AI-generated · cited to primary sources · not investment advice · How we research
Multi Comm. Exc.
Our verdict on Multi Comm. Exc. isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
Management confirmed the launch of monthly options on silver for both the 30 kg main contract and the 5 kg mini contract during the quarter. (4 met across 4 tracked commitments)
“First Exchange to launch Electricity futures contract in India”
Management confirmed the launch of options on silver products during the quarter. (3 met across 3 tracked commitments)
“So, when I spoke about this pipeline of products that we are going to put into the calendar, we do expect the index options to be a part of that.”
See the full cited Management analysis of Multi Comm. Exc.
How durable is the business?
Options trading volume has seen explosive growth, with Average Daily Turnover (ADT) more than doubling year-over-year, solidifying its position as the primary growth engine. (5 expanding across 1 engine)
“Yes. Chintan, the revenue from futures was INR 227 crores for this quarter and options INR 380 crores.”
Options revenue has significantly expanded, now contributing INR 179 crores for the quarter, driven by a doubling of total average daily throughput (ADT). (4 expanding across 1 engine)
“Yes. Chintan, the revenue from futures was INR 227 crores for this quarter and options INR 380 crores.”
See the full cited Business Model analysis of Multi Comm. Exc.
Where does growth come from?
The average daily throughput has more than doubled, showing explosive growth from INR 1 trillion to INR 2.2 trillion. (5 accelerating across 5 signals)
“Our average daily turnover in futures and options rose to INR 7.5 lakh crores... this is a year-on-year growth of about 220%.”
Consolidated income reached INR 1,208 crores for FY25, representing a 59% YoY growth. The momentum is accelerating as Q4 FY25 alone saw a 61% growth compared to Q4 FY24. (5 accelerating across 5 signals, 1 leading indicator)
“For the quarter ended December 31, 2025, our consolidated revenue from operations grew by 121% year-on-year to INR 666 crores”
See the full cited Future Growth analysis of Multi Comm. Exc.
What could break the thesis?
The shift toward Options is accelerating. Options Average Daily Turnover (Notional) grew 115% YoY to Rs. 1,91,910 Cr, while Futures grew only 38%. Options now represent the vast majority of the exchange's volume activity. (5 intensifying, 1 high-severity)
“Gold + Silver = 78% of Futures Turnover”
The risk is intensifying as competitors like NSE have reportedly received in-principle approval for electricity futures, a key growth area for MCX. Management is actively disputing the status of these approvals while preparing their own product pipeline. (1 intensifying, 2 stable, 1 high-severity)
“Parikshit, competition risk does exist because other exchanges are also vying for share in this space. So we are cognizant of it, and we respect the environment in which we are operating.”
See the full cited Risk analysis of Multi Comm. Exc.
Read the full thesis on Multi Comm. Exc.
AI-generated informational research only. ThesisLoop is not investment advice, a stock recommendation, or a guarantee of returns.