The National Commodity & Derivatives Exchange (NCDEX), India’s leading agri-commodity exchange, has released its consolidated financial results for FY25. On the surface, the reported net profit of ₹234 crore may look encouraging for investors exploring opportunities in the unlisted space. However, a closer analysis reveals that this impressive number is not a reflection of operational excellence but rather a result of one-time exceptional gains from asset divestments.
In FY25, NCDEX reported revenue from operations of ₹122 crore, down from ₹136 crore in FY24. This 10% decline highlights the exchange's ongoing struggle to:
Attract meaningful trading volumes,
Compete effectively with MCX in the commodity derivatives market, and
Deepen participation from both institutional and retail investors.
Despite continued investments in new contracts and technology, NCDEX’s revenue base remains fragile. The weak market depth and limited product traction have restrained the platform’s ability to scale sustainably.
The net profit of ₹234 crore in FY25 was not earned through core operations but was generated through the sale of strategic investments. Two major divestments during the year included:
Stake Sold: 16.22%
Shares Sold: 1,31,41,000
Amount Realised: ₹27 crore
Per Share Sale Price: ₹20.54
Current Unlisted Market Price: ₹56
NERL Business Model: NERL is one of two licensed electronic repositories under WDRA. It facilitates electronic Negotiable Warehouse Receipts (eNWRs), digitizing agri-commodity storage and trade. NERL earns through storage registry fees and integrations with exchanges and stakeholders in the agri-market ecosystem.
Valuation Insight: The divestment was carried out at less than 40% of the prevailing unlisted market price, raising questions about value realization for NCDEX shareholders.
Stake Sold: 16.01%
Shares Sold: 93,63,287
Amount Realised: ₹156 crore
Per Share Sale Price: ₹166.58
Recent Funding Price: ₹265
Current Unlisted Market Price: ₹345
PXIL Business Model: PXIL is one of two licensed power exchanges in India. It facilitates trading of Day-Ahead Markets (DAM), Term-Ahead Contracts, and Renewable Energy Certificates (RECs).
Recent Institutional Investment: Notably, Norwest Venture Partners recently acquired a 5% stake in PXIL, reinforcing the institutional faith in India’s clean energy infrastructure and the rising relevance of transparent, technology-driven power markets.
Valuation Insight: NCDEX exited at a price far below the recent funding round and unlisted market levels, indicating a significant discount in valuation.
While NCDEX has managed to post a headline profit, the performance of its core trading platform continues to deteriorate. Without the one-time exceptional items, NCDEX would have recorded a significant operational loss in FY25.
Moreover, the sale of high-potential assets like NERL and PXIL, both aligned with long-term structural trends in AgriTech and Clean Energy, may weaken NCDEX’s future growth prospects and strategic positioning.
For investors in the unlisted space, NCDEX’s FY25 numbers should be read with caution. The apparent profitability masks fundamental issues in the exchange's operational performance. Divestments at undervalued prices might offer temporary relief but do little to build long-term shareholder value.
Until core trading volumes revive and deeper structural reforms are undertaken, NCDEX risks being a value trap disguised as a turnaround.