Jain was promoted from chief compliance officer to executive director and looking forward to his contribution on the board as well as leading this function. We have our chief business officer also, Ramesh, on this call, who has joined the organization earlier this month and our chief of innovation, who will be leading some of the AI and innovation activities that we are currently in the midst of. The our chief risk officer, DG Praveen, has also been given the additional responsibility of the chief compliance officer while he continues in his interim role as the chief risk officer. So, these are very strong additions and changes in the leadership, which we expect will really support the strategic direction of the organization. Our technology scaling has been significant in the last few months, where we have nearly doubled our kind of capacity with reference to the kind of peaks that we can look at on a per day basis, and we've already seen the kind of numbers that we are able to support with this in a very seamless manner. For over two decades, MCX has played a very pivotal role in strengthening India's commodity markets through transparent price discovery and effective risk management solutions. As we look forward, we continue to stay focused on the strong foundation. We want to deepen the market participation, expand our portfolio, and invest further in technology and innovation. Our thanks to our regulators, members, participants, investors, our entire MCX team, and all stakeholders for their continued trust and support. Thank you.
Chandresh Shah (Multi Commodity Exchange of India Ltd): Rhea, we can start the Q&A.
Moderator: Yes, sir. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants, you are requested to restrict your questions to one or two question per participant. Should you have a follow-up question, we request you to rejoin the queue. First question is from the line of Sameet Sinha from Macquarie. Please go ahead.
Sameet Sinha (Macquarie): Yes. Thank you very much. Quick question. I mean, recently, SEBI wrote about, you know, improving or giving FPIs more access to kind of the products that you offer. Can you provide us a sense of, you know, how big that could be, and how that could open up more market? Have you had any initial discussions with FPIs, any sense of demand and any sense of timing? And my second question is, you know, you had a very strong second half last year. And, and I know you don't give guidance, but if you can help us think through how we should think about how could the second half can can can emerge? That'll be great. Thank you.
Praveena Rai (Multi Commodity Exchange of India Ltd): Thank you, Sameet. I think when it comes to FPIs, of course, the regulatory consultation paper was announced after a lot of due diligence with all the concerned stakeholders. We do believe that FPIs are looking to play a role when it comes to the how the Indian markets are really working when it comes to commodities. So, we do have
Praveena Rai (Multi Commodity Exchange of India Ltd): participation now. We have about 250 odd FPIs on-boarded. We have FPI volumes coming in on the contracts where they are permitted currently, which is on the cash settled energy contracts. So, we do expect over time as they get on-boarded, once the final circulars are out, that they will play a role, increasing role in the exchange for commodity derivatives. Your second question on how we really see H2 playing out. I think, as you rightly said, if we look at the trajectory that we've seen, I think we see a healthy improvement and healthy increase in the baseline when it comes to participation, products and not just certain segments of participation, but participation across segments. And I think this gives us the confidence that there is a new baseline with every step of growth that our business is really seeing here now. Exactly what it will be and how each quarter will play out, of course, will be how the platform serves the purpose. So, the platform serves the purpose to manage price risk in times of volatility. These are all commodities which have a baseline volatility, and then there are times of increased volatility. So, I think these two will both play a role in terms of what exactly to expect out of this.
Sameet Sinha (Macquarie): All right. Thank you.
Moderator: Thank you. Next question is from the line of Prayesh Jain from Motilal Oswal Financial Services Limited. Please go ahead.
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