Mufin Green Finance reported a 169.4% YoY jump in net profit for Q2 FY27, reaching ₹15.06 crore. Revenue grew 62.1% to ₹86.68 crore, fueled by a 71.8% expansion in its gross loan book.
For a lender like Mufin Green Finance, growth is measured by the size and quality of its loan book. The September quarter shows it is scaling rapidly, with profit more than doubling year-on-year even as the cost of funding that growth picked up pace.
The numbers tell a story of powerful top-line momentum. Revenue reached ₹86.68 crore, up 62.1% from a year ago and 12.8% sequentially. Net profit surged 169.4% to ₹15.06 crore. The profit margin expanded dramatically year-on-year but eased slightly from the previous quarter.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
86.68YoY +62%
76.86
53.48
Profit (₹ Cr)
15.06YoY +169%
14.01
5.59
Net Profit Margin
17.4%YoY +67%
18.2%
10.4%
Why profits grew faster than revenue
The stellar profit growth was powered by an expanding asset base and operating leverage. According to the company's investor presentation, gross Assets Under Management (AUM) hit ₹1,766 crore, up 71.8% from a year ago. Disbursements jumped 31.4% quarter-on-quarter to ₹590.5 crore.
Operating expenses grew at a slower 27.7% clip, as reported by Arthneeti. This allowed profit before tax to grow 135.9% year-on-year. The company's focus on digital products like Mediclaim and Salary Saathi is driving this efficient scaling.
The cost of funding the boom
Growth came at a price. Interest expense doubled year-on-year to ₹52.91 crore and rose 28.2% sequentially. This reflects the larger borrowings needed to fund the loan book, which grew to ₹1,766 crore.
Total borrowings increased by ₹348 crore in the six months to September 2026, as noted by Tulsian AI. The sequential dip in net profit margin, from 18.2% to 17.4%, points to this rising funding cost. Management is targeting a cost of funds below 10.5% by March 2027.
How long can this run last?
The outlook hinges on balancing growth with profitability. Asset quality improved, with gross NPA at 1.77% and net NPA at 1.50% for Q2 FY27, per Tulsian AI. The capital adequacy ratio of 27.73% provides room for more lending.
However, the stock trades at a significant premium. MarketsMojo notes a P/E of 75.2, a 275% premium to the industry, which prices in near-perfect execution. Any stumble in AUM growth or a rise in credit costs could pressure these lofty valuations.
Key Points
Net profit surged 169.4% year-on-year to ₹15.06 crore on the back of a 71.8% expansion in gross AUM.
Net profit margin improved by 700 basis points year-on-year but dipped 80 basis points sequentially due to faster-rising interest costs.
Asset quality strengthened, with gross NPA reported at 1.77% for Q2 FY27, down from 1.91% in the prior quarter.
The company is targeting a reduction in its cost of funds to below 10.5% by the end of this fiscal year.
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Hexa Perspective
Mufin Green is in a classic high-growth phase, where expanding the loan book is the priority even as funding costs rise. The 169% profit jump is impressive, but the sequential margin compression shows the tension. The next few quarters will test if management can hit its cost-of-funds target and maintain asset quality while disbursing at this pace. The current valuation assumes they will, leaving little room for error.
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Frequently asked questions
What were Mufin Green Finance's Q2 FY27 results?
Mufin Green Finance reported a net profit of ₹15.06 crore for Q2 FY27 (July-September 2026), a 169.4% increase year-on-year. Revenue from operations grew 62.1% to ₹86.68 crore, driven by a 71.8% surge in gross Assets Under Management (AUM).
Why did Mufin Green Finance's profit jump 169% in Q2 FY27?
Mufin Green's profit jumped due to strong loan book growth and operating leverage. Gross AUM grew 71.8% year-on-year to ₹1,766 crore, while operating expenses rose at a slower 27.7% rate, as per the company's investor presentation, leading to a 135.9% rise in profit before tax.
Why did Mufin Green Finance's interest expense rise 100.5% YoY in Q2 FY27?
Interest expense doubled because the company borrowed more to fund its rapidly expanding loan book. Total borrowings increased by ₹348 crore in the six months to September 2026, as reported by Tulsian AI, to support a 71.8% year-on-year growth in gross Assets Under Management.
Why did Mufin Green Finance's net profit margin decline 80 bps QoQ in Q2 FY27?
The net profit margin dipped sequentially from 18.2% to 17.4% because interest costs rose faster than revenue. Interest expense grew 28.2% quarter-on-quarter, outpacing the 12.8% growth in revenue, as the company funded its loan book expansion.
What is Mufin Green Finance's asset quality in Q2 FY27?
Asset quality improved in Q2 FY27. According to Tulsian AI, the gross NPA ratio was 1.77% and the net NPA ratio was 1.50%, showing a sequential improvement from 1.91% gross NPA in the previous quarter.
How did Mufin Green Finance's loan book grow in Q2 FY27?
Mufin Green's gross Assets Under Management (AUM) grew 71.8% year-on-year and 10.4% quarter-on-quarter to ₹1,766.07 crore in Q2 FY27. Quarterly disbursements jumped 31.4% to ₹590.51 crore, indicating strong lending activity.
What guidance did Mufin Green Finance management provide for FY27?
Management, via its investor presentation, has targeted reducing the cost of funds to below 10.5% by March 2027. The company is focusing on growth through technology and scaling its digital lending portfolios like Mediclaim and Salary Saathi.
Did Mufin Green Finance's Q2 FY27 results beat analyst estimates?
Specific analyst estimates for revenue and profit are not detailed in the available research. However, reports highlight the results as demonstrating "strong operational momentum" and "impressive performance," with profit reaching a record quarterly high.
Have institutional investors changed their stake in Mufin Green Finance?
According to MarketsMojo, institutional holdings have expanded modestly. Mutual funds entered with a 1.67% stake in Q1 FY27, which remained stable in Q2. Foreign institutional investors held 1.80%, down slightly from 2.26% in the previous quarter.
What are Mufin Green Finance's capital expenditure plans?
The company's investor presentation indicates no major physical asset or plant investments. Mufin Green emphasizes growth through technology, scale, and responsible lending rather than traditional capital expenditure.
Mufin Green Finance Q2 FY27 AUM
Mufin Green Finance's gross Assets Under Management (AUM) stood at ₹1,766.07 crore for Q2 FY27 (September 2026). This represents a 10.4% increase from the previous quarter and a 71.8% surge compared to the same quarter last year.
Mufin Green Finance Q2 results 2026
Mufin Green Finance announced its Q2 FY27 (July-September 2026) results in November 2026. The company reported a net profit of ₹15.06 crore, up 169.4% year-on-year, and revenue of ₹86.68 crore, up 62.1%, as per its financial filings.
Mufin Green Finance net profit Q2 FY27
Mufin Green Finance's net profit for Q2 FY27 (the September 2026 quarter) was ₹15.06 crore. This marks a significant 169.4% increase from the ₹5.59 crore profit reported in the same quarter of the previous fiscal year.
