Following the exchange's regulatory approval to launch electricity derivatives, which was a first for India and a major turning point in the development of its energy trading scene, shares of the Multi Commodity Exchange of India (MCX) increased by more than five percent to hit a record high of Rs.7,820 on the BSE.

In a filing, the business stated that the electricity derivatives contracts that MCX is introducing will enable generators, distribution companies, and large consumers to better manage price risks and guard against price swings, ultimately enhancing the efficiency of the power market.

This innovative project positions MCX as a pioneer in commodity trading innovation and advances India's objective of boosting capital market development and sustainable energy.

It also aligns with the broader goal of "Viksit Bharat" and is a significant step in improving India's energy markets.

“The introduction of electricity derivatives marks a pivotal development in India’s commodities ecosystem. These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms”, remarks Praveena Rai, MD & CEO, MCX.

With India’s growing focus on renewable energy and open access power markets, electricity derivatives can serve as a vital bridge between the physical and financial sectors”, says Praveena.

 

Due to increased revenue, MCX's consolidated net profit increased by 54.15 percent to Rs.135.46 crore in the fourth quarter of the 2024–25 fiscal year.

According to a regulatory filing, the company's net profit for the same quarter last year was Rs.87.87 crore.

In the March quarter of 2024–25, total income increased by 60.68 percent to Rs.320.49 crore from Rs.199.45 crore the previous year.

During that time, expenses rose from 92.96 crore to 152.96 crore.

The company's consolidated net profit for the entire fiscal year 2024–2025 increased by more than six times, to Rs.560.04 crore, from Rs.83.11 crore the year before. For the fiscal year 2024–2025, the board has suggested a final dividend of Rs.30 per equity share.

Also Read: Favorite Global Destinations of Indian Leaders

In the short term, the stock presently seems stretched. To safeguard gains, traders with positions should trail stops below Rs.7,650 on a closing basis.