Mufin Green Finance pivots to digital lending to triple FY27 profits
The lender is shifting away from capital-intensive EV and solar financing to target ₹80-90 crore in net profit by FY27.
— 2 earlier stories on Mufin Green Finance Ltd. →What's new
- Management targets FY27 net profit of ₹80-90 crore.
- Insurance premium financing now makes up 39% of the portfolio.
- The company is moving away from capital-heavy EV and solar financing.
Why this matters
Mufin is betting its valuation on a transition from asset-heavy lending to high-margin digital products. The strategy hinges on the success of its insurance premium and salary-linked lending segments, which currently offer superior returns on assets compared to its legacy business.
What we're watching
- The ability to maintain 8-9% return on assets as the portfolio scales.
- Actual headcount reduction progress alongside digital expansion.
- The timeline for reaching the ₹500 crore long-term profit goal.
The full read
Mufin Green Finance is abandoning its legacy EV and solar financing business. It is refocusing the lender on high-margin digital products, specifically insurance premium financing and its 'Salary Saathi' government employee lending program.
This is a radical pivot.
The insurance segment already represents 39% of the portfolio and generates a return on assets of 8-9%. By shifting to these tech-driven models, the company targets a 300% jump in net profit to ₹80-90 crore by FY27. The long-term ambition is even higher, with management aiming for ₹500 crore in annual profit within the next three to four years. This transition is designed to lower borrowing costs through credit rating upgrades while simultaneously reducing headcount to improve operating margins. The shift is a clear attempt to improve valuation by moving toward a leaner, higher-margin operating model that relies on digital distribution rather than capital-heavy asset acquisition.
Questions answered
- What is the core of Mufin's new strategy?
- The company is pivoting toward high-margin digital products, specifically insurance premium financing and government employee salary loans. It is simultaneously reducing its exposure to capital-intensive sectors like EV and solar financing.
- How profitable is the insurance premium financing segment?
- This segment currently accounts for 39% of the total portfolio. It delivers a return on assets of 8-9% and has negligible default rates.
- What are the company's specific profit targets?
- Management is targeting ₹80-90 crore in net profit for FY27, representing a 300% increase. Longer-term, it aims for ₹500 crore in annual profit within three to four years.
- How does the company plan to lower its borrowing costs?
- The company expects lower borrowing costs to follow recent credit rating upgrades. These lower costs are a key component of its plan to reach its long-term profit milestones.
Story so far
All notes on MUFIN →- 28 May 2026 · 4:46 PM IST Mufin Green Finance pivots to digital lending to triple FY27 profits
- 7d ago Mufin Green Finance AUM surges 84% to ₹1,541 cr, profit jumps 39% in FY26
- 7d ago Mufin Green Finance posts 39% profit jump in FY26 as Q4 accelerates, NPAs shrink