Mufin Green Finance Limited (MUFIN) Q4 2026 Earnings Call Transcript

Good evening, everyone. Thank you for standing by. Welcome to Q4 FY26 Earning Conference Call of Miffing Green Finance Ltd. As a reminder, all participants are requested to mute themselves. There will be an opportunity to ask questions after the presentation. I now hand over the conference to Mr. Vishwas Kumar, Investor Relations Manager, to moderate today's call.

Thank you, sir. Good evening, everyone. A very warm welcome to quarter 4 FY26, earning conference call of Muffin Green Finance Limited. My name is Vishwas Kumar, Manager of Invest Relations, and I will be the moderator of today's call. On today's call, we have with us from the Senior Management Team, Mr. Kapil Garg, sir, our Co-Founder and Managing Director. Mrs. Gunjan Jain, our CFO of Muffin Green Finance Ltd., and Mr. Mayank Pratap Singh, our Compliance Officer. Before we begin, I would like to draw your attention towards the safe harbor statements. Certain statements made during this call may be a forward-looking in nature. I request you to kindly refer the detailed disclaimer in our investor presentation, which has been filed on VSC and NSC. And it's also available on our website, that is www.muffingreenfinance.com. The financial results for quarter 4 and FY26 were approved by our board of directors at its meeting held on 21st of May and already have been uploaded on the exchanges. These results are subjected to the final audit. With that, I now invite Mr. Kapilgar sir to share his opening remarks. Over to you sir.

Thanks everyone for joining this call and another thing is that thanks for trusting in us and our company. So when we talk about Brooklyn Green... In part, we were demarketed by climate financing only. We were a pioneer in the industry in terms of electric and solar, but since the last few years, we were building around a few tech-based products which had gone live in last year and which has started showing numbers in our company. So, we will talk much more about the products, the profitability, the future vision of the company, and the way we are driving the company, we are quite confident that the new products which we had started working on will be doing a very robust top line and bottom line in our company. So, when we talk about March 2026, we closed at an EVM of 1541 crore rupees, comparing with last year, 838 crore rupees, which in itself, year-over-year, is 83.8% as a growth. Disbursements increased multifold. In last year, we dispersed, if you talk about year-over-year, the growth is 163.7%. But the profits, if you see the bottom lines, are growing multifold from this quarter itself. And this type of growth you will see in coming quarters also. Since what we have done as a strategy, as a board permission, as part of corporate governance that we pivoted few new products which are delivering a very robust profit line in our company. So, if you talk about quarter for profit, PVT in comparing quarter was 4 crore rupees, but in this quarter we deliver PVT of 14.8c crore rupees, which in itself is a 200% growth in terms of profit. Similar type of profits we are targeting in future, even much better, much ahead than these profits, since what we had done in the last quarter, that we had pivoted towards new tech-based products, which we were building since last three years, which had gone live in last year only. So, for example, first product which we had gone live is the next product. Insurance premium financing. This is a very innovative product. We are cornering this particular product. In last year, if we talk about 1500 rupees of AUM, which we have closed, 600 was medical insurance premium financing. This product is a very tech-oriented product. As such, there were no manpower or no branch offices are required, and the entire portfolio is almost negligible NPA. If we talk about 607% of our portfolio, our NPA is just 0.01% with the thin team size of very few people. So in this particular product, we came with a very innovative solution, tech-based solution, where we got integration done with the insurance companies and providing unique solutions of medical insurance premium financing. Which is a need of a society, which is a need of a country. We see overseas, this is a very relevant product, carrying multiple banks and NBFCs worldwide. But in India, as such, this product was not started in a very relevant way. So what we had done that we had already got integration done with more than nine insurance companies that include SJFC, Ergo, Star, Universal Sompo, Magma, Kair, and multiple others. Now anyone can convert his upside premium into the EMI solution. And this product seemed like anything in last year itself. We are earning an ROI of more than 8 to 9% in this particular product. And in current financial year, 31st March 2027, we are riding huge on this particular new pivoted product, where our bottom line will get further, more standards because of this particular product. We have just done our Cricill pool rating on the basis of this product. We got first rating as A plus from Cricill on this particular product. This in itself shows what type of portfolio we are building in this particular product. What we are doing that we are integrating on a checkup point of our insurance company page, where any agent can convert their customer upside premium into the EMI. Secondly, this is the highest return on assets. ROA is, as I told you, is more than 8%. And there are multiple protections, so where we are... We are sitting on a very negligible NPAs with the lowest team, with the lowest operation cost, with the lowest credit cost. And nothing can be more than that, that we last financial year, we financed more than two to three lakh policies alone through this product. And the way we are strongly building this product, our top line and bottom line will, in the coming quarter also, you will see a relevant impact of this new product entrance into the ecosystem. Another product which we had started is also a very innovative solution. What we had done is that we had got our integration done with two state governments, that is Rajasthan and Assam. Now, we had got integration with the salary software, HRMS software of the government. So, when we talk about Rajasthan government, we had got our integration done with the Rajasthan state government. Now, any employee, 18 lakh employee of Rajasthan, either it can be Jal Ligam or PWD or Hussar is a government employee, on a single click can take a loan from us. But the best part is that we had signed an agreement with the Rajasthan state government that EMI will not be taking from the employee. EMI will be taking from the treasury itself before the salary will be credited to the employee. So, in this particular product also, we are getting very large fraction. And the way we are speaking to other states, for example, our discussions are ongoing with Maharashtra, Chhattisgarh, Meghalaya, and Goa. So in this particular product, we are getting our reachability to lakhs of government employees, and we are sitting on top of a waterfall where… The EMI of salary will be deducted at the first place on the top of the waterfall. So, chances of delinquency is quite minimal. And also, government traction. In government employees, movement from one department to another or leaving the job is very minimal. So, that's why this portfolio also, what we are building, is getting a lot of traction, a lot of visibility. Our company vision was three major things. It should be tech-based, it should be scale-able, it should be secure. Since the last three years, we are trying to achieve these three pillars, and now I'm confident and very, I'm telling to you that we have succeeded in achieving these three targets what we had vision three years back. First one is insurance premium financing, and then second is salary sati. We had up and live in two states, that is Aisthan and Assam. So, average ticket size over here is 4 lakh, tenure is maximum 5 years, yield is 12 to 20, but here also, this is more a tech-based solution where manpower or a branch office or operational cost or credit costs are negligible, and back by state government MOU, where salary deduction or EMI deduction from a salary employee is a responsibility to the government, and they provide us our EMI directly from a president. Now, our flagship product, AVM Solar, we are pointing out this product, and currently, we are sitting on an AVM of approximately 400 crore in this particular product. So, in EV and Solar, we are one of the leading companies in the country, and if you talk about any fund in the world, they are backing us in our within-grade journey. For example, in last quarter itself, we got a sanction from FinFund, which is a Finland-based DFI. Other than that, in last financial year, we got multiple sanctions from multiple DFI that include US Development Finance Corporation, Symbiotics, Blue Orchid, and multiple others, Which in itself shows the quality of portfolio that we are building and dedication of the team to building the strong climate financing solutions in our company. So, there are four types of products that we are presently doing. First is medical insurance premium financing, which carries 39% of the portfolio. Thereafter, salary, which is currently a magnitude number, but it will scale up like a multifold in this current financial year. There are third number is solar and electric, which is 30%. But other than this, there are few NBFCs lending, which we have done, carries a small portion of our portfolio. So, but in terms of growth, if you see the moving journey, if you see the continuously growth. We are growing quarter on quarter, and the profitability and disbursement are growing quarter on quarter. In quarter four, we had done a disbursement of 700 crore rupees, which in itself is the highest number that we achieved in our European Union journey. And we had reached a solid portfolio of more than 1,500 crore in this particular financial year. We talk about last financial year, collectively we dispersed more than 1,800 crores. But similarly, what we had communicated to you that our company will be more of a tech-based solution company. So that's why dependence on manpower we are continuously reducing. If you talk about quarter 1 of last year, our manpower strength was 499. In quarter 2, it came down to 454. In quarter 3, it came down to 426. In quarter 4, it came down to 420. Despite of the fact that AUM is increasing, disbursements are increasing, profitability are increasing. But the manpower, which is a pillar of any company, the employee cost is decreasing. So our target for current financial year is that we will be reducing our manpower size to 300 people by end of 2027. Since all the products are communicated to you, it will be more of a tech-based solution, but in a secure way where we don't want to carry larger risk on unsecured side of the products. So, even if we talk about today's scenario, today, our 40% of our team is field operation, which is more on the EV side, and the way we are getting much better ROI in our other tech-based products, and we had put our resources more on a tech-based solution product, slowly and steadily, EV portfolio is reducing, and that's why the field team, which is currently part of the company, will also lead certain stabilization, The manpower strength, what we are forecasting by end of this year will be approximately 300 people, and this will directly impact three things. First thing, profitability. Second thing, headcount. And obviously, that will improve our operational in much larger way, improving the ROA because of tech-based products. And thereafter, building any organization is a journey. So as a part of a journey, we are thankful to everyone for participation in this journey. If we talk about starting of this quarter, our average borrowing was at a rate of 13 by 10.0%. By end of second quarter, it was 12.79%. By end of quarter three, it was 12.97%. But now, it has came down to 12.17%. Because this will directly impact our bottom line. And the way in which the now PSU banks have started lending to us, before we had been upgraded by rating NC to A- and most of the PSU banks had got a criteria of not to lend any investment with rating company. That's why the last sanction what we had got is at 9.50%. So we are quite hopeful that in this current financial year, this 12.7% will further get reduced to 11% in this current financial year. So, borrowing mix, now we have a bankable, we have a banking relationship with almost all the relevant agencies, include DFIs, almost all the DFIs worldwide. So, if you see the borrowing profile, our largest set of borrowing is from DFIs, that is Symbiotics, we would say DWM, FinFund, Incofinance, Shell Foundation. The second largest is the NCDs we had raised in last quarter itself. Then third is the PSU banks and fourth is private banks. But this combination will change in current financial year. We will be more taking money from the PSU banks where we will be getting borrowing somewhat at a rising of 10% in comparison to what we are taking in last financial year at 12 to 13. So, this is a journey. As I told you, in financial year 2023, we got our first rate in BBB, then BBB-, then BBB+. In the last financial year, we had been upgraded to A-. And we are quite hopeful, confident that in current financial year, the way we are building strong numbers, the way we are building strong profitability, the way we are building and reducing the delinquencies, we will be further upgraded to more stronger candidates from the agencies. So, currently, if you talk about gross NPAs, gross NPAs from 2.24 or even 2.5, it got reduced to 1.94%. Net NPA reduced from 2.13 to 1.65%. Provision coverage had reduced from 36.25, 1.05, 37.46 to 35.95%. Stage 2 asset, you will see a lot of improvement because the new portfolio that we are building. is in bucket one only. So it had reduced from 12.60% to 5.90% in current financial year. It will get further reduced to the range of approximately 4. This is a p-handle summary for quarter on quarter and year on year. So if you see the numbers, the numbers itself prove that the way we are building company, now the company has got at a stage where you will see a lot of traction in terms of profitability, in terms of cleanup portfolio, in terms of revenue growth, in terms of AU growth. Secondly, whenever capital is required, there is a lot of willingness of investors to invest in our company in a time when the world was struggling geopolitical nuisances. At that point of time, we raised a strong capital of approximately 300 countries in the company, and that included in that particular round, almost all the larger funds had participated, and even the willingness for the participation was much larger than needed in the company. If you talk about net worth, it increased from 270 crore to 574 crore rupees in this financial year. Total asset, if you talk about total asset, it will increase from 1000 crore to 200 crore rupees. Total borrowing has increased from 700 crore to 1400 crore rupees. Loan book increased from 838 crore rupees, 1500 and 41 crore rupees. If you talk about debt equity ratio, we are improving in terms of RBA guideline, in terms of financial guidelines. Now we are sitting at relevant, strong ratios, and in the future, these ratios will keep on improving the way we are building the portfolios, in the way innovative solutions and products we are going like.

Thank you. We can now take questions if anyone has them. If you have any questions, you can now raise your hand and unmute.

Thanks, Deepakji. Deepakji is also in, I think, and even Darsil, you raise your hand, you can ask the question.

Hello. Yeah. Good evening, sir. Thank you so much for letting me get the question. Firstly, congratulations on our great support of Vietnam. Sir, so going forward, like what kind of A1 growth that, you know, you invest out because here we are probably also maybe moving around 50%. So what kind of growth targets do you have, sir?

So, growth, the way we have entered into new product range, the way we are borrowing at a lower cost, the way our teams are getting special, the way portfolios' dependencies are improving, so minimum target for the next financial year will be somewhere around 2,500 crore rupees of a year, and 80 to 90 crore rupees of profitability, what we are forecasting, which will be almost three-time jump in bottom nine in third financial year. This is on the basis of the product that we have built, the way traction is coming month-on-month basis.

Sorry, sorry, sir. In terms of profitability, what did you say? 80 crore.

On a minimum basis, 80 to 80 crore, please.

Okay, okay, okay. That's really grateful, sir. So, sir, going forward, like, our focus will be more on MediClaim financing and everything because that's such a lucrative ROL. I don't think anyone else is doing this. So, what is our vision for that part? Like, even the salary, it's a very good yield, and it's nearly zero. So, what is our plan for that? Like, those two will be the higher yielding segments, right?

Likewise, in this current financial year, our largest portfolio now has become the initial in-frame financing. In initial in-frame financing, there are five modes. First, customer acquisition cost is zero, right? Thereafter, second, delicacies are zero. Thereafter, transit costs are negligible, operational costs are negligible, and fees are almost nil. So, this is a very innovative product in which we go live and carrying a relevant market share of the entire industry. So, if you compare the ROA, as a promoter, as a board member, I am more focused on getting more robust profitability Rather than reaching a larger revenue or a larger area of percentage. So what will be our focus will be to generate more. Bottom line income rather than focusing more on an EVM growth. So, if you talk about ROA or percentage on product to product, if you split product on product ROA, in electric and solar, we were getting a ROA of 2 to 2.5%. Right? In salary sati, we are getting a ROA of 4 to 5%. In insurance premium financing, we are getting a RA of more than 7% to 8%. So, obviously, we will put more of our resources on the product, which will be generating the largest profitability in our company. So, if we talk about future in this current financial year, 2027, we are targeting almost 50% to 60% of our EVM will be insurance premium financing.

That's really great. So that way, our current ROA is what and doesn't jump a lot, right, because 60-60% is…

So, if you…the numbers are starting showing in P&L itself, for example, reaching a pack of 3.810 to 11, and then if you talk about next year, 90 crore profitability, what we are targeting, We are targeting from 28 crore rupees, which in itself is a three-time jump profit in a single year, which in itself is a very relevant growth for any company in case you compare with any company in the country on a listed or unlisted domain. Getting a profitability, 300% jump in the profitability, what we are targeting on a conservative side. And that's why if last year AUM was 600 crore rupees for insurance premium financing, current financial year, we are targeting 1000 crore rupees per portfolio in insurance premium financing alone, which will itself will be Collectively will be 50 to 60% of our AUM. And that will straightforwardly impact our bottom lines, our valuations, and obviously the growth of the company.

That's really great to hear, sir. And this last question from my end, so what do we look at, you know, our credit cost provisioning, what do we feel our GNPA credit cost can be, sir?

Bunyan, uh, uh, Can you please repeat, I'm not able to bring your property.

Yeah, I was asking, what is our targeted DNPA and credit costs?

As you have seen that we have pivoted our portfolio entirely from EV segment to medical and premium financing. And we have reduction in gross NPO from 2.3% to 1.9%. So next financial year, as Kapil sir has said, our main target will be digital financing, where we are seeking 60-70% of our portfolio to win this pace. So it will reduce further. It will reduce to less than 1.5%. And based upon that, our credit costs will also reduce. So right now also, we are creating the provision over and above the RBI norms as per the ECL. And we'll do accordingly. On the AEM, total AEM, our credit cost is 1%.

Okay, okay. As you're in terms of competition, who do we have? Like, I'm just asking, like, because we are such a, this is such a lucrative field. So do you feel more players will come in, like more fintechs will come in, maybe insurance premium people might also come in. What do you feel, sir? How do you look at the competition?

This will be very good for us since in finance market, you can't sit on a monopoly product and general insurance market currently is more than 3 lakh crore rupees of market. We had just built a portfolio of 600 crore rupees and the way it is growing at a pace of more than 15% CAGR growth. So this 3 lakh will become obviously 5 lakh crore rupees of market in the next couple of years. So, presently, it will be very good if the new companies and new entrants enter into this ecosystem. This will further give business to companies like us, who had already caught footprints in almost all the insurance companies. So, maybe EVM growth will happen multifold, but yes, other people are welcoming this product. We will further strengthening of this product for more penetration in the country. One more thing, if you talk about this year, I'm talking about just 1,000 to 1,500 kW of disbursement, as per my appetite, but the industry is so huge that even if 100 places came into this ecosystem, that will be, that they all will get their pie in this ecosystem.

Okay, great, great. At the long term, what is our vision? Like maybe if we have a plan, like we can accelerate this growth because the way you are going, I don't see any problem, you know, going multiple times in that kind of thing.

So, basically, the essence of any NBFC or a financial institution is continuously capital strengthening in case we are getting relevant bottom lines that will help us in further leverage. For example, this year end, if we get a profit of 100 crore rupees, that will further strengthen our capital base from 600 crore to 700 crore rupees. That will help you in getting more debt. So, what is our thought is that rather than diluting more, in current financial year, we will be doing PTC and DA transactions, so that we further improve our bottom line, but will not lead us to or make us in a position where we raise another round of capital and dilute ourselves. So, now we want to protect our equity to the point where it is not necessary. So, the target given by the board is that in the financial year, we will build a portfolio, we will do more of PTC, we will do more of a DA. That will reduce our borrowing, that will reduce our EM, but that will straight forward increase our profitability. And that profitability will further help us in raising more debt from the institutions. So, in terms of growth, in terms of future two to three years, the target is to reach a profitability of 500 gold profits plus. Rather than, we talk about reaching an AUM of 10,000 crore rupees. I always speak of reaching a profitability of 500 crore rupees. That is more important for me rather than reaching a 10,000 crore rupees and sitting on just 100 or 150 crore rupees of profit.

Oh, that's a very big vision. So this 500, the plan will be in how many years?

On an open forum, we can...

A couple of things. Sir, for more...

It is also okay. I don't get to say my examples.

I expect the projections given to our investors, we are targeting in the next three to four years, we will be reaching that number, surely. Okay. The way we are building the portfolios.

That's a really strong vision, sir. All the best, sir, and lovely talking to you.

Thank you.

Thank you.

So, we have a couple of more questions. Vidankji raised his hand. Sir, are you online?

Hello? Yes, we can hear you.

Yeah, as a long-term investor, I just want to know what type of profitability you are looking for next two to three years.

As I told you, in financial year 2027, we are targeting almost 300% growth in our profitability from 20-year crore rupees a year. We are targeting a path of 90 to 100 crore rupees in this financial year. Likewise, on a similar pattern, the way we had got these beautiful products. We will be delivering a robust profitability in the coming future years. But in this financial year, our target is approximately 90 to 100 crore rupees, bottom and pat, which is almost 300% growth from the last financial year, 2026.

Okay, sir, you also said like 500 crores of pat in next three years.

In three to four years, our target is releasing minimum 500 crore rupees of pat.

Okay, that's all for me. Thank you, sir.

Any other questions? So I think that's all for today. If you have any other questions, you can reach out to us at ir-mufinfinance.com. Over to you, Vishwas, for closing remarks.

Sure. So thank you all for joining this call and for your questions. We hope today's discussion was useful and gave you the better understanding of Moffing Green Finance. We will continue to do these calls every quarter and look forward to staying connecting with you. If you have, as Sarso said, that if you have any further questions, please write us to ir at moffingfinance.com or you can also visit our website at www.moffinggreenfinance.com. Thank you once again for your time and support. Thank you so much.