Mufin Green Finance Q1 Results: Net profit rises 345.6% YoY to ₹14.01 Cr

Mufin Green Finance reported a 345.6% year-on-year increase in net profit after tax (PAT) to ₹14.01 crore for the quarter ended June 30, 2026, signaling robust profitability momentum in its first quarter of FY27. The financial performance was anchored by a 64.3% rise in net interest income (NII) to ₹35.16 crore, supported by disciplined cost management that saw operating expenses decline 17.2% to ₹13.55 crore despite a 61.8% jump in interest income. This divergence between revenue growth and expense contraction highlights significant operating leverage achieved through the company’s digital-first, branch-light model.

The filing, submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, discloses that profit before tax (PBT) surged 345.6% to ₹18.82 crore from ₹4.22 crore in Q1FY26. Pre-provisioning operating profit (PPOP) more than doubled to ₹62.98 crore, up 102.3% year-on-year. While provisions and write-offs increased 167.6% to ₹2.89 crore, they remained manageable relative to the top-line expansion, allowing bottom-line metrics to expand sharply. The company’s capital adequacy ratio (CRAR) stood at a robust 30.55%, providing a strong buffer against credit risks.

Portfolio Expansion and Asset Quality

Total assets under management (AUM) reached ₹1,599.23 crore as of June 2026, reflecting a 69.4% growth from ₹944 crore in Q1FY26. Disbursements in Q1FY27 totaled ₹449.40 crore, up 37.3% year-on-year. Gross non-performing assets (GNPA) remained stable at 1.91%, indicating that rapid scale-up has not compromised asset quality. The portfolio is diversified across four verticals, with Mediclaim Financing contributing 42% of AUM, followed by MSME & Corporate loans at 29%, Climate Financing at 26%, and Salary Saathi at 3%.

Vertical	AUM Share	Key Metric
Mediclaim Financing	42%	₹676.61 Cr AUM; +56.2% YoY disbursement
MSME & Corporate	29%	₹458.84 Cr AUM; 100% collateral-backed
Climate Financing	26%	₹410.83 Cr AUM; IoT-backed monitoring
Salary Saathi	3%	₹52.97 Cr AUM; Near-zero default risk

Mediclaim Financing emerged as the primary growth driver, with disbursements rising 56.2% to ₹247.08 crore and loan counts increasing 48.4% to 48,214. June 2026 alone saw a 74.6% year-on-year jump in loan counts, reflecting accelerating point-of-sale adoption. Meanwhile, the Salary Saathi vertical, secured through salary deduction-at-source MoUs with state governments, grew 38.4% quarter-on-quarter to ₹38.20 crore, driven largely by expansion into Assam.

Funding Strategy and Operational Efficiency

The company strengthened its funding base by onboarding Union Bank and Wint Wealth in June 2026, securing a ₹25.00 crore term loan and a ₹100.00 crore NCD facility. Total borrowings stood at ₹1,550.99 crore across 35+ lenders, with the cost of borrowings declining to 11.17% in Q1FY27 from 12.17% in Q4FY26. This reduction in funding costs directly contributed to margin expansion. The borrowing mix shifted towards Non-Convertible Debentures (NCDs), which now constitute 24% of total borrowings, up from 16% in March 2025.

Operational efficiency gains were evident in headcount optimization. Cumulative disbursements grew 6.9x to ₹2,217 crore since Q1FY26, while headcount fell 26.45% from 499 to 367 employees. This resulted in disbursement per employee rising to ₹6.04 crore, underscoring the scalability of its tech-led infrastructure. Credit ratings remain positive, with Acuité maintaining an A- (Stable) rating and CRISIL assigning an A+ (SO) rating to its securitized pools.

What the Numbers Show

The most striking analytical observation is the decoupling of revenue growth from operational costs. While interest income jumped 61.8%, operating expenses contracted 17.2%. This suggests that Mufin Green Finance is successfully leveraging fixed-cost digital platforms to absorb volume growth without proportional increases in staffing or overheads. Furthermore, the decline in cost of borrowings (from 12.17% to 11.17%) combined with stable GNPA levels indicates that the company is not merely growing volume but improving unit economics. The heavy reliance on Mediclaim financing (42% of AUM) presents a concentration risk, but the low Loss Given Default (LGD) of 1% ± 0.25% assigned by CRISIL mitigates this concern, validating the asset quality of this high-growth segment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.31%	+2.16%	+4.42%	+15.35%	+53.15%	+1.10%

Mufin Green Finance reported a sharp acceleration in profitability for the first quarter of FY26, with standalone net profit after tax (PAT) rising 241% year-on-year to ₹1,401.12 lakh. The growth was primarily driven by a 61% increase in interest income, which reached ₹7,644.06 lakh, reflecting expanded lending activity. Total revenue from operations climbed 60% to ₹7,686.19 lakh, while total expenses increased by 37% to ₹5,832.47 lakh, indicating improved operating leverage.

The Board of Directors approved the unaudited financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Gaur & Associates conducted a limited review of the interim financial information in accordance with Standard on Review Engagement (SRE) 2410. The results were prepared in compliance with Ind AS 34 and Section 133 of the Companies Act, 2013.

Financial Performance Highlights

The company's earnings per share (EPS) increased to ₹0.71 from ₹0.25 in the corresponding quarter of the previous year. The net profit margin expanded significantly to 18.16%, up from 8.54% in Q1 FY25. This margin improvement was aided by a lower effective tax rate due to deferred tax benefits, despite current tax expenses remaining relatively stable.

Metric:	Q1 FY26 (₹ lakh)	Q1 FY25 (₹ lakh)	YoY Change
Interest Income:	7,644.06	4,743.42	+61%
Total Revenue:	7,686.19	4,801.71	+60%
Total Expenses:	5,832.47	4,263.21	+37%
Net Profit After Tax:	1,401.12	410.99	+241%
EPS (Basic):	₹0.71	₹0.25	+184%

Asset quality remained stable, with the gross non-performing asset (NPA) ratio holding at 1.91%, compared to 2.37% in the same quarter last year. The net NPA ratio stood at 1.63%. The capital adequacy ratio decreased slightly to 30.55% from 31.57% in Q1 FY25, while the debt-equity ratio increased to 2.65 times from 2.46 times.

Debt Compliance and Fund Utilization

Mufin Green Finance confirmed full compliance with all covenants associated with its listed non-convertible debentures (NCDs). As of June 30, 2026, the outstanding balance of secured NCDs was ₹4,871.36 lakh, including accrued interest. The security cover for these instruments remains within the required range of 1–1.15 times, backed by specific book debts.

During the quarter, the company raised ₹119 crore through private placement of NCDs. This included ₹100 crore issued on June 9, 2026, and ₹19 crore issued on June 15, 2026. The company disclosed that there was no deviation in the utilization of these proceeds, which are earmarked for onward lending purposes. No funds were utilized during the quarter, as per the regulatory filing under Regulation 52(7).

What the Numbers Show

The divergence between revenue growth (60%) and expense growth (37%) highlights a period of strong operational efficiency. While finance costs rose by 62% to ₹412.79 lakh, the faster growth in interest income allowed the profit before tax to more than triple year-on-year. This suggests that the company's new lending initiatives are generating yields that outpace the cost of funds, improving the net interest margin dynamics even as the overall debt burden increases.