Multi Commodity Exchange of India Limited (NSE: MCX) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Unidentified Speaker
Praveena Rai — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Devesh Agarwal — Analyst
Praise Jane — Analyst
Amit Chandra — Analyst
Vikram Raghavan — Analyst
Lavanya Todla — Analyst
Sunil Desai — Analyst
Chintan Sheth — Analyst
Shalini Gupta — Analyst
Aditya Bhatia — Analyst
Aditya Yadav — Analyst
Parikshit Gupta — Analyst
Presentation:
Unidentified Speaker
Sam Foreign.
operator
Ladies and gentlemen, Ladies and gentlemen, good day and welcome to Multi Commodity Exchange of India Q1FY26 earnings conference call. Joining us on the call are Ms. Praveena Rai. Ladies and gentlemen, good day and welcome to Multi Commodity Exchange of India Q1FY26 earnings conference call. Joining us on the call are Ms. Praveena Rai, Managing Director and Chief Executive Officer MCX Mr. Manoj Jain, Chief Compliance Officer MCX Mr. Chandrash Shah, Chief Financial Officer MCX Mr. Praveen DG, Chief Risk Officer MCX and Mr. Rishi Nathani, Chief Business Officer, MCX. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Praveena Rai, MD and CEO MCX. Thank you. And over to you ma’.
operator
Am.
Praveena Rai — Managing Director and Chief Executive Officer
Thank you very much and good afternoon everybody. Thank you for joining the call today. So we’ve announced our results and I’m very happy to say that MCX has seen a high performance quarter. We have announced an income at a consolidated level in the first quarter of FY 2026 of 406 crores which is a growth of 60% on a year on year basis. It’s the highest ever revenue for mcx. So I would take this opportunity to thank all our members and participants for this. Our profit after tax has grown to 203 crores and the health of this growth is really reflected in the average daily turnover number for the quarter which stands at a very healthy 3, 10 crores.
So 3 trillion INR the financial year has begun very well. I think we’ve seen growth, adaptability, a lot of strategic actions coming into execution along with of course a very dynamic and evolving market environment. We’ve seen increased participation from institutions, hedges, including the MSME sector. Along with our financial participants. We’ve had a huge continued drive around awareness as well as product innovation. Since April we’ve launched a series of products. We launched products in the bullion segment involving the 10 grand futures on gold options on some of our silver products, the much awaited electricity futures as well as cardamom in the agri sector.
So really products across all the segments, nearly all the segments in which we operate. This really broadens the risk management for our stakeholders across the industries that are represented here. We continue to work very closely with regulators, our members Member associations so that we can develop this market further into maturity so that the impact that MCX makes for the commodity markets in India is significantly enhanced with the transparent price discovery and price benchmark mechanism. We remain highly focused on strengthening our technology and risk framework. This is an imperative as has always been and will be much required in the times to come to support our growth.
We also had a very momentous decision where the board approved stock split of 1:5. The objective was really to make the stock more affordable giving more access to a broader range of investors. On the face value being reduced from 10 rupees to 2 rupees per share. This is of course subject to all the approvals hereafter. As we really look at the financial year, the quarter one results with three.
Praveena Rai — Managing Director and Chief Executive Officer
More quarters to go.
Praveena Rai — Managing Director and Chief Executive Officer
You know I really look at all our entities in the ecosystem who are exposed to commodity price risks to appreciate the impact and the benefit of the hedging mechanism. And look at the regulated exchange rated commodity derivatives to better manage this risk. And our member brokers who continue to educate, in fact many of them have also established commodity desks to support the industry in how to really leverage these hedging instruments. All at MCX express our gratitude to all stakeholders, regulators, member brokers as well as our vendors and investors in this call and outside for their continued support to mcx.
So thank you very much and we can open the question session to questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press STAR.
operator
And two participants are requested to use.
operator
Answers while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference please limit your questions to two per participant. We will wait for a moment while the question queue assembles. The first question is from the line of Devesh Agarwal from IIFL Capital. Please go ahead.
Devesh Agarwal
Good afternoon everyone and thank you for the opportunity. Firstly, congratulations on a very great set of numbers to the entire team.
Devesh Agarwal
The two questions ma’ am that I.
Devesh Agarwal
Have first is basically there was a delay in commencement of trading on one of the D. So just wanted to understand what exactly the issue was in terms of why the delay. And secondly has there been any regulatory steps being taken up by SEBI in.
Devesh Agarwal
This particular instance and are we expecting any?
Devesh Agarwal
What is a penalty from the SEBI for this?
Praveena Rai
Yeah, it’s a very important question to address. And as mentioned we continue to be highly focused on our technology excellence. On the day as mentioned, there was a database anomaly which led to this delay in overnight clearing system processes and hence the delay in opening of trading that was immediately corrected. We have worked with experts in the space, the topmost experts available. The core issue was immediately identified and fixed and we are confident that this will not recur. All processes associated with regular root cause analysis reporting and working with the regulator are in process and that is a regular process.
You know that’s something that we work very closely with the regulator on. So I would at this stage say nothing untoward.
Praveena Rai
This.
Devesh Agarwal
Sure.
Devesh Agarwal
And the second question is on the expenses. So although the growth in the revenue is very heartening, but the margins, we were expecting it to be higher than what we have actually reported and per se I see that the employee expense and SGF expense has been higher than the expectation. So anything a particular one off in the quarter or do we expect that the expense run rate will likely to remain high going forward as well? And also the EBITDA margin that we have reported in this quarter, around 65 odd percent. You think this number is sustainable or going forward we may see some decline with the increase in the cost? That will be my last.
Thank you.
Praveena Rai
Yeah, no, thank you. I think that’s a very important question and this is as always Q1 over Q4 impact playing out here. In Q4 we did have certain one off expenses and as we look at really driving our growth significantly through launch of new products, increased number of participants to drive MCX business towards maturity and growth, we will continue to invest as required. So I would say that last year we had the efficiency that was delivered last year will continue to sustain and at this stage when we are in a growth phase, it will not be prudent to really say that we will be looking at further tightening the belt here.
So the focus is on growth while we do everything that we need to do to sustain the efficiency.
Devesh Agarwal
Just ma’, am, if you can put some guidance, this 65% margin that we have, do we think this number is sustainable or we see this going downward upward basis over the next 2, 3, 4/4
Unidentified Speaker
these margins could be a little under pressure but we’ll try to work on that because the volumes, what we have seen in July are also a little weak. So these margins are a function of revenue and expenses. While we can control the expenses, the revenue is depending on the margins. So it can be under some pressure but we’ll have to see as the year put basically right.
Devesh Agarwal
Thank you. So Much.
operator
Thank you. The next question is from the line of praise. Jane from mosl, please go ahead.
Praise Jane
Hi, thanks for the opportunity.
Praise Jane
I just extended that question. The previous question. So if you look at your employee cost previous quarter, in the previous quarter we had highlighted that there was some extraordinary or some one off bonus provisions that had happened. Now this quarter again we have seen a similar run rate. Do we expect the run rate to continue or. Now just an additional point out there whether the variable pay for this year will be apportioned over the four quarters or how is it kind of accounted. So how should we think about the employee cost?
Praveena Rai
Yeah, so there is an apportionment. Yeah. So to that extent the numbers hold that portion. Having said that, I think the numbers reflect a certain level of growth in people as well as you know, annual performance increment numbers and so on which have already been accounted for as well.
Praveena Rai
As the apportionment this quarter ended should sustain for the rest of the year.
Praise Jane
Yeah.
Praise Jane
Secondly on the business front, you know anything on the base metals delivery center sorting out or anything on colocation that you can share with us.
Praveena Rai
So in terms of metals I think there’s been a lot of consultation activity with our stakeholders. There will be some announcements on optimization that we will be making soon on CO location. You know, as you know this is completely in regulatory remit so you know nothing much for us to say there.
Praise Jane
Why is MCX not allowed versus say exchanges, other equity exchanges on per colocation. Hello?
Praveena Rai
Hello?
Praise Jane
Yeah, could you hear me?
Praveena Rai
Yeah, could you repeat yourself please?
Praise Jane
I’m saying what, what’s the rationale for SEBI to not give us CO Location Services vs CO Location Services being provided by equity exchanges?
Praveena Rai
I don’t know division, that’s a difficult question to answer here. So we’ll have to leave that with regulatory limit now.
Praise Jane
Okay, thank you.
operator
Thank you. The next question is on the line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Yeah, thanks for the opportunity. So my first question is on the uptick that we have seen on the the, on the Boolean options. Suppose the launch it has now become 46% of the notional turnover but in terms of premium it is only 18. So I understand we have like lower tune the notion here but how do you see this thing evolving in terms of the contribution and going higher, going higher in terms of premium as well. And also how do we see this in terms of the cannibalization that we can have here to the futures volume as well? Because futures there is a significantly large contribution from, from like bullion as well.
So this is the first question.
Praveena Rai
Yeah. So Amit point being is that premiums are a function of volatility and that is why you are seeing a lower premium to no small in bullion as compared to energy products. Having said that, there is no cannibalization of futures due to increase in options. If you observe the futures volumes have also increased while options volumes have increased. So I think it is the trend shows that both futures and options grow at the same time and have that potential. Okay, answering in the continuation to this, what kind of tweaks are required in terms of the existing products for both gold and silver in terms of margins and in terms of specification so that we get more retail participation and how the participation has changed in terms of the newer product that has been launched after the monthly expiry?
Amit Chandra
Is it more retail heavy or.
Praveena Rai
We are seeing a mix of both the similar mix that we had for other products in options. So we have made certain tweaks. The bimonthly options contracts have been made monthly and we have seen healthy participation there after. Also if you compare the retail participation from the Q4, it has increased in terms of percentage in Q1 FY25, 26. So from 51.79 it has increased to 52.37%. So retail participation has also increased. The gold 10 gram contract has brought in a lot of retail interests. I believe we do whatever is necessary to look at all types of participants, whether retail or otherwise.
Okay, and now the second question is on the costing aspect. So obviously we have seen some higher cost, but how do you see the tech cost going ahead from here on what kind of investments? We require more from a longer term perspective in terms of the existing tech cost already or we think that we are mostly invested in terms of the technology which is going to drive for the next two years or we need some additional investment industrial technology. And also from the SGF perspective, how to see earlier we were of the view that SGF would be in range of 6% of the revenue, but it has now gone up to 8%.
So now what could be the normalized SGF that we can achieve?
Praveena Rai
So let me take the tech cost question. So you know, we will continue to invest in technology. We have to continue to invest in technology as we broadbase our products and continue to put our foot on the parallel with the kind of growth that we’re looking at. So that’s a given. Doing it more efficiently is really the question. And I think that’s what I covered in the early Part that we will continue to focus and deliver the kind of efficiency that we looked at on the technology side. So will we invest and will it mean another big bump up of cost? We don’t expect.
So that we will continue to invest and we will do that in a manner that is done efficiently with reference to sgf.
Praveena Rai
Samish, can you step in on that?
Unidentified Speaker
So Amit, SGF contribution this time is not increased. It is in similar line. But all the regulatory fees, including civil regulatory fees which is paid on turnover is also included in that line. Okay, thank you.
operator
Thank you. The next question is from the line.
operator
Of Vikram Raghavan from Moon Capital.
operator
Please go ahead.
Vikram Raghavan
Hello team. Congratulations on your best ever performance. I have two questions. One is what will be the effective tax rate going forward? The second question is on the other operating income that has stayed flat over the years. I wanted to ask why is it not increasing as a function of volume as it largely comprises income from margin money. Thank you. So Vikram, effective tax rate for MCX is around 20.72%. The reason being that our subsidiary MCFCCL, whatever contribution to LGF they make is a tax deductible expense though it is not debited to P and M.
So that’s why they don’t have for tax provision and that is bringing the effective tax rate down.
Praveena Rai
There was a question on margin, right? Could you just repeat that question? Other operating income that is stayed flat.
Vikram Raghavan
Over the years, that is a function of margin money which is a function of volume. So why is it not increasing in line with the volumes?
Praveena Rai
Vikram, other income does not include this income on of the margin money that is part of income from operations. Okay, okay. I’m mistaken. I’m. I’m sorry for that.
Praveena Rai
So the effective tax rate would continue.
Vikram Raghavan
To be at 21% in the future also? Yes. Yeah, around 21, 22%. Thank you.
Vikram Raghavan
Thank you.
Vikram Raghavan
Thank you sir. And thank you ma’.
Vikram Raghavan
Am. All the best for your future performance.
operator
Thank you. The next question is from the line of Lavanya Todla from ubs. Please go ahead.
Lavanya Todla
Hi. Thank you for this opportunity and congratulations on a great set of numbers. So just on the new products and the recent products. So maybe if you can explain us or help us understand how we are working on the recent products or development specifically with the electricity derivatives and the next new products which are in line for the launch. That’s question number one. Second. I just wanted clarity on the cost. So specifically one is depreciation. So it has been fluctuating in last three quarters. So where do we See the stable levels here? Yeah. Yes.
Praveena Rai
Lavanya. So I think on the product side we spoke about the launches we’ve had both in as well as electricity, cardamom. So electricity contract was launched in June and the cardamom contract in July, of course, just a few days back. We are also looking at quite a healthy pipeline of products. So these were things that we worked on a few months back. And slowly as these approvals coming in and we are able to then bring them to market with a certain timeline. We of course have to time the market so that we can’t do multiple things at the same time.
And we will have a calendar of launches playing out. I expect that this will be across categories. We have plans in the metal complex as well as in the agri. Every side as we speak now. And bullion also.
Praveena Rai
On.
Praveena Rai
I think your other question was on cost stability. It’s something that.
Praveena Rai
Sorry, depreciation cost.
Praveena Rai
Depreciation cost. Yeah, you want to take that.
Unidentified Speaker
So Lavanya, depreciation depends on the tack investment that we do. And in the time there is fresh investment happening or assets are fully depreciated, this number is bound to change every year.
Unidentified Speaker
Okay.
Unidentified Speaker
Okay.
Lavanya Todla
So maybe just one question if I can squeeze in is more or less.
Lavanya Todla
Our.
Lavanya Todla
License fee should be broadly stable from your. And the staff cost also like as you have mentioned in the earlier question, should be stable from here even in Q4, is that right?
Praveena Rai
Understanding license fees is linked to the revenue from that product. Energy product. So it is directly linked to that. So it will vary with the variation in the income from energy products.
Praveena Rai
Oh, this is a step up model which we have with cme.
Praveena Rai
Right.
Lavanya Todla
Okay. So staff cost will be stable even in Q4, is that understanding right? Or Q4, are we expecting one more jump similar to last year.
Praveena Rai
With growth of the business? You know there will continue to be some growth in start cost. Yeah. So the business can’t grow with flat staff cost at this rate. So that’s what I said that whatever efficiency is there in the business when we look at a full year basis as of last year, we’ll continue to retain that efficiency.
Lavanya Todla
Thank you. Thank you so much.
operator
Thank you. Before we take the next participant, we would like to remind the participants to press star and one to ask a question. The next question is from the line of China from GIRIC Capital. Please go ahead.
Unidentified Participant
Hi, this is Chintan here from GIRIC Capital. One question was on SBF contribution. If I see you know the previous quarter number and full year number that got revised upward by municipality from 63 or cr for the full year 25 now in the Q1 audited review it’s almost 79 crore if I’m not mistaken. So I’m trying to understand the reason for further revision to. Okay, it’s club with the regulatory. Is it so. Yeah, yeah, that’s right. Okay. So 63 plus whatever it is is a regulatory which has been collected. Got it.
Unidentified Participant
Okay.
Unidentified Participant
Sorry. Second, second question is on the other operating income. You know somebody was asking about it earlier that it has been flag.
Unidentified Participant
Related.
Unidentified Participant
To the volumes we. So if you can run us through, you know what, what, what and what drives that other operating income. If you run your time it would be great. And the last question was on the breakup of the transaction revenue. You can provide for the quarter futures options.
Praveena Rai
Yeah, Chintan. The breakup of transaction charges between futures and Options is 109 crores from Features and 227 crores from Options. And other operating income is part of income from operations. What you are referring is to other income. No, no, no. So If I add 109 and 227, you know and.
And data takes from 373 as income from operations. That is the 3040 odd of other operating income which comes from I think the clearing corporation I believe. Right. That’s part of revenue recognized over there. If you can. You know that has. That line item has been pretty much stable. So I’m trying to understand what drives that number of houses on the. You’re right that that is the other operating income of our subsidy and McCluration. And largely the income includes. It is stable. You are right. So it includes income from margin money and warehousing income etc.
But it doesn’t grow with the volumes. So it’s volumes.
Unidentified Participant
Okay.
operator
Thank you. The next question is from the line of Jyoti Moy Jaina from an individual investor. Please go ahead.
Unidentified Participant
Hi, good afternoon. Can you hear me?
operator
Yes sir.
Unidentified Participant
Yeah, Hi, good afternoon. Congrats on the great quarter. I just had a couple of questions. Have you seen any volumes tail off because of this ban on Jane street by Sebi? And are there any plans to introduce much longer term products so that primary consumers can participate for example 2 year, 3 year, 5 year contracts on Chicago, something like that. Thank you.
Praveena Rai
Thanks Jyotir. So we keep working on various contracts and whether they are longer term depends on the market acceptance as well. So we do work on various maturities and for example in gold 10 grams if you see the liquidity within the fourth month when we launched.
So we are also Very happy to see liquidity across months.
Praveena Rai
And we do. And we do. And I just want to. Sorry just coming here but we do intend to extend the long dated contract as well. So we are working on that.
Praveena Rai
And regards your first question. You know it was more of an equity side issue.
Praveena Rai
At mcx.
Praveena Rai
We do not see any such issues relating to the matters you brought out. Perfect. Thank you very much. That has been the concern for capital markets generally. Thank you very much.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in this conference please limit your.
operator
Questions to two per participant.
operator
The next question is from the line of Sanket Gora from Avendus Park. Please go ahead.
Unidentified Participant
Yeah.
Unidentified Participant
Thank you for the opportunity.
Unidentified Participant
Sir, can you break down that 26.8 crores exactly into SGF contribution and the other regulatory cost. So just to want to figure out whether it is 6 or 7 percentage of the total transaction income. That’s. That’s point number one. And the second question just wanted to understand your view sir that that premium to notional especially if you see in the month of July has come off meaningfully. This just from. From your understanding point of view given. Given the volumes of increasing in mcx whether. Whether the retail participation going up that leading to more. More people trading in out of the money contacts and leading to structurally lower premium to notional number.
Is it a fair assessment to make so that the. The growth in the notional might not translate probably in the same proportion to the premium growth any. Any color. If you can give how. How the out of money contracts are trading to. To understand that trend sir.
Unidentified Speaker
So Sanjay, that broadly I can tell you what all is included in this expense line of 26.81 crore. So it is contribution to IPF and ISS which is 11% each of TC. It is a provision for contribution to HCX and the regulatory field that we do the exact breakup.
I don’t have it handy but broadly you can assume it is around. It’s around 4 crores.
Unidentified Speaker
4 crores is.
Unidentified Speaker
Other regulatory expenses and best is is your SGF cost. That’s the way I need to understand. Right? Yeah. Yeah.
Unidentified Participant
Okay.
Unidentified Participant
Perfect.
Unidentified Participant
Perfect.
Praveena Rai
And.
Praveena Rai
And on.
Praveena Rai
Yeah. To answer your second question regarding the premium to notional. You know premium to notional is a result of various factors. It’s just not trading out of the money. It’s also about the volatility in the market. If you observe the beginning of the first quarter there was heightened volatility because of global geopolitical situations. It is also Investor behavior. So naturally it will keep changing from time to time. Having said that we have been able to more or less maintain a consistent premium to notional. Of course it will differ from product.
Praveena Rai
To product so it’s very difficult to.
Praveena Rai
Give you a color as to where premium to notional is headed. Having said that we are. We always try to increase participation on the exchange and that should result in overall higher volumes.
Praveena Rai
And you know we are very happy that with the kind of growth that we’ve seen with bullion, which really starts stacking up in a very significant way in its contribution even more than in the past.
Unidentified Participant
Got it ma’. Am. Maybe if I can squeeze one more. Ma’, am, just on weekly expiry thing which we have spoken in the past. Any, any anything you are hearing from Sebi and, and if, if you, if you intend to launch then then most likely it would be in which product segment whether it will be in index options or, or bullion or crude or energy. This system, if you, if you can give a bit of how, how it is, how, where is it in. In the status basically.
Praveena Rai
Sunk. You know nice question is what I can tell you. And see we’ve been talking about the index options, right? So when I spoke about this pipeline of products that we are going to put into the calendar, you know we do expect the index options to be a part of that. Now what really will be the kind of you know, monthly etc. Etc. Is something that we will announce in due course. But I would expect that you know the general regulatory outlook towards weekly, you know, is fairly conservative. So I think we should sort of bear that perspective in mind in what we can expect.
Unidentified Participant
Understood. That’s useful. Thank you very much. That’s it for.
operator
Thank you.
Praveena Rai
Thank you.
operator
The next question is from the line of Sunil Desai from ICICI Securities. Please go ahead.
Sunil Desai
Yeah. Good evening ma’.
Praveena Rai
Am.
Sunil Desai
Congratulations on a good set of numbers. So my first question is more of a clarification just on the newly launched electricity futures. So are they this being charged on the same transaction fee as we charge on other futures or is there any wave off which we have offered right now same we are charging this. Okay. And secondly like, like we pay the product license fee to lme. Is it a similar kind of arrangement with IEX which we have here like same percentage or anything indifferent over here?
Praveena Rai
We do have a agreement with IEX giving us the rights to use their price. So it’s a very simple price that gives us a reference to the contract.
Sunil Desai
So is it like some percentage of it. What would be what it would be broadly or something. You can.
Praveena Rai
Yeah. So I don’t think we’ll be able to share exact details here, but yes, we do have an arrangement. We do have an agreement on this.
Sunil Desai
Yeah. Okay. And just one more small question.
operator
Sorry to interrupt, but I may request you to rejoin the question queue for follow up questions. Sure. Thank you. The next question is from the line of Chintan Tej from Giric Capital. Please go ahead.
Chintan Sheth
Yeah, thanks. Thank you for the product. Just wanted to understand how do you look at electricity features in the broader stream of things. We are launching new products and everything but we have been waiting for this for high content so we are kind of excited. If you can just watch our internal, you know, your voice is not, we cannot understand you clearly. Please. Sorry. Now is audible is better. Yes. Yeah. So my question was on the electricity, electricity futures. You know, we have been trying to.
Chintan Sheth
Get the approval for quite some time.
Chintan Sheth
And now we have got it. You know what, what Internally we are thinking to scale this up and how should, how should you, you know what, what will be the benchmarks or goals or targets you are setting yourself for to scale this up in the future.
Praveena Rai
Yeah. So I think we are also very excited, Chintan, about this contract because it’s a completely new product space and it’s a very large market. When it comes to India there is also very stable spot exchange mechanism that exists. So on the back of all that, I think we have launched the contract, we’ve seen good pickup in the early days. In fact, the first month is August, the first month of the contract is August. So the month now has opened, even though we launched in July to sort of warm the contract up. From the 1st of July, the sort of mechanisms really start playing out.
So there’s a very nice healthy open interest of about 700 lots that’s built up. So I would say early indications are looking green. The expectation of the contract is positive. I think it will add to our energy segment and we want to continue to build into that segment so that we build cover all energy products in the segment there. Any new product is going to take time to build out. Everything that we see today and the numbers we see have happened over years. So what we want to look at here is early milestones to ensure that there is a trading book that is active and available so that any producer or distributor or corporate, you know, is able to manage their price hedging mechanisms.
So it’s been extremely positive. The kind of feedback we’ve had from corporates you know, we’ve had many industrial organizations in fact call us proactively wanting to understand more and starting to try how the contract works in any.
Chintan Sheth
Sorry, hello.
Praveena Rai
Yeah, so let me just finish this last line. In any industrial setup, nearly 30 to 40% of their expenses is energy and electricity. So I think we are finding a lot of commercial corporate participation interest. And nearly 50% of our current participation also is from that space.
Chintan Sheth
Great, great, ma’. Am. All the very best for the future. Thank you. Thank you for answering the question.
operator
Thank you. The next question is from the line of Shalini Gupta from East India Securities. Please go ahead.
Shalini Gupta
Good evening.
Shalini Gupta
I wanted to ask like whole market volumes seem to have shot up. What is the reason?
Praveena Rai
So Shalini, we have been growing consistently over the years. It’s not that it has shot up suddenly and it is a factor of increasing awareness, increasing participation and that is translating into higher volumes. So you know, the business is growing and commodities are taking their place in the sun. So as to say. So I think that is also the reason why people are preferring commodities as a viable asset class. And more investor interest is there in commodities.
Shalini Gupta
So you’re expecting to continue?
Praveena Rai
I would also add that one is of course the macro aspects of what’s happening. But I think there’s also been a lot of very focused efforts and initiatives taken to create more energetic engagement interaction, spreading the knowledge of why commodity derivatives matter and so on and so forth. I mean these will take time to play out overall, but I think everything.
Praveena Rai
Sort of adds up into the space.
Shalini Gupta
Okay. And ma’, am, my second question. Why are options volumes much higher than futures volume? I’ve seen this across the years, across the quarters.
Unidentified Speaker
So Shalini, if you understand, the cost of trading options is quite cheap as compared to cost of trading futures. And that is a function of what the market prefers. We promote all products. We have equanimity towards all products. We would like all segments, all products to grow. At the end of the day, it is the participants who decide what to trade.
Shalini Gupta
That’s, that’s fair. But why are fewer options costs lower? Because the brokerage cost will be, will be the same across options in future.
Unidentified Speaker
It’s the taxation angle, salini.
Unidentified Speaker
Okay, so options are taxed at a lower rate.
Unidentified Speaker
So an option. So generally it is like if you take futures and options, the taxation part is one thing and apart from that one, even the broker starts differently for futures and options.
Shalini Gupta
Okay, I, I, Sorry to interrupt, ma’.
operator
Am, but I may request you to rejoin the question, give a follow up question.
Shalini Gupta
All right.
Shalini Gupta
Thank you.
operator
The next question is on the line of Aditya Bhatia from Electrum Capital. Please go ahead.
Aditya Bhatia
Hi, just a bookkeeping question. What is the average realization for the current quarter? And number two, on a more macro level, with the regulators increasing scrutiny in the derivatives market, are you seeing any near to midterm regulatory or compliance headwinds? Thank you.
Praveena Rai
So in terms of average realization, now you will understand that it is true to label. So there is no average realization. What we announced, there is a fixed fee for everyone and that is the realization. So there is no variability in the realization. And in terms of commodity markets, we are very small compared to the equity markets and we continue to grow.
And you see continued interest in people to participate here. See, commodities markets have varied participants. So you have a lot of hedges, real users, exporters, importers, physical market participants, primary producers and consumers coming into this market. So you cannot equate it with equity markets where they are just issuers or investors. Here there are a lot of other participants. So commodity markets actually serve a larger economic purpose. Thank you.
operator
Thank you. The next question is from the line of Aditya Yadav from Transient Capital. Please go ahead.
Aditya Yadav
Yeah, hi, good evening. My question was an extension to previous participants question I understand you discussed. There have been multiple initiatives which have been taken in terms of awareness, distribution, et cetera, which had led to increase in revenue. But still this quarter gone by, this April to June quarter had a step jump in revenue. I mean, so just wanted to probe a bit further on that and you could give your sense why it has suddenly taken off in the last quarter.
Praveena Rai
Yeah, so I don’t think it’s suddenly taken off. I think quarter on quarter, the last few quarters have been each a step.
Praveena Rai
Right.
Praveena Rai
So I think that’s probably the way to look at it. So if you look at every month, every month has had its. There are some great months and there are some good months. But overall quarter on quarter we’ve seen.
Praveena Rai
That.
Praveena Rai
Broader macro trend of growth is driven by macro parameters as well as all the actions around increasing both products as well as participants. Global actions around bullion, etc. Have helped the bullion space. This has also coincided with the launch of the monthly options that we’ve had on gold and silver, the 10 gram launch. So I think all those moving parts have come together and that’s how the sort of synergistic result is something that we are able to see today.
Aditya Yadav
Okay, all right, thank you. That’s all from my side.
operator
Thank you. The next question is from the line of parikshit Gupta from Fair Value Capital. Please go ahead.
Parikshit Gupta
Thank you very much for the opportunity on and congratulations on a great set of results. Most of my questions have been answered. So just one question on the electricity futures, please. While you have already mentioned that the transaction free charged is the same as other future contracts. However, would you be able to quantify in terms of either volume or maybe value of the business that you expect from this contract maybe for this entire financial year?
Praveena Rai
Yeah, no, sorry, we won’t be able to give that because that’s something that we are tracking internally. But like I said, I think we’re looking at milestones, we’re looking at green shoots here. I already shared the data in terms of what our current open interest is looking like. So the trend is as we’ve expected. The focus really is on early actions. The first, we are just two days into the first month actually of the first contract. So bringing in all the commercial participants and having them to actively participate is one of the primary objectives here.
Parikshit Gupta
Understood. Just one bookkeeping question. You mentioned transaction income split, please. Just wanted to confirm it. Futures is at 109 crores and then thereby options would be at 267 crores. Correct? 227. 227. All right. Thank you very much for answering my questions and good luck for the current quarter.
operator
Thank you. Ladies and gentlemen, this will be the last question for today. The next question is from the line of Lava Network from ubs. Please go ahead.
Unidentified Participant
Thank you for the opportunity again. So, just wanted to understand one thing, clarification. So ma’, am, you mentioned that the participation in electricity derivatives, 50% is coming from the corporates. So the rest is coming from capital market participants. Or have you seen discounts using this for hedging or I mean increasing participation from discounts one can expect over a period of time. Anything that?
Praveena Rai
See, 50% class is coming from clients. You know, of that I think we really wouldn’t be able to say whether it’s coming from what kind of participant is common and so on. But I think we do expect the public sector to take more time to come on board. The early participation will come from private sector general generators and we are actively engaged with all of them. There is a lot of activity around solar generation and private distribution and so.
Praveena Rai
On and so forth.
Unidentified Participant
Okay, yeah.
Praveena Rai
So we have the open interest of 700 lots.
Praveena Rai
Maybe participation in terms of other contracts obviously like in terms of hedging and all.
Praveena Rai
I mean specifically gold.
Praveena Rai
Are we seeing higher share of hedgers in other contracts? Coming in.
Unidentified Participant
Specifically gold. Anything there?
operator
Can you repeat?
Unidentified Participant
Again, you’re not clear.
Unidentified Participant
So I’m. I’m just asking how the participation in other segments has evolved. Specifically hedges in gold, like how it has evolved over a period of time, Is it increased or hedging part.
Unidentified Speaker
You are already aware of it. There’s a significant contribution because when you look at it, you have to look from open interest. When you are looking at hedges and when you are looking for other market participants, maybe you can look at the volume in commodities like gold and other commodities, metals and other things. You could see lot of participation in the hedges in terms of their contribution to the open interest. Okay. So in case of volumes, I think it is going to be distributed across many category of market participants. Thank you.
Unidentified Participant
Thank you so much.
operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the contents over to Ms. Praveena Rai, MD and CEO MCX for closing comments.
Praveena Rai
Thank you very much to everyone who participated and very high quality of questions. I hope we were able to address all of them. Thank you for your time and participation. Look forward to staying connected.
operator
Thank you on behalf of Multi Commodity Exchange of India Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.