Mufin Green — Q4 FY26 earnings call

Call held 28 May 2026

Management summary

Mufin Green Finance reported a strong Q4 and FY26, driven by robust AUM growth of 83.8% YoY and a significant 207.7% YoY increase in Q4 PBT. The company successfully diversified its product portfolio with the launch of high-margin, tech-oriented offerings like Mediclaim Insurance Premium Financing, which now constitutes 39% of its AUM with near-zero NPAs. Asset quality improved with Gross NPA falling to 1.94%, and the cost of borrowing decreased by 163 bps, positioning the company for continued profitable growth and a targeted three-fold jump in PAT for FY27.

Highlights

  • Strong AUM growth of 83.8% YoY to ₹1,541.17 crore in March 2026, demonstrating robust business expansion.

  • Significant PBT growth of 207.7% YoY in Q4 FY26 to ₹14.83 crore, indicating enhanced profitability.

  • Successful launch and scaling of new high-profitability products like Mediclaim Insurance Premium Financing, which now constitutes 39% of AUM with 7-8% ROA and near-zero NPA.

  • Improved asset quality with Gross NPA reducing to 1.94% in Q4 FY26 from 2.50% in Q4 FY25.

  • Reduced cost of borrowing by 163 bps to 12.17% in Q4 FY26, with further reduction expected below 10% in FY27 due to rating upgrades and diversified funding.

Key financials

3 periods

Headline

  • AUM
    ₹1,541.17 Cr
    YoY +83.8% QoQ +33.3%
  • Gross NPA
    1.9%
    QoQ -13.4%
  • Cost of Borrowing
    12.2%
    QoQ -6.2%

Q4

  • Disbursements
    ₹699.91 Cr
    YoY +163.7% QoQ +80.8%
  • PBT
    ₹14.83 Cr
    YoY +207.7%

FY26

  • PAT
    ₹28.21 Cr

What they filed

Q1 FY27: revenue up 57.1%, net profit up 366.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue46 49 50 49 53 +15%53 +8%65 +30%77 +57%
EBITDA31 32 28 30 35 +11%— — —
Net profit6 6 3 3 6 +0%7 +17%11 +267%14 +367%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentShare of AUMAUMROA
Mediclaim Financing39%₹607.88 Cr7%
Salary Saathi2%₹26.4 Cr4%
EV and Solar Financing30%₹459 Cr2%
Other Loans29%——

Capital allocation

high confidence
  • Debt Gross ₹1,397.6 Cr Cost 12.2%
    Our borrowing profile is well-diversified across ₹1,397.60 crore of total borrowings from 40-plus lenders. ...it has now come down to 12.17% in Q4 FY2025-26 a reduction of 163 basis points during the year.
  • Liquidity Liquidity disclosed Approximately ₹300 crore of equity capital raised in FY2025-26 with strong investor participation.
    In FY2025-26, we successfully raised approximately 300 crore of equity capital with strong investor participation.

Guidance & targets

AUM

  • Total AUM AUM · FY2026-27 · High confidence ₹2,500 crore
    our minimum target for FY2026-27 is approximately ₹2,500 crore of AUM

    — Kapil Garg

Profitability

  • PAT Profitability · FY2026-27 · High confidence ₹80 to 90 crores
    and ₹80 to 90 crores of profitability at the PAT level.

    — Kapil Garg

  • PAT Profitability · next three to four years · High confidence ₹500 crore-plus
    the target over the next three to four years is to reach a profitability of ₹500 crore-plus.

    — Kapil Garg

  • ROA Profitability · medium term · Medium confidence 10 to 11%
    We are on a path toward 10 to 11% ROA over the medium term.

    — Kapil Garg

Headcount

  • Total Employees Headcount · FY2026-27 · High confidence approximately 300 people
    Our target for FY2026-27 is to reduce headcount to approximately 300 people.

    — Kapil Garg

Cost of Funds

  • Average Cost of Borrowing Cost of Funds · FY2026-27 · High confidence below 10%
    our average cost of borrowing will further reduce to below 10% in FY2026-27 as the rating benefits fully flow through.

    — Kapil Garg

AUM Composition

  • Mediclaim Insurance Premium Financing AUM AUM Composition · FY2026-27 · High confidence ₹1,000 crore
    we are targeting ₹1,000 crore in that segment alone in FY2026-27

    — Kapil Garg

  • Mediclaim Insurance Premium Financing Share of AUM AUM Composition · FY2026-27 · High confidence 50 to 60%
    we are targeting approximately 50 to 60% of our total AUM to be in Mediclaim Insurance Premium Financing.

    — Kapil Garg

Asset Quality

  • Gross NPA Asset Quality · FY2026-27 · High confidence below 1.5%
    As a result, Gross NPA will reduce further to below 1.5% in FY2026-27.

    — Gunjan Jain

Portfolio Mix

  • Digital Financing Portfolio Share Portfolio Mix · FY2026-27 · High confidence 60 to 70%
    For FY2026-27, our main target is digital financing we are seeking 60 to 70% of our portfolio to be in this space.

    — Gunjan Jain

Disbursements

  • Mediclaim Disbursements Disbursements · FY2026-27 · High confidence ₹1,500 crore
    In FY2026-27, we ourselves are targeting ₹1,500 crore of disbursements in this segment alone

    — Kapil Garg

What to watch in Q1 FY27

AUM Growth

FY2026-27
Current ₹1,541.17 crore (Q4 FY26)
Target ₹2,500 crore

Why it matters

Verifying the achievement of the targeted AUM growth is crucial for assessing the company's overall business expansion and market penetration.

our minimum target for FY2026-27 is approximately ₹2,500 crore of AUM

Q&A highlights

6 direct
AUM Growth and Profitability Targets for FY27 Direct
our minimum target for FY2026-27 is approximately ₹2,500 crore of AUM and ₹80 to 90 crores of profitability at the PAT level. We are forecasting almost a three-times jump in bottom line in FY2026-27

Analyst sought specific forward guidance on key financial metrics, and management provided clear, ambitious targets for AUM and PAT, indicating strong future growth.

Asked by Deepak

Strategic Focus on High-Yielding Segments (Mediclaim & Salary Saathi) Direct
Naturally, we will direct more resources toward the products that generate the highest profitability. In FY2026-27, we are targeting approximately 50 to 60% of our total AUM to be in Mediclaim Insurance Premium Financing.

Analyst inquired about the strategic allocation of resources, and management confirmed a clear pivot towards higher-ROA digital products, which will significantly impact overall profitability.

Asked by Deepak

Targeted GNPA and Credit Cost Levels for FY27 Direct
For FY2026-27, our main target is digital financing we are seeking 60 to 70% of our portfolio to be in this space. As a result, Gross NPA will reduce further to below 1.5% in FY2026-27. Credit costs will reduce accordingly.

Analyst sought specific asset quality targets, and management provided a clear GNPA target linked to the strategic shift towards digital financing, which is crucial for risk management.

Asked by Deepak

Competition in Mediclaim Financing Direct
More competition would actually be welcome. In financial markets, you cannot sit on a monopoly product. ... Even with 100 players in this ecosystem, there is more than enough opportunity for everyone.

Analyst probed a potential competitive threat in a key growth segment, and management articulated a confident stance, emphasizing market size and existing integrations as competitive advantages.

Asked by Deepak

Long-term Vision for the Company (FY29-30 and beyond) Direct
In terms of our long-term vision, the target over the next three to four years is to reach a profitability of ₹500 crore-plus. ... Profitability is what matters most.

Analyst asked for the company's long-term strategic direction, and management provided an ambitious PAT target, highlighting a focus on profitability over just AUM growth.

Asked by Deepak

Profitability Outlook for the next two to three years Direct
for FY2026-27 we are targeting approximately 300% growth in our profitability. Our full year PAT for FY2025-26 was ₹28.21 crore, and we are targeting a PAT of ₹80 to 90 crore in FY2026-27. ... Over the next three to four years, our target is to reach a minimum of ₹500 crore in PAT.

Analyst sought clarity on the medium-term profitability trajectory, and management reiterated and reinforced the aggressive PAT growth targets for both the next fiscal year and the longer term.

Asked by Vedant

2 min read 5 chapters

Detailed narrative

Strategic Shift to Tech-Oriented and High-Margin Products

Mufin Green Finance has successfully pivoted towards tech-based products, with Mediclaim Insurance Premium Financing and Government Salary-Backed Lending showing significant traction. Mediclaim Financing alone contributed ₹607.88 crore, representing 39% of the total AUM in FY26, boasting an impressive ROA of 7-8% and near-zero NPA. The company plans to direct more resources towards these high-profitability segments, targeting 50-60% of its total AUM to be in Mediclaim Financing by FY27, which is expected to drive overall ROA to 10-11% in the medium term.

Robust Financial Performance and Ambitious Growth Targets

The company reported a strong 83.8% YoY AUM growth, reaching ₹1,541.17 crore in March 2026, and a 163.7% YoY increase in Q4 FY26 disbursements to ₹699.91 crore. PBT for Q4 FY26 surged by 207.7% YoY to ₹14.83 crore, with full-year PAT reaching ₹28.21 crore. For FY27, management has set ambitious targets of approximately ₹2,500 crore in AUM and ₹80-90 crore in PAT, forecasting almost a three-times jump in bottom line, with a long-term vision of achieving ₹500 crore-plus PAT in 3-4 years.

Improving Asset Quality and Enhanced Cost Efficiency

Asset quality saw significant improvement, with Gross NPA reducing from 2.50% in Q4 FY25 to 1.94% in Q4 FY26, and Net NPA at 1.65%. Stage 2 assets also decreased substantially to 5.90% in Q4 FY26. Concurrently, the cost of borrowing reduced by 163 basis points during FY26 to 12.17% in Q4 FY26. The company aims to further reduce its cost of borrowing below 10% in FY27, leveraging its upgraded 'A-' rating and increased access to DFI and PSU bank funding.

Strong Capital Adequacy and Diversified Funding

Mufin Green Finance successfully raised approximately ₹300 crore in equity capital in FY26, bolstering its net worth to ₹574.65 crore and maintaining a robust CRAR of 32.37%, well above the RBI regulatory minimum of 15%. The company's borrowing profile is well-diversified across ₹1,397.60 crore from over 40 lenders, with DFIs contributing 36.68% and PSU banks 14.60%. This diversification and strong capital base support future growth without immediate equity dilution.

Operational Streamlining and Future Strategic Focus

The company is committed to operational efficiency, systematically reducing its headcount from 499 in Q1 FY26 to 420 in Q4 FY26, with a target of approximately 300 by FY27. This lean operating model is expected to enhance profitability. The long-term strategy emphasizes strengthening the capital base and utilizing PTC and DA transactions to improve profitability, rather than relying solely on AUM growth, ensuring sustainable and profitable expansion.

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