Mufin Bets on Profitable Growth as EV, Solar Financing Portfolio Nears ₹460cr

Mufin Bets on Profitable Growth as EV, Solar Financing Portfolio Nears ₹460cr Photograph: (Archive)

Mufin Green Finance is betting on profitability-led growth while continuing to expand its clean mobility and renewable energy financing business, with its EV and solar financing portfolio reaching nearly ₹460 crore at the end of FY26.

The NBFC's EV and solar financing assets under management (AUM) stood at ₹459 crore as of March 2026, including ₹166 crore in the retail segment and ₹293 crore in the business-to-business portfolio. The segment accounts for around 30% of Mufin's total AUM of ₹1,541 crore. The company finances electric three-wheelers, four-wheelers, buses, batteries, charging infrastructure and solar systems across India.

Management said the EV and solar portfolio remains a key pillar of its green finance strategy, supported by partnerships with leading manufacturers including Tata Motors, Mahindra & Mahindra and Bajaj Auto. The company said its focus is increasingly on improving portfolio quality and returns rather than pursuing volume-led growth.

"Stable, seasoned book with improving asset quality — capital being gradually redeployed into higher-growth verticals," the company said in its investor presentation, describing the evolution of its EV and solar financing business.

The company reported collection efficiency of 97.71% and gross NPA of 1.94% in its EV and solar financing portfolio, reflecting improving asset quality trends. It is also leveraging AI-based underwriting and IoT-enabled monitoring of financed assets to improve credit assessment and portfolio performance.

During the earnings call, Managing Director Kapil Garg said Mufin continues to attract support from global development finance institutions focused on climate finance, including Finnfund, Symbiotics, BlueOrchard and the U.S. International Development Finance Corporation. These institutions account for a significant portion of the company's borrowing base and continue to support its renewable energy and electric mobility lending activities.

While newer digital lending products are expected to contribute a larger share of future earnings, Mufin said EV and solar financing will remain central to its mission of supporting India's energy transition through access to affordable green capital.