Multi Commodity Exchange of India (MCX) is witnessing strong growth, driven by rising bullion contracts, new product launches, and technological upgrades, according to a report released on Monday.
Analysts at HDFC Securities have raised MCX’s revenue and earnings-per-share (EPS) estimates by 7–9 per cent and maintained a ‘Buy’ rating, setting a target price of Rs 10,000. The brokerage highlighted that precious metals, particularly gold and silver, are expected to be key contributors to options premiums, a trend that is steadily gaining momentum.
MCX’s options premium average daily turnover (ADTV) rose to approximately Rs 67 billion in October 2025, up from Rs 41 billion in Q2 FY25, largely fueled by increased trading in gold and silver. Bullion now accounts for nearly 60 per cent of total notional volume and 30 per cent of premium ADTV, a sharp rise from 20 per cent and 8 per cent, respectively, a year earlier.
The exchange recently revamped its gold and silver options, introducing monthly expiries and smaller contract sizes, resulting in a seven-fold increase in gold ADTV and a 37-fold surge in silver ADTV year-on-year in September.
Further growth is expected with the upcoming launch of cash-settled index contracts, Metldex and Bulldex, which are likely to attract higher participation from foreign portfolio investors (FPIs) and institutional traders. HDFC Securities projected that bullion could contribute 40 per cent of total premium by Q4 FY27, reducing the concentration risk previously dominated by crude and natural gas contracts, which together accounted for 85 per cent of the share.
MCX is projected to achieve a revenue and profit-after-tax (PAT) compound annual growth rate (CAGR) of 27 per cent and 33 per cent, respectively, between FY25 and FY28. While analysts note a soft Q2 FY26 outlook, the exchange is expected to maintain sustained options growth and a strong medium-term earnings trajectory.
This performance underscores MCX’s shift toward diversified products, particularly in bullion, and the impact of strategic technological and product initiatives on market participation and profitability.
