Mufin Green Finance Gets CareEdge B/Stable Rating For Proposed USD 10 Million Bonds

Mufin Green Finance Limited, a non-banking financial company registered with the Reserve Bank of India, has received a long-term foreign currency rating of ‘CareEdge B/Stable’ from CareEdge Global IFSC Limited for its proposed USD 10 million foreign currency bonds.

CareEdge highlighted the company’s strong capital position, improving funding profile and scalable digital business model. However, the rating also considered Mufin Green Finance’s modest operating scale, evolving loan product portfolio and moderate earnings performance.

The company has strengthened its capitalization through regular equity fundraising and retained earnings. Over the past four years, it has raised more than Rs 4 billion through equity, increasing its adjusted tangible net worth to Rs 5.7 billion as of March 31, 2026. Its capital adequacy ratio stood at 32.1%, significantly above the regulatory minimum of 15%.

Managed gearing was 2.4x in March 2026, providing room for portfolio growth while remaining below the company’s internal leverage limit of 4x.

Mufin Green Finance has also diversified its funding sources through term loans, non-convertible debentures, external commercial borrowings and securitisation. The company has more than 40 lending partners. Its quarterly borrowing cost declined from 13.8% in Q1FY26 to 12.2% in Q4FY26.

The company operates through a digital, branchless model, using technology for loan origination, underwriting and collections. Initially focused on electric vehicle financing, it has expanded into health insurance premium financing, collateral-backed business loans, solar financing and salary-linked loans for government employees.

Its assets under management increased from Rs 8.4 billion in March 2025 to Rs 15.4 billion in March 2026 and reached nearly Rs 16 billion by June 2026. Gross non-performing assets stood at 1.9%, while net non-performing assets were 1.6% in June 2026.

Profit for the first quarter of the current fiscal year rose to Rs 140 million from Rs 41 million a year earlier. The company also maintained Rs 1.5 billion in unencumbered cash reserves, supporting its liquidity position.