Shares of Multi Commodity Exchange (MCX) rallied over 5% on August 4, driven by strong Q1 FY26 earnings and the announcement of a 1:5 stock split. The bullish sentiment around MCX had a ripple effect across the capital markets sector, lifting several related stocks and the broader index.
“MCX shares saw strong buying interest after reporting an 83% year-on-year rise in net profit to ₹203 crore in Q1 FY26.”
The positive performance also pushed the Nifty Capital Markets index nearly 2% higher in early trade, reaching an intraday high of around 4,380. Stocks like CDSL, Aditya Birla Sun Life AMC, CAMS, and Anand Rathi Wealth Management followed the trend, rising up to 3%.
Q1 FY26: Earnings Beat Expectations
MCX’s financial report for the April–June quarter showcased an 83% YoY increase in net profit, up from ₹111 crore in Q1 FY25 to ₹203 crore this year.
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Revenue from operations rose 59% YoY, climbing from ₹234 crore to ₹373 crore.
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EBITDA stood at ₹274 crore, marking a solid operational performance.
These numbers exceeded street expectations and reassured investors about MCX’s growth momentum.
“A strong earnings beat coupled with operational efficiency has lifted investor confidence in MCX’s business model.”
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1:5 Stock Split Announced
In a move aimed at improving stock accessibility for retail investors, the MCX board approved a 1:5 stock split. This means the face value of each share will be reduced from ₹10 to ₹2, making the stock more affordable post-split.
“The stock split is subject to shareholder and regulatory approvals,” the company clarified.
Brokerage View: Valuation Still a Concern
Despite the upbeat numbers, Morgan Stanley retained an ‘underweight’ rating on MCX stock, assigning a target price of ₹5,750 per share — indicating a possible 24% downside from the stock’s previous closing of ₹7,594.
The global brokerage acknowledged that Q1 profit beat expectations by 4%, but flagged concerns over high valuation and revenue concentration as potential risks.
“While the results were strong, analysts remain cautious due to premium valuation levels,” said Morgan Stanley.
Stock Performance Snapshot
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Current share price: ₹7,994.50 on NSE
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Past 1 month: Down ~10%
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Past 6 months: Up over 36%
Click here to explore:MCX Share
