Mufin Green Finance reported a strong Q2 FY27, with net profit surging 148.5% YoY to Rs 15.06 crore. The company is successfully pivoting its portfolio toward high-growth digital segments, including Mediclaim and Salary Saathi loans, which now constitute 44% of its AUM, while simultaneously winding down its legacy climate financing business to improve margins.
Mufin Green Finance Q2 Profit Soars 148% on Digital Pivot
Profit After Tax hit Rs 15.06 crore in Q2 FY27, up 148.5% year-on-year.
Gross AUM reached Rs 1,766.07 crore as the company shifts focus to digital lending.
Reader Takeaway: Robust digital lending growth and improved asset quality drive performance; monitor the successful climate portfolio run-down strategy.
What just happened
Mufin Green Finance has released its financial results for the quarter ending September 2026, showing significant momentum in its shift toward digital, high-velocity lending products. Interest income rose to Rs 86.18 crore, a 80.2% increase from the same period last year. The company's Gross NPA improved to 1.77% from 1.91% in the previous quarter, marking five consecutive quarters of asset quality gains.
Why this matters
The company is aggressively moving away from its legacy climate financing portfolio, which is now in a managed run-down phase, with AUM in this segment falling 17.6% quarter-on-quarter. Management is redeploying capital from these mature assets into Mediclaim financing and Salary Saathi loans. These segments now account for 44% of the total AUM, signaling a fundamental change in the firm's operational profile toward a more digitally integrated, retail-focused lender.
Risks to watch
Success now rests on the scalability and asset quality of the newer digital verticals as they expand. Additionally, the company aims to reduce its cost of borrowings from the current 11.96% to below 10.5% by March 2027. Meeting this target is essential to protecting margins during the transition period.
Context metrics
The company currently maintains a capital adequacy ratio of 27.73%, providing a strong cushion for future expansion. Its liability profile is increasingly diversified, with Non-Convertible Debentures (NCDs) now making up 30.9% of total borrowings, supported by a network of over 35 lenders.