MCX Q2 Results Surprise: Motilal Oswal Reiterates Neutral Stance, What Investors Need to Know!

Motilal Oswal's latest research report provides an in-depth analysis of Multi Commodity Exchange of India Ltd (MCX)'s financial results for the second quarter (2QFY26) and the first half (1HFY26) of the fiscal year.

For 2QFY26, MCX reported an operating revenue of INR3.7 billion, marking a 31% increase compared to the same period last year. Total expenses saw a rise of 23% year-on-year, reaching INR1.3 billion, with notable increases in staff costs (up 37%) and other operational expenses (up 17%). Despite higher costs, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 36% year-on-year to INR2.4 billion. The company's Profit After Tax (PAT) for the quarter was approximately INR2 billion, a 29% increase from the previous year.

Looking at the first half of FY26, MCX's performance was even stronger. Operating revenue jumped 44% to INR7.5 billion, and EBITDA recorded a significant 56% increase, reaching INR4.9 billion. PAT for 1HFY26 surged by 51% to INR4 billion.

Impact: Motilal Oswal has reiterated a Neutral rating on MCX stock, setting a one-year target price of INR10,700. This rating suggests that the brokerage firm believes the stock is fairly valued at current levels, with limited upside or downside potential in the near term. Investors holding the stock might consider it a hold, while new investors might wait for a more compelling entry point or a clearer directional signal. The target price is based on 40 times the estimated Earnings Per Share (EPS) for September 2027. The market will be watching MCX's future performance and any strategic moves that could justify a re-evaluation of this Neutral stance. Rating: 5/10

Difficult terms: * Operating Revenue: The total income generated from the primary business operations of a company before any deductions. * YoY (Year-on-Year): A comparison of a company's performance or metrics from a specific period in one year to the same period in the previous year. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance, excluding non-operational expenses like interest and taxes, and non-cash expenses like depreciation and amortization. * PAT (Profit After Tax): The profit remaining after all expenses, including taxes, have been deducted from the company's total revenue. * TP (Target Price): The price level at which a stock analyst or broker expects the stock to trade within a specific timeframe. * EPS (Earnings Per Share): The portion of a company's profit allocated to each outstanding share of common stock.