Multi Commodity Exchange of India Limited (NSE: MCX) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Unidentified Speaker
Praveena Rai — Managing Director and Chief Executive Officer
Rishi Nathany — Chief Business Officer
Chandresh Shah — Chief Financial Officer
Analysts:
Unidentified Participant
Devesh Agarwal — Analyst
Amit Chandra — Analyst
Prayesh Jain — Analyst
Chintan Sheth — Analyst
Ansuman Deb — Analyst
Parikshit Gupta — Analyst
Anand Bhaskaran. — Analyst
Presentation:
operator
Sa. Sa. Foreign. Ladies and gentlemen, the conference of MCX will begin shortly. Please stay connected and do not disconnect. Thank you. Ladies and gentlemen, the conference of MCX will begin shortly. Please stay connected and do not disconnect. Thank you. Foreign.
operator
Ladies and gentlemen, thank you for your patience. The conference of MCX will begin shortly. Please stay connected and do not disconnect. Ladies and gentlemen, thank you for your patience. The conference of MCX will begin shortly. Please stay connected and do not disconnect. Thank you. Ladies and gentlemen, Good day and welcome to the Multi Commodity Exchange of India Limited Q3FY26 earnings conference call. Joining us on this call are Ms. Praveena Rai, Managing Director and Chief Executive Officer, Mr. Richie Nathani, Chief Business Officer, Mr. Chandra Shah, Chief Financial Officer, Mr. Manoj Jain, Chief Compliance Officer and Mr.
Praveen, DG, Chief Risk Officer. As a reminder, all participant lines will remain 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 the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Praveena Rai, MD and CEO MCX for opening remarks. Thank you. And over to you Ma’. Am.
Praveena Rai — Managing Director and Chief Executive Officer
Thank you very much. Good day to everyone and a warm welcome for joining us today for the quarterly earnings call. We are delighted to share that the third quarter of FY26 has been a strong and defining quarter for MCX reflects the momentum we have built for our business products and market participation in the context of broader macroeconomic environment. Our performance during the quarter underscores the resilience of our platform, the strength of our operating model and the important and growing relevance of commodity derivatives in India’s evolving financial ecosystem. For the quarter ended December 31, 2025, our consolidated revenue from operations grew by 121% year on year to 666 crores while EBITDA grew by 144% to 527 crores.
Profit after tax proportionately grew by 151% to 401 crores. This robust performance was supported by an increase in macroeconomic activity both at the global and country level along with supported efforts around products participation and delivery to scale both in the operating and risk management level. Our average daily turnover in futures and options rose to 7.5 lakh crores. You’d recollect that in the first half of the year we clocked 4 lakh crores while we closed the previous year at about 2 lakh crores so this is a year on year growth of about 220% on a nine month basis.
We see healthy growth trends too with revenue from operations up by 72% to 1,413 crores and PAT increasing by 89% to 802 crores. Operationally the quarter was marked by deepening participation across segments, particularly in bullion, but well supported by other commodities and with bullion now contributing 69% of the average daily turnover and including in its portfolio many successful product launches for gold, mini gold 10 futures, silver, monthly options, expiry and smaller denomination contracts and monthly options on the MCX ICOMDEX Bullion Index. These initiatives reflect our continued focus on expanding product breadth while enhancing liquidity and risk management efficiency for all participants.
New participants by way of new members, FBIs as well as domestic financial institutions also contributed to the healthy uptick in our volumes. Throughout this phase we remain firmly guided by higher standards of governance, compliance and market integrity. Our priority continues to be delivering a robust, transparent and resilient marketplace that creates long term value for hedgers, investors, members and all our stakeholders. As we look ahead, we are confident in our strategic direction and operational readiness to support this excellent phase of growth in India’s commodity derivatives market. We’re committed to innovation, prudent risk management and sustainable value creation.
We extend our sincere gratitude to all stakeholders, regulator, member, brokers, vendors and partners and associates for their continued and unwavering support towards mcx. With this, I conclude the opening remarks and look forward to an interesting discussion in the following Q and A session.
Questions and Answers:
operator
Thank you ladies and gentlemen. 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 and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question please press star and 1. We take the first question from the line of Divesh Agarwal from IIFL Capital.
Please go ahead.
Devesh Agarwal
Good evening everyone and thank you for the opportunity. Firstly, heartiest congratulations to the entire team for a great set of results and numbers. Very good numbers, ma’. Am. My first question, ma’, am is basically on this. We see that the number of traded UCC have seen a significant jump in this quarter on a sequential basis. Could you help us understand what is driving this growth and do you Expect these numbers to grow even in the upcoming quarters.
Praveena Rai
Thank you Divesh for the appreciation. We’ll certainly pass it on to the entire MCX team. We have at the heart of this growth in UCC2 contributing factors. 1 is really an exercise in exploring and aligning the user experience across members for commodity derivatives trading. So we did identify early on that experiences like a common ledger front screen experience for a retail member, a retail participant where important criteria and in really reviewing experiences end to end, there is a fair amount of activity that our teams have taken. But more importantly, members have looked at the opportunity that they seek for commodity derivatives market what their users are looking for and aligned the experience to be a common experience, be it equity investing or commodity derivatives investing.
So we believe that’s one of the drivers of the uptick. Alongside that is also the fact of new members who have come into our fold that has Contributed to new UCCs coming in along with those members. So both of these are driving factors. I think at least for rest of the year we do expect to see a certain momentum continuing. And when I say rest of the year, let’s say for some time now we expect this momentum to continue because we there is headroom from where we stand today to what is the potential.
Devesh Agarwal
In this new members that you mentioned? When you speak about the headroom, are you talking about more headroom within this new member who have joined which can grow further or there are also other members who may be bigger active on equity and haven’t started offering commodities even on that account? We have potential.
Praveena Rai
Yeah. I think headroom is both. Headroom comes from both at a larger business level. But certainly when it comes to UCCs and UC participation at India level, we see headroom there.
Devesh Agarwal
Sure, sure. My next question would be Ma’, am, we see that this quarter particularly the gold and silver delivery has increased on our platform. So one I wanted to understand does this additional deliveries lead to some additional cost for the company and other is basically in an event if there is a short delivery that happens, what will be the liability on the exchange?
Praveena Rai
So no, there is no additional cost to the company because these are managed as part of warehouse negotiations and what participants pay for the services. And we are quite happy to see this sort of healthy delivery happen despite global conditions at a point in time it was a very active management from the exchange as well. The second question on what could be potential impact of short delivery? There are guidelines and rules that manage that circumstance by way of penalties and so on and so forth. So these are well established Processes and they have happened in the past and they happen on a as and then basis depending on market conditions.
And we are well equipped to handle that. Ma’.
Devesh Agarwal
Am, so far, are there any instances in last three, four months where there has been short deliveries?
Praveena Rai
No, nothing abnormal.
Devesh Agarwal
Right. And with this increased activity, both in futures and options turnover, what kind of technological enhancement would you be required to do? And what is the capex that you intend to spend to build up more capacity?
Praveena Rai
Yeah, so Devesh, I think this is ongoing exercise. This is a question I think probably in the last two quarters also we discussed. So with growth, and more importantly with the expectation of growth, is the continuous need to keep our technology up to date, ready for high resilience, high availability, high scalability, fully functional, to manage all the volatility as well as growth that the environment offers. So we will continue to be in investment mode as we have been in the past and we see that as necessary, but also a positive part of where we stand in the business.
Devesh Agarwal
Any particular metric that is tracked in terms of the order that the system can handle and what has been the build out that has happened over the last say 12 months or probably the peak orders that you have seen this quarter versus that? What is the capacity that we have at this point in time?
Praveena Rai
Yeah, we’ve seen significant increase in our order volumes this quarter. I don’t have the numbers handy right in front of me, but we have seen them significant and we have held strong thanks to investments of the past and we continue to have very strong oversight over what is required for the future. And these are very BAU activities, let me put it that way. So we are not in a phase where we are looking at growth as a one time measure. It’s a every quarter activity. So it will continue to persist.
Devesh Agarwal
Sure, ma’. Am. Perfect. That’s all from my side. Thank you so much.
Praveena Rai
Yeah, continue to persist in an efficient manner. Thank you, Devesh.
operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Thanks for the opportunity and very strong numbers, ma’. Am. And electronic assistance to the whole team for this. My first question is on the volume uptick that we have seen. So obviously every month we are seeing a new high. And obviously in terms of the mix also it has been fairly distributed wherein both the energy contracts and the bullion contracts are contributing. But from here on we also mentioned that we’re also focusing on the metals contract as well because as we see some declining the volatility we want the portfolio to be more diversified. Obviously it has been but the strategy in terms of increasing volumes on the metals contract.
So what’s the update there? And also in terms of the indices and the index options we have launched but we are seeing very, very minimal traction there. Obviously we had some challenges there in terms of participation but any update there where we are in terms of the index option side. Thank you.
Praveena Rai
Thanks Amit Rishi will just take your questions on this.
Rishi Nathany
Yeah Amit, to answer your first question on base metals, it’s not just base metals. We have four segments as you know, Abrielle Metals and Energy and we are trying to focus on all of them in base metals. We’ve already seen traction in the copper futures and options. We are seeing a lot of traction on zinc options and futures as well nickel which we launched this year. Only now we are seeing good volumes and a healthy buildup of oi. So in terms of base metals also I’m, I’m sure we are getting there as we speak on the index.
While we did launch index options and we haven’t seen the kind of traction we were expecting. However on index futures we have seen good traction building up and we hope that once the futures gets good momentum options will follow.
Amit Chandra
Okay. And no ma’ am on be a question of the participation in terms of the credit UCC that we have seen a very sharp increase. Obviously this is because of onboarding of new members but in this quarter we have seen the full three month impact of the new member which has been added and also in terms of the overall time because if you see on the other exchanges, equity exchanges, this number is almost five times higher in terms of the people who are trading on options. So how do you see this and also in terms of the you know the like New York people who are coming and trading on mcx I know these are mostly retail hnis any like profiling if you can share? Because in terms of the mix we are not seeing the FBI or the institutional participation increasing, only the client and the others.
So the mix has been fairly stable. So is it only because of the volatility these people have come in and traded and how do you see the like no stickiness of these people in the longer term?
Praveena Rai
Yeah, yeah. So Amit, I think the UCC number of course is a number that subsumes many of the other and sort of other participants because this number is in lakhs and Those numbers are in double digits. So over here I will say that there is headroom to the extent that there are more investors in the market and there is interest in the investors. At the same time, we don’t believe commodities is something that’s going to be for one and all and the entire market that today trades is an addressable audience. So to that extent, at some point, once we have reached a certain level of maturity with uccs, this will start flattening out.
But we still see headroom for growth there. With reference to other members, I think you can’t look at UCC numbers to gauge that impact. We do see impact from other categories as well coming in.
Amit Chandra
And just to follow up on this, ma’, am, is it also because obviously the volatility is so high in the market in terms of the bullions and the other contracts as well. Plus there is an advantage in terms of that the cost of trading for commodities have become lower versus equities in terms of the taxation. STT is like 2x of CTT. And also in terms of the size of the contracts for the commodities, especially the mini contracts are much lower than what it is that inequity. So this is also structurally helping us in getting an attracting more retail customer.
So any views on this?
Praveena Rai
No, what you said is just factual statements and has been there for a while. So I really don’t have a view on what this is doing specifically now.
Amit Chandra
Okay. Okay, ma’, am, thank you and all the rest for the second.
operator
Thank you. We take the next question from the line of Prayesh Jain from Motilal OSWAL Financial Services Ltd. Please go ahead.
Prayesh Jain
Hi, good evening everyone. Firstly, congratulations on a great set of numbers. Ma’, am, the first question is an extension to the previous one, the base metals. You know, we’ve seen at JAMF and we earlier had alluded to the challenge in base metals with respect to the multiple numbers of delivery centers. Have we in any form modified that and consolidated the number of delivery centers? What has really caused the sudden increase in base metal volumes? Yeah, that would be my first question.
Praveena Rai
Yeah. So we have seen increase in base metals volume. There is a quarter on quarter growth of 156% with a year on year of 77%. This upswing. Of course, in the context of volatility, there are a couple of actions that we took explicitly. Number one was consolidating warehouses. We’ve done that for copper. Copper has moved to a single warehouse. This was based on the study of numbers of deliveries that happened across warehouses. And also the Market feedback that we had from the members that they were looking for this kind of modus operandi to simplify the contract transparency for them.
So that has helped. We’ve also had a lot of market engagement with reference to GST sort of queries, if I may call it that. So some lack of awareness amongst participants on how to handle GST as part of deliveries and so on and so forth was also another important initiative that we had that we have been taking and specifically in the last quarter. In addition to this, of course is the broader outreach engagement. Number of members have set up commodity desks, they are very active. So I think we are also in the midst of a bit of capacity building around commodities, the broader ecosystem.
So all these three put together along with the environment around volatility of metals and of course the demand for base metals in the industrial space have all contributed to this.
Prayesh Jain
Ma’, am, do you plan to extend this, the change that you’ve done for copper to other base metals as well? About a single delivery center.
Praveena Rai
So we are reviewing and we are consolidating nickel, for example, is operating in one center only as a relaunched new contract which also had that other element of differential trading unit and delivery unit that was also an action taken specific to nickel that that started to give us good results on nickel. On some of the other contracts also we have started consolidating the primary warehouse and reviewing the other warehouses and some that are not very effective are also being rationalized.
operator
I would request you to please rejoin the question queue. Okay, thank you. We take the next question from the line of Chintan Sheth from GIRIC Capital. Please go ahead.
Chintan Sheth
Thank you for the opportunity and congrats to the team for great set of numbers. Even the January numbers looks really, you know, the momentum continues to be pretty strong. So in that context, ma’, am, if you could elaborate on, you know, product launches you alluded to in the past. If you can, you know, further give us an update which are the contracts which are, you know, new launches which we one can expect from here on. That’s one and second on the sgf given the volumes, you know, rising, we have seen this consistency as a percentage of revenue.
That is what one should expect going forward. That’s the second one. And lastly the bookkeeping one. If you can split the revenue between the futures options would be helpful. Yeah, that’s. And I’ll Jenna, thank you.
Praveena Rai
Yeah. So from the question you had on futures and options, Chandrash, could you just provide those numbers?
Chandresh Shah
Hi Chintan. The revenue from futures was 227 crore for this quarter and options 380 crores.
Chintan Sheth
Got it, thank you.
Praveena Rai
And with reference to expense numbers, Chintan, we do believe that our expenses are lagging our growth in terms of what we really need both from a technology and operating standpoint as we work towards the business opportunity, sustained business opportunity, as well as what the economic environment requires, what our market requires. So we will be looking to normalize this over time, not necessarily from the standpoint of exactly where we stand. And I can tell you that operating expenses on a 1/4 basis is very difficult to comment on. So I think we’ll wait for the year end to play out there.
But we are in the midst of planning for our next year looking at sustained momentum of growth and what will we need to do, what is the demands and requirements of the market for us to really use this opportunity to shape the markets? From an Indian commodity derivatives situation. This is an opportunity for us to take a lot of proactive steps and we will be doing that in a manner that is efficient and contributing to our bottom line.
Chintan Sheth
And lastly on the launches, if you. Can update us on.
Praveena Rai
Launches to come is little difficult to comment on. We are focused on stabilizing the launches that we have made and we do have a healthy pipeline but we will look to time it, you know, on the back of our internal process as well as our gauge of the right timing for the particular product in market.
Chintan Sheth
Okay, thank you. Thank you. Thank you.
operator
Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Ansuman Deb from ICICI Securities. Please go ahead.
Ansuman Deb
Yeah, thanks for the opportunity and congrats on great set of numbers. May I have two questions? One is on the again on the SGF side. So any quantification of the kind of SGF we would require because the volumes have increased significantly or any policy towards that, that is one. And second is in terms of the ability to handle these volumes. You said that expenses is BAU as usual and you keep on investing. But on the current state of affairs can we, is it, can we have any numbers in the sense. For example if the options goes to 1.5 trillion or 2 trillion or plus futures, sorry futures goes to 1.5 or 2 trillion per day or you know the, the future the premium goes to maybe 15,000 crore ADT or 20,000.
So any, any volume levels in which we are comfortably placed. So these are the two questions.
Rishi Nathany
So anshuvan on the sgf. So see SGF is a requirement prescribed by sebi. So for SGF contribution we keep looking at the requirements and we keep sending it as it helps in providing safety net to ensure that the transactions are complete and there are no participant defaults. Even if the participant defaults, we can conclude the transaction. So in a different way, strong SGF also gives us some flexibility to manage margin requirements from members.
Ansuman Deb
Right. So but any quantification on the requirement or. No, no, no. Okay. And on the volume levels at which we can you think like it’s comfortably placed as of now?
Praveena Rai
Yes. So. We are well placed for a certain multiple of the volume that we have faced right now. And I’m saying face because it’s been a big multiple over the previous quarter and that quarter over the previous quarter and so on. So if you look at this kind of a momentum we are well placed for at least, you know, 3 to 4x kind of a volume. But our intention and objective is to really be ready for more. In fact market is telling us to be ready for a 10x volume. We’ve spoken about it also. So that’s the kind of readiness that overcomes that we will build up.
Thank you.
Ansuman Deb
Thanks a lot.
operator
Thank you. We take the next question from the line of Akhilesh Bhatta from Ampersand Capital. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I had a question regarding the margin requirement. So given the increase in volatility in gold prices, silver prices, precious metals. So do you anticipate any increase in margin requirement required by the regulator? I just want to understand how does that function.
Rishi Nathany
Margins are actually dependent on. I think you know that one of the primary factor is the volatility. That is what decides your initial margin. And apart from that one we also have additional margins and Elm so there is a fixed formula is that it is more driven and it is. That means we look at the what is the price movement in each of these commodity and the basis that on the war based margins are going to be levied.
Praveena Rai
It’s part of standard process. Every day there is a margin calculation that happens based on current volatility price and so on and so forth and immediately that is then applied to market. So it’s not a one off activity though if we see the need and the requirement there is an additional margin over and above that also that the that that gets levied. It’s an ongoing activity.
Unidentified Participant
So the essentially the risk that you are exposed to in terms of a participant honoring their transaction is very low because of the requirement systems that you have in place.
Rishi Nathany
Yeah, and we also do that M2M anyway like because it happens on a daily basis that way like the risk is limited to only not more than a year day, single day. And that is well covered using the initial margin which is. This is the war margins, you know.
Praveena Rai
The regulatory framework which defines the margin calculation. And India is a conservative market in that sense. So our margins are the highest in the world and tend to go up quite steeply as volatility steps in. While this does lead to some sort of a constraint in the industry with members having to cough up larger sums for margin, it keeps us well managed from a risk standpoint. And of course in addition to that is the SGF framework. So both working hand in hand keeps us both MCX and MCX CCL well protected as an exchange and clearinghouse.
Unidentified Participant
That’s very helpful. Thank you.
operator
Thank you. We take the next question from the line of Uncle M from Old Rice Investment. Please go ahead. Uncle, please unmute your line.
Unidentified Participant
Yeah, hi. Thanks for the opportunity. Can you hear me?
operator
Yes, please go ahead.
Unidentified Participant
Yeah, so when we are launching the derivative on aluminum, lead nickel if you can guide there. And second electricity derivative market share is low for NCX compared to nsc. So are we planning to launch options there in order to gain some market share? Thank you.
Rishi Nathany
What was your first question? When will be launching aluminum etc.
Rishi Nathany
He’s talking about options.
Unidentified Speaker
Okay. So uncle, for all products there is a threshold of non agri for thousand crores ADT in a complete one year cycle post which only we can apply. So whether it’s aluminum or electricity, whichever contracts will be crossed that thousand crore ADT threshold on futures then only you can apply for options. So we are seized of that matter. And as and when we cross that threshold and we see that there is appetite in the market, we will definitely work towards that. Yeah. And in terms of electricity, while the volumes, whatever they are showing are participation from clients is very high as compared to other contracts available in the market.
And we do look forward to adding more and more value chain parts to a contract. So we are sure that we will definitely see more traction in terms of growth.
operator
Thank you. We take the next question from the line of Sanket Khaura from Evendes Park. Please go ahead.
Unidentified Participant
Yeah, thank you. Thank you for the opportunity. My first question is more on product license fees. See we saw a significant growth in the revenue on quarter, on quarter basis but our product license fees hardly grew. And then if I do it as a percentage of the transaction income it comes around 4.1 percentage for the quarter. And while it has been in the range of six to seven percentage for previous five six quarters. So just wanted to understand how this exactly works. Whether the license fees what we pay grows in line with the revenue or it has a fixed slab and then incremental percentage what you pay for the licenses grows at a meaningful very low rate.
This just if you can give a color on how it works it will be useful. That’s my first question. And second question is, is out of the 665 crores, I think 601 crores is transaction income, how much is coming from core floating come investment floating come. That is from the margin money not not the other income. So. So if you can answer these two questions it will be useful.
Praveena Rai
Yeah. So you know in terms of product license fee is you know you can read it off from the numbers on energy because we settle off international prices working with cme. So that’s the part that contributes to product license fees. Right. So when bullion grows etc. That doesn’t lead to any direct cost to us because we settle on our own prices float income.
Rishi Nathany
This is around 45 crores.
Unidentified Participant
Okay. It’s around 45 crores. Fine. And lastly ma’, am, if I can squeeze one from September to December and to January means I know that silver has seen a margin increase in the month of in third quarter. But any other product which has seen margin requirement going other than silver in third quarter and even January till date.
Praveena Rai
Yes. Yeah. Number of products. In fact wherever volatility has been higher, it’s gone up in gold, it’s gone.
Rishi Nathany
Up in copper, copper and even other metals. Also. In natural gas. Sorry I don’t have a list in front of us but it’s gone up in a number of commodities and it. Has been increased by a percentage or so on broader basis. And this wanted to check that. It’S a percentage or more percentage. Yeah.
Unidentified Participant
7% initial margin has gone to 89 delta change. I. I mean to ask. Right.
Rishi Nathany
So if you take it is around 25% then you have a additional margin. So gold is around I think around 10%. It is. So it purely depends upon the volatility. Purely depends upon the volatility in that.
Unidentified Participant
Commodity and praveen reversal of it. For example, if tomorrow volatility cools off is it easy to reverse this or it stays for a little longer time?
Rishi Nathany
Yeah. No, no. It is actually volatile based margin that span this basis that one it automatically calculates what is the volatility in that margin. Because we use EWMA model so basis that one it will estimate what could be the probable volatility and accordingly the margins will be levied. So the moment if there is a downtrend in the volatility automatically the margins will come down.
Unidentified Participant
Understood. This is useful. Thanks. Thanks for the answers.
operator
Thank you. We take the next question from the line of Parikshit Gupta from Fair Value Capital. Please go ahead.
Parikshit Gupta
Good evening everyone. Thank you very much for the opportunity and congratulations on a great set of results. Most of my questions have been answered. But just one on the risk to our monopolistic position especially in bullion. We all know what is happening with iex Although we are governed by a different regulatory body. But do you anticipate any similar risks of maybe sharing the price discovery for mcx? If that. If you could please articulate on that. Please.
Praveena Rai
Farakshit. Competition risk does exist. Because other exchanges are also vying for share in this space. So we are cognizant of it. And we. We respect the environment in which we are operating. We do believe as long as we stay focused on our growth and innovative in our approach to products that meet the needs of the market, continue to grow participation, deliver to both technology, operational and risk management needs. We are well positioned to act as the Commodity Derivative Exchange for India.
Parikshit Gupta
I understand. Thank you for that. Just a quick follow up on this please. Has there been any activity from SEBI or any intimation which I shared with you about splitting the overall buy of the market, as you may put it.
Praveena Rai
We don’t have any intimation like that, Parikshit.
Parikshit Gupta
I understand. Thank you very much for this and good luck for the current quarter.
Praveena Rai
Thank you.
operator
Thank you. Ladies and gentlemen, we request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Anand Daskaran from KCMA Wealth. Please go ahead.
Anand Bhaskaran.
Good evening. Can you hear me?
Praveena Rai
Yeah.
Anand Bhaskaran.
Yeah. Congratulations to a good set of numbers. Two questions. One is a follow up for the previous one. Can you just repeat the breakup for the futures and options revenue basis once again for Q3 FY26.
Praveena Rai
So Q3 futures revenue is 227 crores and options revenue is 380 crore.
Anand Bhaskaran.
380 crores.
Praveena Rai
Yes.
Anand Bhaskaran.
Okay. And second is like. Regarding the new index options have been launched in this quarter. The ADB has come for this quarter. What do you see? You know the ADB can be, let’s say in the next three, four years or so, an average basis.
Chandresh Shah
We won’t be able to comment on the estimated adt. But what we have seen in this quarter is yes, there is a good performance in terms of futures turnover. In case of bulldogs.
Anand Bhaskaran.
The futures for options ADDV will be like sign a mirroring for the futures.
Unidentified Speaker
So Anand the auctions frankly hasn’t taken off to that extent as yet. It takes time for contracts to build and develop. For example, when we launched nickel it took time. Now we are seeing the results after many months. Similarly, we have to give everything time. But what is heartening to see is that the futures are seeing traction and hopefully we will see traction in options as well as we go forward.
Anand Bhaskaran.
Okay, thank you so much.
operator
Thank you. We take the next question from the line of Prayesh Jain from Motilal osal Financial Services Ltd. Please go ahead.
Prayesh Jain
Yeah, hi, thanks for the follow up. Again, the first question here is on the, you know, the regulators talking about more participation of banks and other financial institutions on the commodities front. Any conversations that you’ve been having with the regulators to kind of, you know, what are the things needed for new participants to kind of come into these, come into this bandwagon and whether, you know, is MC equipped to kind of give that. Yeah, that would be our first question.
Praveena Rai
Yeah. Prayesh, these are ongoing conversations we have had and are having but they are of course under regulatory consideration. We won’t have anything more to share on this.
Prayesh Jain
Got that. And secondly again, I think I’ve been asking this question on almost every call. Anything on the quote, location facilities which currently are not being allowed for us. Is there any conversation with the regulator on this and whether, you know, this can be extended to us?
Praveena Rai
Same question. Same. Once again it is, it is under regulatory purview. Yeah. So there’s really much for us to.
Prayesh Jain
Add made about allowing that and I think that is one of the key elements for you to grow the FBI as a segment.
Praveena Rai
FBI’s are onboarding now. FBI’s are onboarding and FBI’s volume is also growing. We are seeing renewed interest in FBI maybe after the Jane street situation when a little bit of a lull was there. We are seeing that renewed interest coming. So again, conversation per se is an ongoing one. We won’t be able to comment on that.
Prayesh Jain
Got that. Thank you.
operator
Thank you. We take the next question from the line of Vedant Sarda from Nirmal Bank Securities Private Limited. Please go ahead.
Unidentified Participant
Congratulations on a great set of numbers and thank you for the opportunity. My question is based on the previous participants query only. Though we are well positioned in the overall ecosystem and we have not received any kind of intimation from any regulatory authority on different market participant entering into the segment. But how do we see this risk?
Praveena Rai
No, the risk is real. I think we appreciate it and we respect it. We need to be prepared for it. And we are doing that by sort of enhanced activity both on our product and the participation end. We have also increased a lot of market outreach with awareness programs, knowledge sharing programs with our members. Continued innovation on the technology roadmap. So I think the way to really hold forth is to. Is to be very positive and forward looking in our approach and actions and make sure we are executing to our plans.
Unidentified Participant
Thank you so much.
operator
We take the next question from the line of Aditi Parmar from I Wealth Fund. Please go ahead.
Unidentified Participant
Hello. Hello. Hi ma’. Am. Congratulations on a good set of numbers. Just wanted to verify that the revenue for our futures and options was 227 and 380 crores respectively. So if we take the balancing figure that comes to near and about 58. And historically like if we see a quarterly trend that has always been 3037 crore. So then what is the reason for the increase for the same.
Praveena Rai
Thanks, Aditi Chandra.
Chandresh Shah
Yeah. So Aditi, that includes the float income and some other income warehousing income from of our subsidiary.
Unidentified Participant
Okay, understood. Got it. And sir, like if. If we. For the other cost, if I remove the software and technical expenses, product license means and the contribution to sgf then the other cost which. Which comes down to is near and about 23 crore. Could you explain the reason for the increase in this other cost?
Chandresh Shah
So Aditi, other expenses largely related to administrative and office cost, CSR spends, legal, professional fees, travel, business promotion activities. So the increases towards those activities only to increase the volume of business.
Unidentified Participant
Understood. Thank you. Thank you.
operator
Thank you. We take the next question from the line of Aditya Yadav from Transient Capital. Please go ahead.
Unidentified Participant
Hello. Yeah, hi. Congratulations to the. Yeah, hi. Congratulations to the management team. It’s been a great execution in the past few quarters. And plus the market conditions have also been providing a sort of tailwind. So. Yeah, great quarter. My question was mainly on the dividend front. Any. I mean plans or discussions to probably increase the dividend payout ratio as percentage of net profits. Because I suppose now as the volumes have taken off and everything. So we have a lot of free cash flow generation and probably taking in the technology investments also which we’ve spoken about will be required. But again beyond that also we have a lot of free cash. So I mean what are the thoughts around that? Thank you.
Praveena Rai
Yeah. So I think it’s, you know, this is a decision we’ll take. After the end of the year. We are in growth mode. We will take various requirements for capital into account as we look at what’s the right thing to do from a dividend standpoint. Please hold until that point.
Unidentified Participant
Okay, thank you. And my second question is on the margin front, do we see further operating leverage in the business as our volumes, they continue to scale up and as you’ve mentioned that at least in the near term you see the momentum on the momentum on the volumes and the client codes going up to continue. Do we see operating leverage?
Praveena Rai
So we see good business momentum. We will also be looking to make sure that our spends do catch up with the growth, be it in the operating side as well as the technology side. It’s very important for us to do this to be, to deliver to the kind of volumes that come in. So there will be efficiency and I think a lot of efficiency is already there on the table. But we will have expenses and spends commiserate with revenues as well as more importantly with what is needed for the execution of our plans.
Unidentified Participant
Okay, thank you. That’s all from my side.
operator
Thank you. We take the next question from the line of Srinik Mehta from Indo Elf Wealth. Please go ahead.
Unidentified Participant
I just wanted to check a little bit of an understanding of how this will work when the prices for especially the gold and silver may possibly come down. Do you see a correlationship between the past growth of gold and silver prices with this increased activity in your company?
Praveena Rai
So the global factors around price volatility will play a role in addition to other contributing factors of participation products and so on. So whether it is price up or price down, volatility will bring in factors where derivative exchange has a role to play. Having said that, if the extent of volatility were to sort of completely normalize, we will see the momentum of growth steady. Though we do believe we will have new baseline over which the growth will be happening. Now having said that, I think this is where we draw comfort from the various segments in which we are operating.
So there have been periods of time where energy has been volatile and the exchanges played a role there. In recent times we have seen bullion being far more volatile and exchange. So I think these macro factors will play a role. The macro factors also have a perspective of sort of various segments playing out in the global and domestic markets and the sort of level up baseline that we believe that we will have. So all of these will, will play a role.
Unidentified Participant
Good. I mean this Hypothetically thinking of a situation where say for next few quarters the price for bullion, both gold and silver, doesn’t increase, remains flat or comes down. In that scenario also, do you see that what you have in terms of volumes currently are the baseline and you would only grow from here or do you see a possibility for decline in the volumes as well? More specifically.
Praveena Rai
See we can’t give any forward looking forecasts on the price or the sort of scenario you are drawing out. It’s a difficult one to say. As I said, volatility is the broader environment in which the exchange plays a role. Will volatility become zero? You know, globally is not a prediction, you know, that we can make and it hasn’t happened so far.
Unidentified Participant
Okay, thank you.
operator
Thank you, thank you. Ladies and gentlemen, we take the last question from the line of Abhishek Jain from Shikarji Advisors. Please go ahead.
Unidentified Participant
So. Very good numbers from your side. My most of the questions are just answered so no questions any from my side. Thank you for this opportunity.
Praveena Rai
Thank you Abhishek.
operator
Thank you ladies and gentlemen. With that we conclude the question and answer session. I now have the conference over to Ms. Praveena Rai for her closing comments.
Praveena Rai
Thank you very much to everybody for participating. These interactions are very valuable. I think it also helps us to reflect with your questions as much as we have to offer in the kind of commentary you ask of us. I hope the interactions have been useful in helping you understand both our business as well as the various drivers that are implied and impacting the results that we have seen. So look forward to staying connected until next time.
operator
Thank you on behalf of Multi Commodity Exchange of India Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.