Why did MCX share price slump 7% despite a 54% jump in Q4 net profit? Key reasons explained

MCX stock price in focus today: Multi Commodity Exchange of India (MCX)—the country’s leading commodity derivatives exchange — saw its share price tumble nearly 7% in Thursday’s trade (May 9), hitting a two-week low of ₹5,600 apiece. It emerged as the worst performer among Nifty 500 stocks during the session.

This sharp fall in MCX’s share price came after the company’s March-quarter (Q4FY25) profitability was impacted by rising costs. MCX reported a Q4FY25 net profit of ₹135 crore, a 54% YoY increase compared to ₹87.87 crore in the same period last year. However, net profit declined 15% sequentially, from ₹160.04 crore in Q3FY25.

Total expenses for the quarter rose 64% YoY to ₹152 crore, primarily due to higher technology costs. Staff costs alone rose 50% YoY to ₹46 crore, exceeding analysts’ expectations.

Revenue from operations jumped 60.68% YoY to ₹320 crore, compared to ₹199.45 crore a year ago. On the operating front, earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at ₹189.35 crore, compared to ₹216.1 crore in Q3FY25 and ₹120.33 crore in Q4FY24.

In terms of trading volumes, options’ notional average daily turnover (ADT) surged to ₹220,936 crore, up 94% YoY and 7% QoQ. However, options’ premium ADT for the quarter fell to ₹3,288.63 crore from ₹3,613.14 crore in the previous quarter, though it remained significantly higher than ₹2,038.84 crore a year ago, as per the company's Q4 earnings' filing. 

For the full fiscal year, MCX’s total income rose by ₹450 crore to ₹1,208.86 crore, a growth of approximately 59% YoY. EBITDA stood at ₹761.51 crore, up 445% YoY from ₹139.70 crore. Net profit jumped 574% YoY to ₹560.04 crore from ₹83.11 crore in the previous fiscal.

About MCX

Operational since 2003, the Multi Commodity Exchange of India (MCX) is India’s premier commodity derivatives exchange, commanding around 98% market share in terms of the value of commodity futures contracts traded in FY2024-25.

MCX offers trading across a diverse range of commodities, including bullion, energy, base metals, agri-commodities, and sectoral commodity indices. The exchange has strategic alliances with various international exchanges and Indian as well as global trade associations.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.