On Wednesday, Multi Commodity Exchange of India Ltd (MCX) saw its shares tumble 6.89% to Rs 3,252.50. This decline occurred despite the commodity derivatives platform reporting a significant 130% year-on-year (YoY) increase in profit after tax (PAT) for the September quarter (Q2 FY27).
Brokerage Estimates Missed
Financial firm Motilal Oswal Financial Services Ltd (MOFSL) noted that MCX's Q2 FY27 PAT of approximately Rs 450 crore fell 14% short of their projections. MOFSL pointed to elevated operating expenses and a higher tax rate as the primary reasons for this unexpected miss in earnings.
For the entire first half of FY27, MCX's net profit surged by 117% YoY, indicating strong underlying growth despite the quarterly shortfall against estimates.
Operating Revenue and Cost Pressures
MCX's operating revenue for Q2 FY27 reached around Rs 800 crore, marking a 114% YoY increase and a 14% sequential rise. This figure was largely in line with MOFSL's expectations. Over the first half of FY27, operating revenue successfully doubled compared to the previous year.
However, the cost front presented challenges. Staff expenses grew 25% YoY to Rs 56.2 crore, aligning with estimates. Conversely, other expenses saw a substantial 54% YoY surge, reaching Rs 130 crore. This figure was 33% higher than the brokerage's estimates, primarily due to an unexpected Rs 24.8 crore contribution to the Settlement Guarantee Fund (SGF), which MOFSL had not anticipated.
EBITDA Performance
Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter stood at approximately Rs 610 crore, up 151% YoY. Despite this robust growth, EBITDA was 6% below MOFSL's forecast. The EBITDA margin improved to 76.4% from 65.1% in Q2 FY26 but still fell short of MOFSL's 80.4% estimate. Other income, at Rs 51.6 crore, was broadly consistent with the brokerage's expectations.