NCDEX Unlisted Share Analysis: How It Is Moving From India’s Agricultural Commodity Exchange to a Broader Financial Market Platform

National Commodity & Derivatives Exchange (NCDEX), which is trading in the unlisted market at ₹392 per share, has been closely associated with India’s agricultural commodity market. Guar seed, guar gum, coriander, cumin, turmeric, mustard seed and castor seed have traditionally been at the heart of its trading ecosystem. Farmers, traders, processors, investors and institutions use the exchange for commodity price discovery and risk management through futures, options and other commodity derivatives. However, India’s commodity derivatives market has changed significantly over the past few years, and NCDEX is now attempting to change with it.

NCDEX and India’s Changing Commodity Derivatives Market

NCDEX was built around India’s agricultural economy and continues to have a strong presence in agricultural commodity derivatives. Its electronic platform allows participants to trade commodities, while National Commodity Clearing Limited (NCCL) manages the clearing, settlement and counterparty risk associated with trades. The exchange offers contracts across agricultural commodities, spices, pulses, oilseeds and other products. Its major products include wheat, maize, guar seed, guar gum, paddy, coriander, cumin, turmeric, pepper, mustard seed, castor seed, chana, bajra and cotton.

In FY26, India’s commodity derivatives market exploded, with total commodity derivatives turnover reaching ₹1,404.94 lakh crore, compared with ₹587.84 lakh crore in FY25. Futures turnover increased from ₹71.41 lakh crore to ₹166.43 lakh crore (+133.1%), while options (notional) turnover rose from ₹508.31 lakh crore to ₹1,221.68 lakh crore (+140.3%). Options premium turnover increased from ₹8.12 lakh crore to ₹16.83 lakh crore (+107.2%).

The Commodity Market Grew, But Agriculture Lost Its Share

So, at this point, the market looks great for NCDEX. But when we look at the data more closely, the picture changes. The agri segment of the total turnover in FY26 recorded ₹1.8 trillion, accounting for around 0.13% of the combined turnover, while the non-agri segment recorded ₹1,386 trillion. Within non-agri, bullion contributed ₹817 trillion, followed by energy at ₹551 trillion and base metals at ₹18.4 trillion.

The shift becomes even clearer when we look at the market from FY18. The agricultural segment’s share of total turnover declined from around 12% in FY18 to just 0.1% in FY26. At the same time, bullion increased sharply from around 23% to 58.9%, highlighting the growing dominance of non-agricultural commodities, particularly precious metals.

Where Does NCDEX Stand in This Market?

So, what share does NCDEX have if it is primarily focused on the agricultural market? NCDEX has 19 agricultural and 1 non-agricultural commodity traded on its platform, compared with MCX, which has 5 agricultural and 13 non-agricultural commodities.

The market share of NCDEX has declined sharply from around 10% of India’s commodity derivatives turnover in FY18 to just ~0.1% in FY26, while MCX has increased its share from around 90% to 98.9%. This means NCDEX has lost a significant portion of the overall commodity derivatives market to MCX.

Why Did NCDEX Lose Market Share?

There are various reasons behind this decline. The sharp fall in NCDEX’s market share is partly linked to the suspension of trading in derivative contracts of several major essential agricultural commodities, initially introduced in December 2021 and extended until March 31, 2027. This has constrained trading activity in key agricultural contracts.

Another factor has been the strong performance of non-agricultural commodities. During FY26, silver rose 140.7% and gold gained 66.2%, which led to increased trading activity in these segments and benefited exchanges such as MCX, which has a much stronger presence in bullion and other non-agricultural commodities.

How Did This Affect NCDEX’s Turnover?

The impact can be seen in NCDEX’s turnover numbers. In FY26, NCDEX futures turnover increased 4.3%, from ₹1.36 lakh crore to ₹1.41 lakh crore, while its options notional turnover surged 165.6% to ₹33,011 crore and options premium turnover doubled by 100% to ₹209 crore.

In comparison, MCX futures turnover grew 135.4% to ₹164.88 lakh crore, options notional turnover increased 143.9% to ₹1,207.40 lakh crore, and options premium turnover rose 107.1% to ₹16.73 lakh crore.

NCDEX’s turnover increased, but compared with the size of MCX, it remains very small. This can also be seen in its revenue, which reported around 3% revenue growth in FY26. This is one of the reasons why NCDEX is moving from an agricultural commodity exchange towards a broader financial-market infrastructure platform.

How Is NCDEX Expanding Beyond Agricultural Commodities?

Under MD & CEO Vikas Goel, NCDEX is moving towards a broader financial-market strategy involving mutual fund distribution, cash equities and equity derivatives. One of the key initiatives in the new strategy is NCDEX Nidhi, through which the exchange has entered the mutual fund distribution space. NCDEX has a network of more than 1.3 million farmers and around 800 FPOs, and the company intends to leverage this ecosystem to expand access to mutual funds in rural and underserved markets.

Under this model, FPOs can become mutual fund distributors, while asset management companies can use this network to reach B-30 and rural markets. If the strategy succeeds, NCDEX could convert its existing agricultural network into a broader financial-product distribution channel.

This is important because it changes the potential value of the company’s farmer ecosystem. Instead of being relevant only for commodity trading, the network could potentially support additional financial services and create new revenue opportunities.

When Will NCDEX Enter Cash Equities and Equity Derivatives?

NCDEX has completed system integration for its cash-equity segment, with user acceptance testing underway. The exchange plans to launch equity derivatives approximately six months after cash equities, subject to regulatory approvals.

For this expansion and growth strategy, NCDEX has raised ₹770 crore through the issue of 3,90,18,973 new equity shares at approximately ₹197.34 per share. The shares were allotted to 61 investors.

The investor base included names such as Groww, Globe Capital Market, Acacia Banyan Partners, Kotak Mahindra Life Insurance, Tower Research Capital, Share India Securities, Jainam Broking, Radhakishan Damani, Rainmatter Investments and Citadel Securities.

How Is NCDEX Performing Today?

The company’s Q1 FY27 results provide another important piece of the NCDEX growth story. NCDEX reported revenue of ₹50.61 crore in Q1 FY27, compared with ₹30.41 crore in Q1 FY26. This represents 66.4% YoY growth. Revenue also increased 12.1% QoQ from ₹45.13 crore in Q4 FY26.

Profitability also showed improvement. NCDEX reported an EBITDA loss of ₹6.58 crore, compared with an EBITDA loss of ₹13.91 crore in Q1 FY26 and ₹10.72 crore in Q4 FY26. The company’s PAT loss narrowed to ₹8.30 crore, compared with ₹13.79 crore in Q1 FY26 and ₹9.80 crore in Q4 FY26.NCDEX remains loss-making, but the direction of its financial performance has improved.

NCDEX’s Transition From an Agri Exchange to a Financial Market Platform

NCDEX is at an important transition point. From guar seed and spices to mutual funds, equities and derivatives, the exchange is attempting to move from being an agricultural commodity platform to becoming a broader financial-market infrastructure business. For the unlisted market, that transformation could become the most important part of the NCDEX investment story.