Mufin Green Finance Limited’s Credit Rating Upgraded to ‘A- ‘by Credit Rating Agency – EQ
Delhi, India – Mufin Green Finance Limited (MGFL), a leading Non-Banking Financial Company (NBFC-ND) and a key player in India’s sustainable finance ecosystem, has obtained an upgrade in its ratings. Acuite Ratings and Research, a SEBI-approved rating entity has rated it as ‘A- ‘, a significant improvement over its earlier rating of ‘BBB+’. The upgrade reflects MGFL’s sustained growth, robust asset quality, and strong capitalisation, positioning the company for enhanced financial flexibility and profitability.
“The A- rating is a testament to our disciplined growth and unwavering commitment to sustainable finance,” said Mr. Kapil Garg, Managing Director of Mufin Green Finance Limited. “It strengthens our ability to scale operations while driving India’s green mobility revolution. The A- rating will provide us with access to lower-cost funding from Public Sector Undertakings (PSUs) and other financial institutions, significantly reducing our borrowing costs. It will boost our efforts to improve India’s sustainability quotient by financing electric vehicles, charging infrastructure, and solar panels, etc.”
The ratings upgrade acknowledges MGFL’s significant increase in Assets Under Management (AUM), which grew from ₹662.73 crore as of March 31, 2024, to ₹989.70 crore as of 9MFY25, driven by strong disbursement traction. The company maintained commendable asset quality, with Gross Non-Performing Assets (GNPA) at 1.73% and Net Non-Performing Assets (NNPA) at 1.47% as of March 31, 2024, alongside an on-time portfolio of 87.62%.
MGFL’s capitalisation levels remain a cornerstone of its financial stability, bolstered by capital infusions of ₹81.47 crore in FY2024 and ₹223.65 crore in 9MFY25. This has elevated the company’s net worth from ₹269.38 crore in FY24 to ₹504.67 crore in 9MFY25, with a Capital Adequacy Ratio (CAR) of 35.04% as of 9MFY25 (34.70% as of March 31, 2024). The company has financed nearly up to 3 lakhs electric vehicles since inception, reinforcing its leadership in the EV ecosystem.
MGFL has a stable outlook despite potential challenges including limited portfolio seasoning and geographic concentration in Uttar Pradesh, Bihar, and Delhi (over 50% of AUM as of 9MFY24). It has a strong liquidity position, with ₹251.13 crore in cash and equivalents as of March 31, 2024, and zero negative cumulative mismatches. The management team, under the astute leadership of Kapil Garg, remains committed to enhancing India’s green and impact lending ecosystem.
About Mufin Green Finance Limited
Incorporated on May 13, 2016, in Rajasthan and acquired by Hindon Mercantile Limited in March 2022, Mufin Green Finance Limited is a Reserve Bank of India-registered NBFC-ND. The company specialises in financing the electric vehicle ecosystem, including vehicles, charging infrastructure, and solar panels, alongside mediclaim premium financing and corporate loans. With a consolidated net worth of ₹504.67 crore as of 9MFY25 and a track record of financing ~80,000 EVs, MGFL is a pioneer in India’s sustainable finance sector.
