Key Financial Figures & Operational Metrics

Borrowings & Cost of Funds:

  • Total borrowings increased to ₹1,551 crore in Q1 FY27 from ₹771 crore in Q1 FY26 (120% growth)
  • Cost of borrowing reduced significantly from 13.80% in Q1 FY26 to 11.17% in Q1 FY27 (263 basis points reduction)
  • Debt-to-equity ratio improved to 2.43 times in March 2026 from 2.65 times in March 2025

Product Portfolio Performance:

  • Mediclaim Financing portfolio approximately ₹677 crore, described as "almost entirely NPA-free" with minimal delinquency
  • Salary Saathi product described as fully digital lending solution with minimal to nil delinquency

Asset Quality:

  • Gross NPA improved to 1.91% in Q1 FY27 from 1.94% in previous quarter
  • Net NPA also improved quarter-on-quarter (specific percentage not quantified)

Operational Efficiency:

  • Employee count reduced from 499 in Q1 FY26 to approximately 367 currently
  • Target to reduce employee count to approximately 300 by end of current year
  • Strong operating leverage achieved on disbursement-per-employee basis

Lender Relationships:

  • Active lenders increased from 20+ in Q1 FY26 to 35+ in Q1 FY27
  • Includes first-time participation from PSU banks with favorable ticket sizes and interest rates

Strategic Updates & Business Developments

Product Diversification:

  • Shift from traditional branch-based, manpower-intensive model to tech-based lending products
  • Mediclaim Financing established as major business line, becoming one of the largest players in this domain
  • Continuous signing of new contracts with insurance companies for Mediclaim Financing
  • Salary Saathi product deeply integrated with state governments with significant forecast volumes

Credit Rating Progress:

  • Rating upgrade journey: Started at BBB, then BBB+, then A- (Stable)
  • Currently in discussion for one-notch upgrade to 'A' rating
  • Expected rating upgrade in next quarter, which will further reduce cost of borrowing

Forward-Looking Commentary

Management expects continued improvement in delinquency numbers and asset quality as company pivots to stronger AUM. The reduced cost of borrowing is expected to improve profitability and strengthen future quarters. Rating upgrade to 'A' is anticipated in the next quarter.

Additional Information

Transcript and audio recording available on company website. For further questions, contact ir@mufinfinance.com or visit www.mufingreenfinance.com.