Gross NPA reduced to 1.94 per cent and net NPA declined to 1.65 per cent, reflecting disciplined credit management

Mufin Green Finance Limited (MGFL), India’s first listed EV and Mediclaim Financing NBFC, has reported a transformational performance for the financial year ended March 31, 2026. The Company’s Assets Under Management (AUM) surged 83.8 percent year-on-year to Rs 1,541 crore, while Profit After Tax (PAT) nearly tripled to Rs 28.21 crore. For the fourth quarter alone, PAT rose 183.5 percent year-on-year to Rs 11.03 crore, underscoring the strength of its product-led growth model. MGFL also secured a credit rating upgrade to A- (Stable) from Acuite, reflecting improved fundamentals and enhanced lender confidence.

Interest income for FY26 stood at Rs 206.98 crore, up 29.8 percent from Rs 159.47 crore in FY25, while Net Interest Income rose 24.2 percent to Rs 86.93 crore. Pre-provision operating profit expanded 36.6 percent to Rs 165.08 crore. Provisions and write-offs increased to Rs 7.05 crore, yet profitability remained robust with Profit Before Tax rising 39 percent to Rs 37.98 crore. Asset quality improved materially, with Gross NPA declining to 1.94 percent from 2.48 percent and Net NPA reducing to 1.65 percent from 2.11 percent. Capital adequacy remained strong at 32.23 percent, well above the RBI’s 15 percent floor, while leverage moderated to 2.43x from 2.60x. Operational efficiency also improved, with the cost-to-income ratio falling to 45.8 percent from 47.5 percent.

On the balance sheet front, total disbursements for FY26 reached Rs 1,767.59 crore, more than doubling from Rs 805.99 crore in FY25. Borrowings nearly doubled to Rs 1,397.60 crore, while net worth grew 112.6 percent to Rs 574.65 crore. Total assets expanded to Rs 2,027.51 crore, supported by cash and liquid assets of Rs 149.07 crore. The Company’s borrowing base is now diversified across more than 40 lenders, including DFIs (36.68 percent), PSU banks (14.60 percent), private banks (10.41 percent), NBFCs/FIs (18.12 percent), and NCDs (20.19 percent). The rating upgrade has unlocked access to PSU co-lending, DFI capital, and insurance/pension fund participation, reducing the cost of borrowings to 12.17 percent in Q4 FY26, down 163 basis points during the year.

Business momentum was broad-based, with AUM comprising Mediclaim Financing (39 percent), EV & Solar Financing (30 percent), Other Loans (29 percent), and Salary Saathi (2 percent). Collection efficiency remained consistently above 96.5 percent across all segments. Stage 2 assets declined sharply to 5.90 percent from 12.60 percent year-on-year, demonstrating disciplined credit management. Operating expenses were nearly flat at Rs 10.40 crore in Q4 FY26 compared to Rs 10.45 crore in Q4 FY25, despite the significant scale-up in AUM, highlighting visible operating leverage.

Commenting on the results, Kapil Garg, Promoter & Managing Director, said: “FY26 has been a defining year for Mufin Green Finance. Nearly doubling our AUM while simultaneously improving asset quality, reducing borrowing costs, and nearly tripling our PAT demonstrates that our focused, product-led model is delivering scale with discipline. The A- credit rating upgrade is a major milestone—it widens our lender universe, reduces our cost of funds, and positions us well for the next phase of growth. Our flagship Mediclaim Financing product continues to command strong yields with robust collection efficiency, while our EV & Solar vertical is gaining traction as India’s green transition accelerates. Looking ahead to FY27, we remain focused on profitable growth, further cost optimization, and advancing our green finance mission.”

Founded in 2016 and headquartered in New Delhi, Mufin Green Finance Limited is backed by Incofin India Progress Fund and operates across four verticals—Mediclaim Financing, EV & Solar Financing, Salary Saathi, and Other Loans. With ratings of A- (Stable) by Acuite and A+ (SO) by CRISIL on its securitized pools, the Company remains committed to advancing green mobility, renewable energy, and inclusive financial access.