Mufin Green Finance Limited`s Credit Rating Upgraded to `A- `by Credit Rating Agency
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 capitalization, 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.”
MGFL’s capitalisation levels remain a cornerstone of its financial stability, bolstered by capital infusions of Rs.81.47 crore in FY2024 and Rs.223.65 crore in 9MFY25. This has elevated the company’s net worth from Rs.269.38 crore in FY24 to Rs.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 upto 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 Rs.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.
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