NCDEX to Invest Up to ₹600 Crore in New Equity and Derivatives Segment

The National Commodity & Derivatives Exchange Limited (NCDEX) announced on February 12, 2025, its entry into the equity and equity derivatives segment, marking a significant diversification beyond its traditional agricultural market. The decision was made during the exchange’s 155th Board Meeting held on Wednesday.

“The Board of Directors of the Exchange at its meeting held on Wednesday, February 12, 2025, approved the launch of the Equity and Equity Derivatives segment in the Exchange based on a feasibility study and business plan prepared for the same,” NCDEX said in an official statement.

Estimated Investment For Expansion

The estimated investment for this expansion is expected to be between ₹400 crore and ₹600 crore. NCDEX emphasised that this move would allow the exchange to leverage opportunities in the large and rapidly growing equity market while also creating synergies that could benefit its existing agri-segment operations.

“The Exchange will benefit from its entry into the equity and equity derivatives segment as the segment is very large, and growing and offers an opportunity for NCDEX to diversify beyond the agri segment. The diversification is also expected to benefit the agri segment through significant synergies,” NCDEX added.

The announcement was made alongside the release of the exchange’s unaudited standalone and consolidated financial results for the third quarter of the financial year 2024-25 (Q3FY25), covering the nine months ended December 31, 2024.

NCDEX Q3FY25 Financial Performance

NCDEX reported an increase in its consolidated net loss for the third quarter of FY25 on a year-on-year (YoY) basis. The exchange’s consolidated net loss widened to ₹11.61 crore in Q3FY25, compared to ₹10.91 crore in the same quarter of the previous year. However, sequentially, the net loss showed improvement, narrowing from ₹15.04 crore recorded in the quarter ended September 2024.

The exchange’s consolidated revenue from operations for Q3FY25 saw a 4.93% decline on a YoY basis, falling to ₹21.59 crore from ₹22.71 crore in Q3FY24. However, on a sequential basis, revenue rose by 10.6% from ₹19.52 crore reported in the quarter ended September 2024.

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