Multi Comm. Exc. Q1 FY27 Results (NSE: MCX)
Signal: Margin expansion
The read
MCX delivered another quarter of stellar YoY growth with EBITDA margin reaching a new high of 77.5%, marking the 5th consecutive quarter of margin expansion. Revenue jumped 88% YoY but fell sequentially from Q4FY26 levels, consistent with seasonal trading patterns. Operating leverage remains strong as employee cost grew only 28% vs revenue 88%. PAT growth of 103.5% was driven entirely by operations (other income/exceptional clean). EPS tracked PAT with no dilution. The sequential decline is not structural—Q1 is typically a lower volume quarter after a strong Q4. The trajectory suggests sustained profitability improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹702 Cr | 88.1% | -69.5% |
| EBIT | ₹523.29 Cr | 104.0% | |
| Net profit | ₹413.44 Cr | 103.5% | |
| EPS | ₹16.21 | 103.5% | |
| EBIT margin | 77.5% |
P&L walk
Strong YoY performance: revenue surged 88% on higher trading volumes, EBITDA margin expanded 1250bps to 77.5% as employee cost (+28%) and other opex grew far slower than revenue. PAT grew 104% in line with operations. Sequential QoQ dip is seasonal (Q4 normally peak).
Key positives
- Revenue ₹702 Cr grew 88.1% YoY, maintaining strong momentum from prior quarters.
- EBITDA margin expanded 1250bps YoY to 77.5% – a new high – driven by operating leverage (employee cost +28% vs revenue +88%).
- PAT grew 103.5% YoY to ₹413 Cr with clean earnings quality (other income <20% of PBT).
- EPS matched PAT growth at +103.5% – no equity dilution.
Key concerns
- Sequential QoQ revenue decline of 69.5% and PAT decline of 22% from Q4FY26, though partly seasonal (Q4 is peak).
- Product license fees (₹39.68 Cr) and statutory fund contributions (₹54.19 Cr) remain significant cost items, growing 80% and 102% YoY respectively – need to monitor regulatory pass-through.
Research and educational content only. Not investment advice.