Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Multi Commodity Exchange of India Limited (NSE: MCX) Q4 2026 Earnings Call dated May. 11, 2026
Corporate Participants:
Praveena Rai — Managing Director and Chief Executive Officer
Unidentified Speaker
Chandresh Shah — Chief Financial Officer
Analysts:
Shrenik Mehta — Analyst
Devesh Agarwal — Analyst
Amit Chandra — Analyst
Bhavya Sanghvi — Analyst
Unidentified Participant
Akhilesh Bhatta — Analyst
Lavanya Todla — Analyst
Deepak Kumar Ajmera — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Multi Commodity Exchange of India Ltd. Q4FY26 earnings conference call. Joining us on the call are Ms. Praveena Rai, Managing Director and Chief Executive Officer, MCX Mr. Rishi Nathani, Managing Director and Chief Executive Officer, Multi Commodity Exchange Pairing Corporation Limited Mr. Chandaresh Shah, Chief Financial Officer, MCX and Mr. Manoj Jain, Chief Operating 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 and then zero on your touchtone 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’. Am.
Praveena Rai — Managing Director and Chief Executive Officer
Thank you very much and good evening everybody. It’s wonderful to be here. Warm welcome to all the participants joining us for the call. It’s been a good year with good results and I’m very pleased to report this very exceptional year building strong momentum that we have seen in earlier quarters and we’ve had a robust close with the last quarter as well. This performance reflects strength across our volumes, the product innovation as well as market participation and it reinforces the relevance of commodity derivatives in India’s financial ecosystem.
Now for this quarter we have delivered. In trading activity as well as participation across all our segments during the year. We navigated periods of high volatility and challenging market conditions across multiple commodities including potential delivery risks which are all very strongly, rigorously and effectively managed with minimum disruption to market functioning. In fact, I would say I call it one of our highlights of last year that the market integrity was maintained at the highest level despite a lot of broader economic risks that came our way for the full year FY26 the consolidated revenue from operations more than doubled to 2,302 crores and this was supported by nearly a 2 1/2 times increase in the average daily turnover across both futures and options.
The profit after tax crossed 1300 crores and EBITDA at 1774 crores reflected both the scale benefits and the continued cost discipline. To strengthen the commodity derivatives ecosystem we’ve initiated a focus drive price in India Hedge in India. This promotes and deepens hedging participation within India for SME as well as corporate hedges. Institution and retail investors have also increasingly embraced the commodity asset class, leading to broader and deeper market participation. Our product development efforts focused on contract innovation
Unidentified Speaker
And
Praveena Rai — Managing Director and Chief Executive Officer
Enhanced framework contribute to deeper liquidity as well as wider market access. Importantly, the growth we are witnessing is structural. Along with taking advantage of cyclical tailwinds, increasing participation from a diverse set of market participants, improving awareness acceptance of commodity derivatives, introducing more participants to both the hedging instrument as well as the asset class positions as well for sustained expansion. Looking forward, we are confident in our strategy positioned to capitalize the next phase of growth in India’s commodity derivative market.
As we scale, we are focused on the high standards of governance, risk management and market integrity. Strengthening infrastructure, continuing to invest in our technology and delivering a seamless trading experience will be top priorities. Our emphasis will be on innovation, liquidity enhancement and long term value creation for all our stakeholders. We thank our regulators, member brokers, participants, our partners and all stakeholders, including our shareholders for their continued trust and support in mcx.
So I now conclude my opening remarks and happy to take questions. We have our management team here with us as well.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchstone phone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue. Our first question comes from the line of Srinik Mehta from Indo Health Wealth. Please go ahead.
Shrenik Mehta
Hi, I just wanted to check regarding the statement that you made about large part of this growth being structural and what are the factors that you’re seeing which is helping you to say that factor. You know we see clearly bullions really driving most of the volumes and the bullion volatility is also driving a lot of this picture. If you could throw some lights it will be fantastic.
Praveena Rai
Yeah, so you know our two big drivers of volume are energy and bullion. We’ve seen growth across both of these. While of course bullion has had a much higher growth and we are very happy about that. It has grown more than four times. The energy growth has also been good and strong over a very high base. So this really makes both of them strong constituents for mcx now globally and in India. You know we see there are certain points in time when the requirement around bullion will be stronger and There’ll be times when the requirements around energy will be stronger and perhaps times when both are equally important.
So we do see that they both create that sort of balancing with and alongside each other. And this along with the kind of opportunity in the Indian space, the kind of commodity markets needed to support the growth in the country, the sort of early growth stage in which the overall market is of which MCX is a large participant, all create that structural foundation. There’s still a lot more opportunity when it comes to what can be done, regulatory wise, policy wise, etc. Etc. And we believe over the years that will also play out.
So yes, there is a cyclical component, but there is a deep structural component also.
Shrenik Mehta
Okay, so you believe really the momentum is continuing the way you the trend in the last few months.
Praveena Rai
So we believe the coming year will be a strong year. Exactly how each quarter will play out. Of course we will wait and see. The numbers are. But we believe the year will be a strong year.
Shrenik Mehta
All right, thank you for this.
Praveena Rai
Thank you Shanik.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit yourselves to two questions per participant and rejoin the queue for any other follow up questions. Our next question comes from the line of Devesh Agarwal from IIFL Capital. Please go ahead.
Devesh Agarwal
Thank you everyone for the opportunity and firstly congratulations to the entire team for a great set of number. Ma’, am, my first question would be there was a consultation paper which talked about allowing FBIs into gold and silver contracts. So one, if there is any update you can give us. And secondly, what is the contribution that we have from FPIS in the energy products that is Crude oil and natural gas?
Praveena Rai
Hi Devesh, thank you very much for the wishes. So having FBIs to participate broadly in the commodity space going beyond the cash settled segment is certainly critical on the agenda. It’s something that there has been a fair amount of debate and consultation. As you know, there’s also the consultation paper that is out there. We are also contributing strongly in it. So we will of course wait for the results of this paper to come out and you know, then we will take it forward from there. Now the FBI contribution, as you know, is primarily in the energy segment because it’s the cash settled segment.
Our onboarding of FPIS has been strong. The pipeline is also strong. The contribution currently stands at about 2 to 3% of ADT. And within the energy segment they are a significant contributor. I would say that they are in the double Digit contribution of energy while at the broader MCX level they will be at about a 2 to 3% and we see this number growing.
Devesh Agarwal
Right sir? Right, ma’. Am. And secondly ma’, am, if hypothetically if you were to say that regulator allows co location in commodities in what time will be able to roll out these services to the traders? What is the preparedness that we have to introduce colocation services.
Praveena Rai
If this were to get permitted by the regulator, we’ll be able to take this to market fairly soon within the kind of market requirements required. So we don’t think we will not be on the back foot there.
Devesh Agarwal
The only reason to ask this was because the competition already offer co location services and equities. So they are already at it. And do we also have prepared to kind of introduce in within a month or so?
Praveena Rai
Yes, Devesh, we do have our plans in place and we’ll be able to activate them at short notice.
Unidentified Participant
Perfect. And I had two accounting. Sorry to interrupt.
Operator
Sorry to interrupt, Mr. Agarwal. No worries, no worries. It’s okay. Thank you so much. Thank you. Your next question comes from the line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Yeah, thanks for the opportunity. And my, my first question is on the increase in the UCC that we have seen. So for the full year it’s up by 64%. I’m very hardening to see this but obviously it is because of onboarding of some of the discount brokers, not discount brokers. So is it fair to assume that the increase in the UCC is in the base or we can see furthermore participation in terms of more retail clients coming and trading onto the commodities because we are in terms of number of people trading, we are at 35% of what it is there in equities.
So. And what is driving such a steep expansion in terms of the people who are trading on the commodities? Is it only the volatility or you see some active participation across or it is more like broad based.
Praveena Rai
Hi Amit. So Amit, we would want to see a sort of democratic increase in participation without being overly aggressive in any one space. I think I’m quite happy with where we stand on the retail side. We don’t believe that everyone who is an equity investor will end up becoming a commodity investor. So we are seeing the numbers ramp up steadily and evenly and we will continue to retain our efforts in that growth. Lot of actions that have been taken that we have worked with the market as well as you said, with digital members, digital brokers looking at things like the Consolidated ledger Looking at user experience of MCX trading vis a vis the ETC markets.
I think a lot of work went into that last year and we are seeing the benefits of that. We think there is more user experience, opportunity to streamline and continue to see interest in the retail segment. Having said that, as we look at the numbers from the AMCs, the mutual funds and many other segments like wealth and so on. So we do believe that retail will also find these channels to start participating in the commodity market. So not all of this will be very straight and there has been regulatory action where there is a lot more flexibility and opportunity that mutual funds will see in the coming months when it comes to increasing the kind of commodity exposure in their portfolios.
So we think retail will participate in all these ways and overall we’d like to see that a broader multi segment participation.
Amit Chandra
Okay. And ma’, am, my second question is in terms of the product pipeline. Obviously you have mentioned last time also that we are we will be launching some of the metal contracts. So where we are in terms of the launch of some new products which can further diversify our volume contribution. Plus in terms of the index options scaling up, is it only the FBI is not being allowed into non cash flow commodities is the only bottleneck there or is there some other things which is stopping the index options to scale up?
And secondly there was an article in the newspapers which talked about some weekly contracts also being considered in the index side. Like what are your views on that? Thank you.
Praveena Rai
Yeah, so I think I’ll first comment on this newspaper article and we’ve in fact put out our own response on X that you know, misleading media information is really getting published. So I will not really comment on that. But the question that you asked on what is the core question. On product pipeline? We do have a strong pipeline. You know, we had a certain number of products that we wanted to look at last year and we launched according to what we thought the market will be appropriate in taking.
We are prepared with our next lot of products and we again will look at the suitable requirements in energy in metals as well as other segments now amongst the indices. Interestingly, while we did talk a lot about the we found that this created a lot of interest in the futures segment and we are taking the feedback from the market in focusing our attention on futures on indices as well. Along with options. We will also be looking at moving further on metal decks this year. So there will be more work on the indices side as we both deepen and expand that portfolio.
Devesh Agarwal
Okay
Amit Chandra
Ma’, am, thank you. And all the best.
Praveena Rai
Thank you.
Operator
Thank you. Your next question comes from the line of Mitesh from Access Capital. Please go ahead.
Devesh Agarwal
Hi ma’, am, thank you for taking my questions. Most of the question has been answered just on the participation side. How have been the trends or in the participations in the month of April and May
Bhavya Sanghvi
So far?
Praveena Rai
Hi Mitesh. I don’t think they are commenting on this quarter. I think we’ll have to take your question in the next call. But there’s no dramatic cause for concern.
Unidentified Participant
Thank you ma’. Am.
Operator
Thank you. The next question comes from Akhilesh Pattar from Ampersand. Please go ahead.
Akhilesh Bhatta
Hi ma’. Am. Congratulations on a good set of results. I had two questions. So first one was regarding your competitor launching multiple bullion products and energy products in the last quarter and maybe from last year onwards. So what are we doing to sort of protect market share here?
Praveena Rai
Hi Akhilesh. So Akhilesh. Yes we are watching the space very closely. It is a large competitor and yes they have made their intention felt in the market with a lot of focus that they are placing on commodity segment. From whatever we see our bullion numbers remain untouched when it comes to market share share over the last two years. Some recent activity on changing, you know, expiry dates and so on in the energy segment is leading to some kind of shallow one day in a month activity. So I think it’s also quite misaligned with sort of global structuring on which our contracts are based and that is required for the integrity of the contract.
So at this stage I think we don’t want to be reacting and making any moves which are not cognizant with the way commodity products should operate. Being highly focused on the space, we understand the structuring of these products and what the market needs. So we will stay focused on a continuing to drive participation in the existing portfolio and looking at what the market needs by way of new products. So creating that awareness, bringing in new participants, creating more hedges, all of those core actions are in play and I think they’re keeping us in good stead.
Akhilesh Bhatta
Thanks a lot. One more question regarding rbi. You know, launching new lending norms for prop traders. So I just wanted to understand if you have done any sort of analysis on the sort of volumes that will be hit or maybe what sort of volumes are coming in from small prop traders versus big prop traders if we have any numbers around that.
Praveena Rai
So the RBI lending norms the way we see it could have a potential impact. RBI of course has given, you know, further, further extension allowing the market to plan their mitigating factors. And we are also in touch and working with members on the same. So there will be a certain segment of members across, you know, all segments of the trading markets who will have, you know, some of their credit lines, you know, impacted from this.
Akhilesh Bhatta
Thank you. That’s all, that’s all from my side.
Praveena Rai
Okay,
Operator
Thank you. Your next question comes from the line of Makarant Posekar from Proinvest Nirmiti. Please go ahead.
Bhavya Sanghvi
Hello. Am I audible?
Praveena Rai
Yes.
Bhavya Sanghvi
Hello. Congratulations on good setup number as we see a very good sequential growth in numbers. Top up, top line. I was expecting a kind of better expansion in margin but somehow the product license fees and other expenses line items grew faster than the revenue. So we could not see the expected margin expansion. So can you tell me if there is any one off in these line items or we can expect these as a normal base?
Praveena Rai
Makrin, thank you. You know, Makril, we are in growth phase and we are looking at actions to keep the market very, very relevant and to look at how we really develop the commodity markets to meet the requirements of the industry as well as the country as we have to mature and have more sophisticated offerings available across the board. And we have to keep our technology expense, our expense on our investments, on people. All of these elements have to be built out, continue to be built out, to be ready to execute the plans that we have.
So if you are asking whether our focus is going to be on margins in the coming months, our focus will be on efficiency. Our focus will be on ensuring that whatever we do is done in a manner that is most efficient, on cost and smart. But the focus is not going to be on spending less. We have to continue to spend smart and do the right thing to be prepared for the future.
Bhavya Sanghvi
Okay, so there was no one off items, right?
Akhilesh Bhatta
No. No.
Bhavya Sanghvi
Okay, thank you. My next question is as you said in the first answering the first question that you are expecting to the momentum to be continued. But when you look, when we look at the April numbers, the volume seems to have dipped down quite a bit. So do you think that we will be able to continue the sequential momentum?
Praveena Rai
So we do believe that we will have a strong year. Now, will every year, every quarter be a big jump over the previous quarter? Perhaps not. And we do see cyclicity in our business. We have seen that year on year where there are some quarters that are better than other quarters. So there will be macro factors that will play out. There will be cyclicity that plays out. And I think in the broader context we are in a strong and good place.
Bhavya Sanghvi
Okay. Thank you. All the best.
Praveena Rai
Thank you.
Operator
Thank you. Your next question comes from Lavanya from ubs. Please go ahead.
Lavanya Todla
Hello. Thank you for the opportunity, ma’. Am. And congratulations on good set of numbers. Most of my questions are answered. Just wanted to check on some of the cost line items. Software support charges. I mean it has been quite stable compared to the jump which we have seen last year in Q4. And second is on the SGF spends. So this time we have taken a much higher contribution to sgf. So how should one see this trend going ahead? Yeah,
Chandresh Shah
So. Hi Lavanya, this is Chandrash. So the SGF spend is more to keep our reserve fund in a healthy position. So that it helps us in taking some decisions and mitigate risk. So we always maintain the SGF at a healthy level and we’ll continue to do that. And it is in line with what we see, the business going up and how it is, how it is growing. And also SGF is a requirement of SEBI and it is computed based on the formula and calculation methodology given by sebi. And I think the other question you already answered that it is very much in line.
Deepak Kumar Ajmera
Software
Chandresh Shah
Support.
Lavanya Todla
Okay. Software support charges should be stable and incremental from here and most likely we should see no jump in Q4. Is that something one should build in?
Chandresh Shah
So yeah, like ma’ am explained in the previous call or previous caller’s response. So we are into growth phase and we will keep investing in the business as and when what is required. Only thing is that it will be done very efficiently. So. So when the business requirement is there, expenses will be incurred.
Lavanya Todla
Got it. Got it. Thank you. Thank you so much. All the best.
Chandresh Shah
Thank you.
Operator
Thank you. Your next question comes from Vedant Agarwal from iifl. Please go ahead.
Unidentified Participant
Hey. Hi. First of all, congrats on a great set of numbers. So I wanted to understand two bookkeeping numbers. So what has been the interest income on margin money for 4Q? FY26. And for the whole year? FY26. And I also wanted to again touch upon other expenses. Like we have seen a sharp jump in 4Q. So what has been the key driver behind this? So these are the two questions.
Chandresh Shah
So this quarter we have seen some increase in the margin money in terms of cash with the subsidiary. And that has helped in some increasing the income from that. And it is. It is 22 crores in this quarter. Sorry, 59 crores in this quarter as against 22 crores of previous year.
Unidentified Participant
Okay. 59 crores in this quarter versus 22 crores of last year. Quarter four. Okay. And also justified the increase in other expenses for this quarter.
Chandresh Shah
I think ma’ am already answered in the one of the previous response that the expenses are incurred to meet our market development activities and business related professional charges.
Unidentified Participant
Okay, fine. Thank you so much. That answers the question.
Operator
Thank you. The next question comes from the line of Bharat Shah from BCS Capital Ideas Ltd. Please go ahead.
Devesh Agarwal
Yeah, thank you Prabhu and hearty congratulations for very distinguished and defining results. I have two questions. The first one in this very what prima facie appears to be kind of scenario where volumes are rising rapidly, we have increased number of market intermediaries, we have increased number of clients through those intermediaries and our product engine is working well. And all of this is resulting into dramatic growth rates across our product lines and the businesses in such a we know very positive scenario.
What can go wrong if something has to go wrong and what can actually unravel or disturb the kind of great velocity that the engine is acquired?
Praveena Rai
I think it’s a fantastic question. And we of course track all risks at every stage. Certainly operating risk is number one and I think we’ve spoken in the past at length that while the market offers opportunities, the ability to operate and deliver to that opportunity is really not something one takes for granted. So whether it is the platform, whether it is our surveillance, whether it is our risk management, the operations of ccl, when it comes to margins and collateral, each and every element of this gets challenged when there is a high degree of uncertainty in the market.
So this is a risk we are very cognizant of. I would say we spend most of our time on in addition to all the other levers that you spoke about. So I would think this is a hidden lever to add to that list. The second is certainly the competition risk. I think this question was asked so we are cognizant that we have not had strong competition really and have been a majority market share player. How to continue to be agile on our toes, continue to innovate, you know, sort of challenge ourselves and really be our own, you know, competitor is the best way to stave that off.
So certainly that risk again holds a lot of our attention and of course I can go with a long list. The regulatory risk, etc. Being an MII, our entire focus on working within the compliance framework, again something that takes a lot of our attention with a strong compliance team, our investor services and relations, etc. Etc. So I think this will, if you ask me, probably Cover the top ones.
Devesh Agarwal
Praveen Ajay I did not mean routine or regular threats where the management competence will be there to match the competition. Obviously that remains an ongoing issue of vigil both within MCX as well as by the outside investors. Whether there can be regulatory oversight which can curtail the remit of the business. Obviously some such issues will always be there in the horizon. I did not really mean things of these kind. I mean operational, routine, risk, competitive risk. These are given. I mean, they have to be there for any good management to deal with and to fight on.
What I meant was, for example, if you look at iex, the energy exchange out of blue, the market coupling issue has come and that is very clearly derailed the situation because market price discovery is the key function of an exchange. And when that gets taken away, then the role of liquidity and management in order to facilitate that efficient discovery becomes commoditized and therefore exchange becomes commoditized. And we are seeing how IEX is struggling with that issue. If you look at, for example, in the equity markets three years back, where the, in the options, the share of BSE was next to nothing, I mean, it was just a shade above zero.
And today in about three, three and a half years, it has climbed to, on an incremental basis to almost about 37, 38%. I mean, that kind of a change is truly a dramatic one. So issues which are not in the realm of recognition because when things are good and healthy, risks don’t look really real and they appear distant in the horizon, but that’s actually where the risk.
Praveena Rai
Yeah. In the interest of time, if I may come in, I think I get what you’re saying. I think I sort of touched upon those and I think the examples that you gave are in the realm of uncontrollables. So I think we will be unable to really comment or really react to that question.
Devesh Agarwal
Okay. There is nothing. There you are. No, I. I’m just finishing my first question. Please allow me to complete. Is there anything in the realm of recognition that you are concerned about or worried about?
Praveena Rai
We are not worried. Okay. About anything specific. Okay.
Devesh Agarwal
My second and last question is. Sorry
Operator
To interrupt, Mr. Shah, may we request you to keep the questions, please? As I believe there are questions. This is not the first question.
Devesh Agarwal
This is the first question in the context of which I raised the question. If you can allow me to complete it, it will be faster.
Operator
Sir, may we request you to return. Okay, fine. Thank you for any follow up questions. Thank you. The next question comes from the line of Bhavya Sangui from Alchemy Capital. Please go ahead.
Bhavya Sanghvi
Congratulations on a great set of numbers. Most of my questions have been answered. Just one bookkeeping question. Can you give me the transaction charges for the quarter and split it up between options and futures. Thank you.
Chandresh Shah
So Future revenue for Q4 is 242 crores and Options revenue is 569 crores.
Operator
Thank you. Thank you. The next question comes from the line of Subdamania, an individual investor. Please go ahead.
Bhavya Sanghvi
Hello ma’. Am. Congrats on the great set of numbers. My questions have been previously answered. Thank you so much.
Devesh Agarwal
Thank you.
Operator
Thank you. Your next question comes from the line of Dharmal Shah from Balmos Capital Management. Please go ahead.
Unidentified Participant
Hi. Firstly congratulations on the great results. My first question could be on the similar lines like previous participants inquired about the competition. So like Bharat sir mentioned that equity exchanges are getting into not just the largest one but and the other one has also shown some interest in getting into the commodity side. So just wanted to check, I mean what are the key factors or drivers that would change retailers mindset to shift from retailers or when rather any trader to shift from MCX to other actions?
I mean what incremental do these exchanges have to offer so that they gain some market share?
Praveena Rai
Yeah. Hi Ramesh. As I said, of course competition is critical to watch out for and we should not take the competitive stance lightly. So as equity exchanges enter into the commodity space there could be some natural sort of synergies they have there. However, the biggest mote really is the liquidity we have in our contracts. So while it may be a tad easier, not much. As I said, we’ve done a lot of work on user journeys and so on and so forth and we continue to do so. So while it could be a tad easier, the real benefit for any participant arises from the fact that they’re there in a liquid exchange they can enter and exit as they require and they benefit from the overall investing or trading activity.
So I think these are critical for us and we think these are the biggest that we have. But we will continue to work in the space without ignoring the fact that we should overcompensate for any experiential simplicity that may be available to users otherwise.
Unidentified Participant
Understood. And last question would be again, there is one article in the newspaper today about some regulations being relaxed for agri commodities. So you think that could scale up in coming years and what could be the size? Could it be as big as energy or bullion or. That’s the rough sense There.
Praveena Rai
Sorry, I don’t think this, you know, there is this, this article but I’m not able to comment on the backdrop to it. Of course we are. We are in discussions and working groups with the industry and the regulator to look at various kind of policies that the industry and market requires. Agriculture is one of them. So we are participating and I think whatever opens up in that space will be beneficial and we will also be looking at how we play a stronger role there. I wouldn’t be in a position to share more than this at this point.
Please.
Unidentified Participant
Thank you. Just jumping back to the first question. You mentioned that liquidity is the core thing that MCX has for commodity derivatives. But like in case of equities as well. I mean BSE had gained within two years from India. Also zero liquidity in that sense. What made, I mean made. I mean what could go wrong in MSCX as well? I mean, just wanted to understand that is liquidity if, I mean there are. If these exchanges are coming up with more innovative products which might seem more attractive to the investors and could the liquidity over time, I mean build up for them as well?
Praveena Rai
You know, I think we gave our comments earlier that these are uncontrollables that we will not really be commenting on at this stage. The commodity market is at a fairly nascent to high growth stage. Certain actions might take place in mature markets with different objectives. So have. But having said that, this is not a space that we can really comment on. It’s not an actionable in our control.
Unidentified Participant
Thank you so much for answering. And on the next.
Praveena Rai
Thank you.
Operator
Thank you. Ladies and gentlemen, we request everyone to limit themselves to only two questions, speech per participant and rejoin the queue for any follow up questions. Our next question comes from the line of Madhukar from JP Morgan. Please go ahead.
Unidentified Participant
Hi, good evening. Thank you for taking my question. I’m just one question on sgf. How comfortable are we with the SGF position right now and what is our sort of continuing policy in terms of what percentage of transaction charges are we contributing? Have we put out that number indefinitely? That’s my question.
Devesh Agarwal
Yeah. So on sgf right now we’re in a comfortable position. We have a very good cushion on SGF
Chandresh Shah
And Madhukar. We have not put out any percentage or anything of transaction charges for hgf.
Unidentified Participant
Got it. So is there sort of a number in terms of what volume, option, premium or futures that we would be comfortable with and beyond which we would require. I know some simplistic measure to just know that.
Devesh Agarwal
So Madhukar is Just not a function of numbers. It’s also a function of volatility and margin levels. So it’s a combination of everything. So as volatility would increase or volumes would increase simultaneously and Y would increase then only with the SGF requirement increase. So it’s very difficult to predict all the moving parts altogether. Having said that, we are in a very comfortable position regarding SGF and as and when we have the requirement, we’ll plan for it.
Unidentified Participant
Finally, sorry to interrupt. May
Operator
We request you to the queue for any follow up questions please. Thank you. The next question comes from the line of Madhu Gupta from Quantum amc. Please go ahead.
Unidentified Participant
Thanks for taking my question. Congratulations for a good set of numbers. I just have two questions. First is what is the revenue that you’ve earned from the electricity derivative contract transaction chart which started in FY26, the trading of electricity derivatives? That’s first question. Second question is you recently won the license to set up a coal exchange. What is the roadmap there? What is the addressable market size and how do you plan to set up the exchange? And yeah, if you could share some plans regarding that.
Those are my two questions. Thanks.
Praveena Rai
So electricity contracts are still in early stage. At this stage rather than tracking revenue, we get the membership on coding, trading, throughput, so on and so forth. So we are happy. We’ve got about 50 participants from the commercial participant side and a large number of members who contribute and trade. The UCC numbers also are going up month on month. When it comes to coal, the coal exchange is an independent entity. It will not be part of MCX as a company, it will be a part of. It will operate as a subsidiary.
Since we are an MII under the regulatory ambit of sebi, we require the SEBI approval to go forward in this line of business. The line of business we see is closely associated with the what we do as a commodity derivatives exchange establishing a spot market in coal where there is a mechanism that exists. However, there is a lot of opportunity for structuring, consolidation, common platform, Pan India and so on. So I think that’s the opportunity we are looking at and we are in the early stage of establishing that entity and taking it forward at the right time.
Of course the suitable regulator in that space will then form the rules we’ll have to apply and. Etc etc. So there is, there are steps left before the actual entity starts getting operational.
Unidentified Participant
Okay, thanks. Thanks.
Operator
Thank you. The next question comes from the line of Deepak Ajmera from IGE India. Please go ahead.
Deepak Kumar Ajmera
Thank you. Congratulations on good Set of number and excellent leadership. My question is on electricity derivative. Ideally the potential for this market is significant and what sort of initiative, whether it is ministry, exchange, regulator or anything to develop this market that on that you are working, if you can highlight that will be helpful. Thank you.
Praveena Rai
Yeah, thank you Deepak. I think we are very excited about the electricity contract. Right from launch to date it has been growing month on month in its participation and presence in the market. We do work with the regulators, both SEBI and cerc but more importantly a lot of work with the state regulators because a lot of policy really comes from the state. Converting few discoms is a very important part of the plan. It takes more time but I think we are at a point where some of that is going to come in as well.
Looking at large traders who operate in the spot market has been important and those were some of the early steps that have been taken. And we are starting to see some of the the members and participants in the power space starting to participate regularly there. So staying engaged with both the production side, be it solar or other producers, the consumer side, a large industrial as well as the distribution side are all actions that we are in the midst of off.
Unidentified Participant
Thank you.
Operator
Thank you. The next question comes from the line of Amit Chandra from HDFC Securities. Please go ahead.
Amit Chandra
Yeah, thanks for allowing me to ask the question again, ma’. Am. I have two follow up questions. The first is on the competition. You have answered about that in detail but just to understand better. Is it the interoperability of the clearing corporations which is not there within equities and commodities? Is that the main reason why we are not seeing the shift of the liquidity from one exchange to another? And what’s your view on the regulator allowing interoperability? Maybe at a later stage. And secondly on the impact of the RBI regulation.
So the if you see the clearing corporation funding from FDS and the bank guarantees the total margin like money that the clearing corporation have, MCX has the highest in terms of 55 to 60% of the total funding of the clearing Corporation is through BGS versus 35% for the industry. So is it a higher risk for us in terms of the impact that we see from rba? Thank you.
Devesh Agarwal
So to answer your question on BGs and FDs, frankly for FDs it wouldn’t. In terms of bgs I think your numbers are wrong. BGS contribute a much lower percentage than it means. So while there may be an impact but not impact as much as you are saying,
Amit Chandra
So I’m talking About FDs and BGs combined, we don’t have the application, but yeah,
Devesh Agarwal
So you see, the large portion, the largest portion of that is fd. So I don’t think that would get affected to that extent.
Amit Chandra
Okay.
Devesh Agarwal
Secondly, on your interoperability questions, liquidity does not just go away due to interoperability. Liquidity begins liquidity. We have sticky liquidity. We have the industry participating. We have everyone, all the ingredients which help that. And also you have to understand, secondly, that interoperability is only possible when there is a 100% similar product. For example, in equity, the ISIN of the security is the same. That is why interoperability can be possible in commodities. Commodities may be different.
Amit Chandra
Okay, so the interoperability will not happen between equities and commodity. Right?
Devesh Agarwal
We’re not saying that. We’re just saying that end of the day, it’s up to the regulator, but it’s tougher to have.
Amit Chandra
Okay. Okay. So thank you.
Operator
Thank you. We will take the last question from the line of Devesh Agarwal from IIFL Capital. Please go ahead.
Devesh Agarwal
Yeah. Thank you for the opportunity again. Ma’, am, just one question, ma’. Am. We see that this has been a very strong year for us in terms of profit accretion and cash accretion. But despite that, we have seen that the payouts have kind of gone down. So just wanted to know your thoughts as to this cash that we are kind of conserving. What are exactly the plans for this and what is the spend that we are expecting for the next year?
Praveena Rai
Yeah, no, no, good question, Devesh. I think it’s important for us to have the sort of funding chest that is required as we look at our growth. And this is not just from more of the same standpoint. There would be both organic, inorganic opportunities that we will continue to be looking at new product segments, ancillary spaces. So there are certain strategies that are at very early stage, but we do have strong plans for the capital on hand.
Devesh Agarwal
All right, ma’, am, thank you so much and all the very best.
Operator
Thank you. Ladies and gentlemen. I would now like to hand the conference over to Ms. Praveena Rai MD and CEO MCH for her closing comments.
Praveena Rai
Yeah. Thank you. Thank you to all. It is a phenomenal set of questions. As always, we answer some. And you also leave us with a lot of food for thought to take back as we look at execution of our plans for this year and the coming quarter. I really enjoyed the discussion. All of us did. Have a good day and look forward to connecting next time.
Operator
Thank you on behalf of Multi Commodity Exchange of India, Ltd. That concludes this conference. Thank you, everyone, for joining us. And you may now disconnect your lines.