MCX Q1 In Line But Valuation Still Expensive, Says Morgan Stanley

Multi Commodity Exchange of India Ltd. reported a strong set of number for its first quarter result FY26, with a 50% spike in its net profit. Morgan Stanley noted that the numbers were largely in line but maintained its "underweight" rating for the company

MCX Q1 Results Highlights

• Revenue up 28.1% to Rs 373.21 crore versus Rs 291.33 crore

• Net profit up 50% to Rs 203.19 crore versus Rs 135.46 crore

• Ebitda up 51% to Rs 241.66 crore versus Rs 160.19 crore

• Margin at 64.8% versus 55%

The brokerage noted that the company's profit after tax was a beat by 4% compared to its estimates, with LSEG Workspace consensus bear by 4%, and Visible consensus beat by 1%.

However, the brokerage noted that higher employee expenses and contributions to statutory funds led to Core Ebitda miss at 2% below the estimates.

It also noted that average daily transaction revenues have reduced sharply, from Rs 525 Lakh in 1QF26 to Rs 456 Lakh in Jul-25.

Morgan Stanley said, "Our Underweight rating is driven by expensive valuation amid low conviction on the sustainability of revenues that are significantly concentrated in a few commodities."

Along with its financial report the company also approved a plan for a stock split in the ratio of 1:5, according to an exchange filing. This is the company's first-ever stock split. The stocks of Rs 10 per share face value will be reduced to Rs 2 per share face value.