NCDEX FY25 Results

04 July 2025

• Financial Highlights: The National Commodity & Derivatives Exchange (NCDEX) has reported a net profit of ₹234 crore for FY25, which might seem promising at first glance for investors in the unlisted sector. However, a deeper look into the financial results reveals that this figure is largely driven by one-time exceptional gains from asset sales, rather than operational efficiency. In contrast, the exchange experienced a 10% decline in revenue from operations, which fell to ₹122 crore from ₹136 crore in FY24, highlighting ongoing challenges in attracting trading volumes, competing against the Multi Commodity Exchange (MCX), and engaging both institutional and retail investors.
  
• Operational Highlights: The profit reported for the year is primarily attributed to significant divestments, including a 16.22% stake in National E-Repository Ltd (NERL), which generated ₹227 crore, and a 16.01% stake in Power Exchange India Ltd (PXIL) that brought in ₹156 crore. Both transactions were executed at prices significantly lower than their prevailing market values, raising concerns about value realization for NCDEX shareholders. NERL, which focuses on digitizing agri-commodity storage, and PXIL, a platform for power trading, are both strategically aligned with growing sectors—agriculture technology and clean energy.
  
• Future Outlook: SEBI has permitted Universal Stock Exchanges like NCDEX to offer equity and index derivatives. Current volumes in equity derivatives are massive (>$21B ADTV in options alone). Market coupling, index expiry reforms, and demand for alternate platforms open space for new entrants. Downside is that the equity market is dominated by NSE and BSE; entry barriers are high despite regulatory support. Current operations are loss-making; profitability depends on scaling new businesses quickly. Execution risk in raising capital and launching new segments as per SEBI timelines.