Multi Commodity Exchange of India shares jumped over 4% on Thursday as gold, silver and copper futures rose following a surprise liquidity support announcement by the US Treasury. The stock's rally was driven by strong financial performance that exceeded market expectations. According to Moneycontrol, the company reported consolidated revenue of ₹702 crore for Q1 FY27, representing an 88% year-on-year growth from ₹373.21 crore in the corresponding quarter of the previous year. Net profit surged 102.87% to ₹413.22 crore compared to ₹203.69 crore in Q1 FY26, while Earnings Per Share (EPS) stood at ₹16.21 versus ₹39.84 in the year-ago period.
Thursday's sharp surge came as metal futures climbed on the domestic commodities exchange, with gold futures for October delivery on MCX rising above ₹1.58 lakh per 10 grams. Gold's December contracts climbed above ₹1.60 lakh per 10 grams, while February contracts traded above ₹1.62 lakh per 10 grams. Silver and copper futures also traded higher as the rally came as US Treasury yields fell following the Treasury Department's announcement that it would double the size of its liquidity-support buyback operations for longer-dated notes and bonds. Meanwhile, the US dollar remained muted, making dollar-priced metals cheaper for buyers holding other currencies. In the latest session, silver futures for September 2026 delivery were up ₹1,915 at ₹2,45,158 per kg, while gold futures for October 2026 delivery rose by ₹1,205 to ₹1,60,630 per 10 grams.
The stock has delivered stellar returns of around 932% in three years and 970% in five years, demonstrating exceptional long-term growth momentum. MCX shares surged to ₹3,211 on Friday, with the stock gaining 15% in a month and 45% so far this year. Over the past year, the stock has risen more than 101%, reflecting strong investor confidence in the company's growth trajectory. MCX shares rose in three sessions to ₹3,211, tracking a third straight session of gains in gold and silver prices amid a weaker US dollar and easing concerns over long-term yields. UBS has upgraded MCX to 'Buy' and raised its target price to ₹3,800 from previous levels, citing a re-rating opportunity and potential growth catalysts from regulatory developments.
HDFC Securities has reaffirmed its 'Buy' rating on MCX with a target price of ₹3,600, implying a potential upside of 18.42% from the stock's August 18 close of ₹3,040. The brokerage expects regulatory easing to significantly boost growth prospects, with FPI participation in deliverable contracts and new bullion and metals index options driving the next leg of expansion. According to The Economic Times, the FPI consultation paper proposes allowing FPIs in non-agricultural index derivatives and physically deliverable contracts such as gold, silver and base metals, subject to a pre-tender exit condition. FPIs currently account for only around 3% of MCX volumes versus 16% at equity exchanges, with potential for significant growth in bullion and metals trading. HDFC Securities expects a potential 20-25% increase in options premium and sees significant structural headroom for volume growth, given that commodity derivatives remain a small share of overall equity-market trading.
JPMorgan also upgraded MCX to 'Overweight' from 'Neutral' and hiked its target price to ₹3,500 from ₹2,560. UBS expects average daily transaction-fee revenue of ₹98 million in both FY27 and FY28, with operating leverage lifting MCX's Ebitda margin by four percentage points to 77% in FY28. According to The Economic Times, key regulatory developments could serve as important medium-term growth catalysts, with Sebi's consultation paper proposing FPI participation expected to structurally deepen the commodity market. Sebi's recent consultation paper proposing Foreign Portfolio Investment (FPI) participation in physically settled non-agricultural commodity derivatives and index derivatives is expected to support continued volatility in key commodities driven by geopolitical issues in the Middle East. UBS recently upgraded its rating on the shares of MCX to 'Buy' from 'Neutral', raising its target price to ₹3,800 from ₹3,600, following a sharp correction and feeling that the stock now trades at an attractive valuation.
The company has announced a final dividend of ₹8 per share (400%) with an effective date of August 28, 2026, following a final dividend of ₹30 per share (300%) announced on May 8, 2025. A stock split was announced on August 1, 2025, changing the face value from ₹10 to ₹2, effective January 2, 2026. The stock's strong performance reflects investor confidence in MCX's growth trajectory, supported by robust financial results and positive analyst sentiment. With the stock being a constituent of the Nifty Midcap 150 index, the latest results are expected to attract broader market attention and institutional interest. The company recently disclosed the e-voting results of its postal ballot along with the scrutinizer's report on August 15, 2026.
