MCX India Market Intelligence Brief February 19, 2026 Shares of the Multi Commodity Exchange of India (MCX) have demonstrated exceptional momentum, delivering returns of **113%** over the past year. This rally has been primarily catalyzed by a historic surge in bullion. In 2025, silver prices soared by **170%** and gold by over **60%**, driving massive trading interest. The momentum extended into early 2026, with silver rising another **70%** before hitting a record high of **₹4.20 lakh** per kg on January 29. However, the market recently underwent a sharp correction, with silver tumbling **42%** and gold slipping **20%** from their respective peaks. Strategic Margin Revisions To manage the resulting volatility, the exchange had previously implemented strict additional margin requirements. As of today, February 19, 2026, MCX has officially withdrawn these extra charges: * **3% additional margin** on gold futures removed. * **7% additional margin** on silver futures removed. This easing is expected to significantly lower the capital outlay for traders, likely boosting liquidity and participation in bullion contracts. The market has reacted positively to this operational shift, with MCX shares jumping over **3.2%** in today's session to trade near **₹2,419**. Trading Volume Dynamics The exchange is witnessing a notable structural shift in how participants interact with precious metals. While high margins recently caused a sharp contraction in futures activity—with gold futures daily turnover falling **41%** month-on-month—options trading has remained resilient. Options premium turnover now represents a growing share of MCX revenue. This follows a pattern seen during previous periods of extreme volatility, where traders favor options to manage risk without the heavy capital requirements of futures. Bullion remains the backbone of the exchange, accounting for roughly **69%** of the average daily turnover. Financial Performance & Valuation The financial health of the exchange remains robust. For the quarter ending December 31, 2025 (Q3FY26), MCX reported: * **₹666 crore** in revenue from operations, up **121%** year-on-year. * **₹401 crore** in consolidated net profit, marking a **151%** surge. * **62.7%** operating profit margin for the fiscal year. Despite these strong fundamentals, the stock's rapid appreciation has raised valuation concerns. MCX currently trades at a price-to-earnings (P/E) ratio of approximately **62x** to **65x**. This represents a significant premium compared to the broader Indian capital markets industry average of **23.4x**. Analysts remain divided on whether the current price levels are sustainable or if the market has already priced in the anticipated growth from the new margin regime and high bullion prices. Immediate technical resistance is identified at **₹2,450**, with a 52-week high of **₹2,705** serving as a key benchmark for future momentum.