MCX share price slumped 7% on Wednesday, 4 November, despite the exchange reporting a more than two-fold jump in consolidated net profit for the September quarter of FY27. The sharp decline came even as the commodity exchange posted robust growth in income and trading volumes. Technical analysts attributed the decline to profit booking following the recent rally.
Multi Commodity Exchange of India (MCX) reported a consolidated net profit of ₹455 crore for Q2 FY27, compared with ₹197.47 crore in the corresponding quarter last year, according to its regulatory filing.
The exchange’s total income surged to ₹799.66 crore during the quarter, up from ₹374.23 crore a year earlier. However, its expenses also increased to ₹211.36 crore from ₹150.41 crore in the year-ago period.
MCX continued to witness strong trading activity during the quarter. The average daily turnover (ADT) of futures rose to ₹62,819 crore, while the ADT of options stood at ₹12,00,129 crore.
In terms of physical deliveries, the exchange recorded 5.68 tonnes of gold, 199.91 tonnes of silver and 34,707 tonnes of base metals during the quarter.
Commenting on the performance, Praveena Rai, MD and CEO of MCX, said the exchange’s strong Q2 FY27 performance reflected continued trust from market participants and its growing relevance in the evolving commodity ecosystem.
She attributed the growth to sustained momentum across product segments, increased market participation and ongoing efforts to expand the exchange’s product portfolio.
Looking ahead, Rai said MCX would focus on widening market participation, broadening its product offerings and investing in technology and innovation to build on the growth momentum.
MCX share price
MCX share price today opened at ₹3,395 apiece on the BSE, the stock touched an intraday high of ₹3,423.15 per share, and an intraday low of ₹3,252.50 apiece.
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, attributed the decline to profit-booking following the sharp rally in the previous session. He said MCX shares faced resistance around ₹3,500, with the latest sell-off wiping out the previous session’s gains. The uptrend is likely to resume once the stock decisively moves above ₹3,500. On the downside, ₹3,200, which coincides with the 20-day EMA, is a key support level; a break below it could extend the weakness.
Gaurav Arora, Head of Research at SAHI, said MCX has witnessed strong buying interest over the past few sessions. The stock had formed a reverse symmetrical triangle pattern and was trading near its upper boundary, where it faced resistance around ₹3,538. The stock witnessed some profit-booking in Wednesday’s session, with ₹3,225 emerging as the key support level to watch.
Arora said the current decline appears to be a pullback rather than a deterioration in the broader technical structure. However, the recent selling pressure needs to be absorbed before the stock can resume its upward momentum.
On the fundamental front, he noted that MCX delivered a strong performance in Q2 FY27, with revenue rising around 114% year-on-year to ₹800 crore and profit after tax increasing nearly 131% to ₹455 crore. EBITDA margins also remained healthy at around 77–78%.
However, Arora cautioned that much of the strong business performance is already reflected in the stock’s valuation. MCX is trading at a price-to-earnings (P/E) multiple of around 54, nearly twice the sector average. He also highlighted the increase in balance-sheet liabilities alongside the rise in profitability as a factor investors should monitor.
What should investors do?
Arora recommends that existing investors stay invested while maintaining trailing stop-loss levels. He said the technical structure remains intact as long as the stock holds above ₹3,225. However, a closing break below this level would warrant greater caution.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
