MCX Q2 Results - Motilal Oswal Retains 'Buy' Rating On The Stock; Sees 15% Upside Potential

Motilal Oswal Report

Multi Commodity Exchange of India Ltd. posted 73% YoY growth in operating revenue to Rs 2.9 billion (5% above our estimate) in Q2 FY25. Operating revenue rose 67% YoY in H1 FY25.

Revenue growth was driven by a surge in volumes, which jumped 114% YoY. Futures volumes grew 46% YoY to Rs 17.5 trillion, while options volumes surged 129% YoY to Rs 126 trillion during the quarter.

Ebit stood at Rs 1.7 billion (versus Ebit loss of Rs 353 million in Q2 FY24), which was 4% above our estimates.

MCX reported PAT of Rs 1.5 billion (versus a loss of Rs 191 million in Q2 FY24), which grew 39% sequentially and was 7% higher than our estimate. For H1 FY25, MCX’s PAT was Rs 2.6 billion (versus Rs 6 million in H1 FY24).

We raise our FY25/26 EPS estimates by 10%/11%, factoring in the surge in volumes witnessed in H1 FY25, offset by a rise in SGF contribution. We reiterate our Buy rating on the stock with a one-year target price of Rs 7,600 (premised on 44 times Sep’26E earnings per share).

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