Financial Performance Analysis
Mufin Green Finance delivered a strong financial performance in the quarter ended March 31, 2026, with operating revenue rising 30.33% year-on-year to ₹64.67 crore. The bottom line showed exceptional growth, as net profit jumped 207.57% to ₹11.09 crore. This profitability surge is attributed to an improved operating profit margin of 81.91%, driven by the company's transition to higher-yield digital products.
For the full fiscal year, the company recorded an annual net profit of ₹28.26 crore on a total operating revenue of ₹210.29 crore. The Assets Under Management (AUM) expanded to ₹1,541 crore from ₹838 crore in the previous year.
Strategic Pivot to Digital Products
The company is intentionally shifting its focus from traditional EV and solar financing to high-yield technology-based solutions. Insurance premium financing (IPF) now constitutes 39% of the portfolio, processing over 2 lakh policies with a reported delinquency rate of just 0.01%. Another core initiative is the 'Salary Sathi' product, which integrates with government payroll systems in Rajasthan and Assam.
This model allows for EMI deductions directly from the treasury, significantly lowering credit risk. Management indicates that these tech-led segments offer superior Return on Assets (ROA) of 7-8% compared to traditional green financing segments.
Management Outlook and FY27 Guidance
- Targets reaching a total AUM of ₹2,500 crore by the end of the next financial year
- Aims for a profit after tax (PAT) of ₹80-90 crore for FY27, representing a 3x increase from current levels
- Expects to further reduce borrowing costs toward 11% through increased engagement with PSU banks
- Plans to reduce total headcount to approximately 300 employees as automation scales across digital products
- Strategic focus on maintaining low NPAs by prioritizing salary-linked and policy-backed lending
Optimizing Operational Efficiency
We are quite confident that the new products which we had started working on will be delivering a very robust top line and bottom line in our company. Our target for current financial year is that we will be reducing our manpower size to 300 people by end of 2027.
