Mufin Green Finance FY26: Fast AUM Growth and Lower NPA Trend

Mufin Green Finance Limited is an RBI-registered NBFC listed on NSE and BSE. In its Q4 and full-year FY26 investor presentation, the company positions itself around financing that supports India’s green transition, while also running a sizeable book in health insurance premium financing and secured MSME lending. FY26 was marked by sharp balance sheet growth, improving asset quality metrics, and visible operating leverage.

As of March 2026, the company reported assets under management (AUM) of 1,541.17 crore, up from 838.44 crore in March 2025, translating into 83.8% year-on-year growth. Disbursements for FY26 were presented at 1,767.59 crore versus 265.39 crore in Q4 FY25 on a quarterly comparison basis. Profitability also moved up materially: profit after tax for FY26 was 28.21 crore, and Q4 FY26 PAT was 11.03 crore.

A notable feature of the year was improving credit quality, with gross NPA reported at 1.94% and net NPA at 1.65% in Q4 FY26. Management also highlights collection efficiency consistently above 96.5%.

Portfolio build-out across four verticals

The presentation describes four verticals: Medicaim Financing, Salary Saathi, EV and Solar Financing, and Other Loans. Medicaim financing is positioned as the flagship product, aimed at converting lump-sum health insurance premiums into EMIs through point-of-sale integration with insurer platforms. The company states it has 10 plus insurer partners, with average ticket size of 55,000 rupees, tenure of 2 to 36 months, and yield in the range of 18 to 24% IRR.

EV and solar financing is presented as a core “green transition” pillar, spanning electric three-wheelers, four-wheelers, buses, batteries, chargers, and solar panels. The company discloses AUM within this vertical split into B2C AUM of 166.04 crore and B2B AUM of 293.00 crore. The deck highlights collection efficiency of 97.71% and a gross NPA of 1.94% (company-wide figure in the financial snapshot). It also emphasizes partnerships with OEMs such as Tata, Mahindra, and Bajaj, along with AI-led underwriting and IoT-enabled monitoring.

Other loans are described as secured and PSL-aligned lending to MSMEs and SMEs, including term loans and working capital. The company states this portfolio is 100% collateral backed and PSL eligible, positioning it as suitable for co-lending structures.

One point investors should treat carefully is the AUM mix disclosure. One slide states the March 2026 mix as Medicaim 39%, Salary Saathi 2%, EV and solar 30%, and other loans 29%. Another slide shows an inconsistent split between Salary Saathi and EV and solar. Since these are conflicting, the exact segment mix cannot be validated from the presentation alone without clarification.

Financial summary (as presented)

Note: The presentation includes both quarterly and full-year YoY percentages in different tables; this table reflects the values explicitly shown.

Operating leverage: disbursements up, headcount down

A key narrative in the deck is productivity improvement. The company shows quarterly disbursements rising from 322 crore in Q1 FY26 to 700 crore in Q4 FY26. Over the same period, headcount fell from 499 to 420. It highlights a 15.83% reduction in workforce across four quarters while cumulative disbursements increased to 1,768 crore.

The company also states a FY27 headcount target of 300. This is positioned as part of building operating leverage, supported by digital onboarding and embedded distribution models.

Funding strategy: rating upgrade, diversified lenders, and a green bond plan

FY26 funding commentary centers on declining cost of borrowings and an improved credit rating. The company reports quarterly cost of borrowings declining from 13.80% in Q1 FY26 to 12.17% in Q4 FY26, a reduction of 163 basis points. It attributes this trend to a rating upgrade to A- (Stable) by Acuite, PSU co-lending at PSL rates, and broader lender access.

The deck also presents a borrowing mix with total borrowings of 1,397.60 crore and 40 plus lenders, spanning private banks, PSUs, DFIs, NBFCs and others, and NCDs. In addition, it mentions a planned 300 crore green bond in FY27. Management’s stated target is to bring the cost of borrowings to below 10% in FY27.

From a balance sheet perspective, net worth is shown at 574.65 crore as of March 2026, up from 270.25 crore in March 2025. CRAR is reported at 32.37%, providing capital headroom relative to the 15% regulatory minimum. Debt to equity is reported at 2.43 times.

Asset quality: improving NPAs and stage 2 assets

The company reports improving asset quality in the presentation. Gross NPA decreased to 1.94% in Q4 FY26 from 2.50% in Q4 FY25. Net NPA decreased to 1.65% from 2.13% over the same period. Stage 2 assets are shown at 5.90% in Q4 FY26 versus 12.60% in Q4 FY25, indicating a reduction in early stress.

The deck also discloses provision coverage in the mid-30% range, reported at 35.95% in Q4 FY26.

What to watch

The FY26 presentation paints a picture of a rapidly scaling NBFC with a multi-vertical model and improving credit indicators. The strongest evidence-backed positives are the AUM growth, the reported improvement in gross and net NPAs, and the demonstrated trend of lower borrowing costs.

At the same time, investors should note the inconsistency in AUM mix disclosure across slides, which limits independent validation of segment proportions. In addition, while borrowings and AUM have grown rapidly, the presentation does not provide maturity profiles or ALM disclosures that would help evaluate refinancing and duration risk.

Overall, FY26 reflects a year of scale-up supported by diversified funding sources and a push for efficiency. The stated FY27 priorities in the deck are clear: further reduce funding costs to below 10%, execute the planned green bond issuance, accelerate underwriting turnaround time in EV and solar financing, and continue headcount rationalization to improve operating leverage.