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Fusion Finance Results: Latest Quarterly Results & Analysis

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Fusion Finance Ltd. 05 Nov 2025 13:07 PM

Q2FY26 Quarterly Result Announced for Fusion Finance Ltd.

Microfinance Institutions company Fusion Finance announced Q2FY26 results

  • AUM stood at Rs 7,038 crore as on September 2025.
  • Total loan disbursements stood at Rs 1,298 crore in Q2FY26; increased by 37% QoQ.
  • Active borrower base stood at ~25.8 lakh as of September 2025.
  • 1,545 branches across 22 states including 3 Union Territories.
  • Total income stood at Rs 433 crore in Q2FY26 vs Rs 446 crore in Q1FY26.
  • Net interest income (NII) for Q2FY26 stable at Rs 243 crore vs Rs. 268 crore in Q1FY26.
  • Net Interest Margin (NIM) increased to 10.85% in Q2FY26 vs 10.29% in Q1FY26.
  • Cost of funds stood at 10.35% in Q2FY26 vs 10.27% in Q1FY26.
  • Pre-provision Operating Profit stood at Rs 89 crore in Q2FY26 vs Rs 87 crore in Q1FY26.
  • Loss after tax stood at Rs 22 crore in Q2FY26 vs loss after tax of Rs 92 crore in Q1FY26.
  • Sustained Stage 3 provision coverage to ~92% in Q2FY26.
  • Credit cost stood at Rs 111 crore in Q2FY26 vs Rs 178 crore in Q1FY26.
  • Gross NPA further declined to 4.61% in Q2FY26 from 5.43% in Q1FY26; and Net NPA stood at 0.38%.
  • Healthy capital adequacy position with CRAR of 31.31%.
  • Robust liquidity of Rs 892 crore aggregate of cash and cash equivalents and liquid assets, amounting to 12.58% of the total assets.

Sanjay Garyali, MD & CEO, Fusion Finance, said: “Our path to recovery continues, reflected in the sharp reduction in losses, growth in disbursements, and consistent improvement in collection efficiency, credit costs, and GNPA levels. These outcomes demonstrate the strength of our disciplined underwriting practices, tighter operational guardrails, and tech-led processes.

We remain focused on driving sustainable growth while maintaining prudent risk management. With overall collection efficiency now at 98.5% and that of the new book at 99.5%, we are building a stronger, more resilient portfolio. In line with our commitment to enhance customer experience, we have made our onboarding process completely paperless. Additionally, with the recent IRDAI approval to operate as a Corporate Insurance Agent, we are now better positioned to offer comprehensive financial solutions beyond lending. Going forward, we aim to grow responsibly across emerging rural and MSME markets.”

Result PDF

Microfinance Institutions company Fusion Finance announced Q1FY26 results

  • Total income stood at Rs 446 crore in Q1FY26 vs Rs 476 crore in Q4FY25.
  • Net interest income (NII) for Q1FY26 stable at Rs 268 crore vs Q4FY25.
  • Net interest Margin (NIM) increased to 10.29% in Q1FY26 vs 8.57%in Q4FY25.
  • Cost of funds reduced to 10.27% in Q1FY26 vs 10.52% in Q4FY25.
  • Pre-provision Operating Profit stood at Rs 87 crore in Q1FY26 vs Rs 90 crore in Q4FY25.
  • Loss after tax stood at Rs 92 crore in Q1FY26.
  • Sustained Stage 3 provision coverage to ~97% in Q1FY26.
  • Credit cost stood at Rs 178 crore in Q1FY26.
  • Gross NPA was 5.43% in Q1FY26 and Net NPA at 0.19%.
  • Healthy capital adequacy position with CRAR of 29.52 % (post equity infusion).
  • Robust liquidity of Rs 724 crore aggregate of cash and cash equivalents and liquid assets, amounting to 9.76% of the total assets.
  • AUM stands at Rs 7,688 crore as on June 2025.
  • Total loan disbursements stood at Rs 950 crore in Q1FY26.
  • Active borrower base stood at ~Rs 28.5 lakh as of June 2025.
  • 1,560 branches across 22 states, including 3 Union Territories.

Devesh Sachdev, Managing Director, Fusion Finance, said: “In Q1FY26, we continued to make progress, moving closer to normalcy. Our strong measures and persistent efforts on the ground have helped us overcome the external and operational hurdles, setting us on a path to recovery. The renewed focus on credit quality and discipline across the sector, along with favourable regulatory steps of lowering the qualifying assets threshold to 60% from 75% will help in ensuring sustainability and future growth.”

Sanjay Garyali, Chief Executive Officer, Fusion Finance, said: “We continue to witness improvements in key business and financial parameters, including collection efficiencies, credit costs and GNPA. As we step into the next phase, our focus remains on driving sustainable growth with strong credit checks, tech-led underwriting, and deeper customer engagement. To deepen our relationship with our customers, we have launched differentiated products like Ujala and Sugam loans and are coming up with new products for the MSME segment too. We are well-prepared for the future. We will continue to grow thoughtfully across emerging rural and MSME markets, backed by a strong balance sheet and a culture built on trust and strong execution.”

Result PDF

Microfinance Institutions company Fusion Finance announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Total income stood at Rs 476 crore in Q4FY25 vs Rs 483 crore in Q3FY25
  • Net interest income (NII) for Q4FY25 increased to Rs 268 crore from Rs 223 crore in Q3FY25
  • Net Interest Margin (NIM) stood at 8.57% in Q4FY25 vs 8.86% in Q3FY25
  • Cost of funds stood at 10.52% in Q4FY25 vs 10.28% in Q3FY25
  • Pre-provision Operating Profit increased to Rs 90 crore in Q4FY25 from Rs 65 crore in Q3FY25
  • Loss after tax stood at Rs 165 crore in Q4FY25
  • Increased Stage 3 provision coverage to 96.53% in Q4FY25 vs 88% in Q3FY25
  • Credit cost decreased to Rs 253 crore in Q4FY25 from Rs 571 crore in Q3FY25 despite higher provision coverage and accelerated write-offs
  • Gross NPA decreased to 7.92% in Q4FY25 from 12.58% in Q3FY25; Net NPA at 0.3%
  • Healthy capital adequacy position with CRAR of 22.42% (30% proforma for Rs 800 crore Rights Issue)
  • Robust liquidity of Rs 798 crore aggregate of cash and cash equivalents and liquid assets, amounting to 9.63 % of the total assets

FY25 Financial Highlights:

  • Total income stood at Rs 2,369 crore in FY25 vs Rs 2,412 crore in FY24
  • Pre-provision Operating Profit stood at Rs 736 crore in FY25 vs Rs 1,028 crore in FY24
  • Loss After Tax stood at Rs 1,225 crore in FY25

Business Highlights:

  • AUM stands at Rs 8,980 crore as on March 2025
  • Total loan disbursements stood at Rs 6,971 crore in FY25
  • Active borrower base stood at 32.08 lakh as of March 2025
  • 1,571 branches across 22 states including 3 Union Territories

Commenting on the FY25 results, Devesh Sachdev, Managing Director, said, “FY25 had been a challenging year for the industry. We were the first ones to recognize the stress and take early concrete steps to address the issues. Since then, we have witnessed many significant and encouraging results indicating that we are already on our path to recovery. Our Rights Issue was successfully completed in Q4FY25 with a subscription of 1.5x. This reflects the continued strong confidence of existing investors in Fusion while bolstering our capital adequacy.”

Sharing his views, Sanjay Garyali, Chief Executive Officer, said, “As | step into this role, | commend Fusion’s early recognition of portfolio stress and the timely, decisive actions that followed. This has set a strong foundation for a healthier, more resilient book. Our portfolio continues to rebalance toward stability, with new book collection efficiency reaching 99.67% in March 2025. We will continue to reinforce this momentum by maintaining robust guardrails across governance, data, and execution — ensuring growth remains disciplined and sustainable.”

Result PDF

Finance company Fusion Finance announced Q3FY25 results

Financial Highlights:

  • Total income stands at Rs 483 crore in Q3FY25 vs Rs 613 crore in Q3FY24.
  • Net interest income (NII) for Q3FY25 is Rs 223 crore as compared to Rs 337 crore in Q3FY24.
  • Net Interest Margin (NIM) at 8.86% in Q3FY25.
  • Cost of Fund reduces to 10.28% in Q3FY25 from 10.37% in Q3FY24.
  • Pre-provision Operating Profit at Rs 65 crore in Q3FY25.
  • Loss After Tax of Rs 719 crore in Q3FY25; Higher loss is owing to reversal of net deferred tax assets (DTA) till date and enhanced provision coverage across all stages.
  • Gross NPA stands at 12.58%; Net NPA at 1.71%.
  • Credit cost at 5.8% in Q3FY25 vs 6.5% in Q2FY25.
  • Healthy capital adequacy position with CRAR of 22.20%.
  • Robust liquidity of Rs 1,151 crore aggregate of cash and cash equivalents and liquid assets, amounting to 12.26 % of the total assets.

Operational & Business Highlights:

  • AUM stands at Rs 10,599 crore in Q3FY25 as compared to Rs 10,693 crore in Q3FY24.
  • Disbursements stand at Rs 1,168 crore in Q3FY25.
  • Borrower base stands at ~36.6 lakh.
  • Current portfolio Collection Efficiency stands at 97.7% in Dec’24 higher than 96.1% in Q2FY25.

Devesh Sachdev, MD & CEO, Fusion Finance, said: “Our proactive actions in Q2 and tightened underwriting norms are showing positive trends across various parameters, including current portfolio’s collection efficiency, flow rates and net PAR accretion, among others. As guided, our provisioning for Q3 is lower than Q2 despite increase in provision coverage ratio. This quarter, we have reversed all net deferred tax assets (DTA) till date which has impacted our profitability. Otherwise, at a normalize tax rate, we would have witnessed lower loss of around Rs 380 crore, with standard corporate tax rate applied on the PBT. Importantly, there is no material effect on our CRAR and cash flows.

Demonstrating continued confidence from our lenders, we have successfully secured waivers from the majority of them for covenant breaches identified during last quarter. We remain engaged with the few remaining lenders and are confident that there will be no demand for immediate repayment of borrowed funds. With our Rs. 800 crore rights issue progressing as planned and a robust CRAR of 22.20%, our capital position remains strong.

With evolving industry dynamics and customer behaviour we remain confident in our approach to navigate these changes and continue to remain transparent and agile in our strategy and actions.”

Result PDF

Finance company Fusion Finance announced Q2FY25 results

Financial Highlights:

  • Total income increases by 23.19% YoY from Rs 571 crore in Q2FY24 to Rs 704 in Q2FY25
  • Net interest income (NII) increases by 30.46% YoY from Rs 305 crore in Q2FY24 to Rs 397 crore in Q2FY25.
  • Net Interest Margin (NIM) increases from 11.12% to 11.48% (YoY).
  • Cost of Fund reduces from 10.55% to 10.05% (YoY).
  • Pre-provision Operating Profit (PPOP) increases 17.39% YoY from Rs 242 crore in Q2FY24 to Rs 284 crore in Q2FY25; Overall profitability impacted leading to a loss of Rs 305 crore due to higher than usual provisioning.
  • Gross NPA stands at 9.41%; Net NPA at 2.41%.
  • Healthy capital adequacy position with CRAR of 24.39%.
  • Robust liquidity of Rs 1,793 crore of cash and cash equivalents, amounting to 15.62% of the total assets.

Other Highlights:

  • Asset Under Management (AUM) grows by 15.41% from Rs 10,026 crore in Q2FY24 to Rs 11,571 crore in Q2FY25.
  • Disbursements stand at Rs 1,661 crore in Q2FY25.
  • Borrower base Stands at 38.52 lakh~.
  • 65 branches added in Q2FY25, increasing the total branch network to 1,463 across 22 States, including 3 Union Territories.

Devesh Sachdev, MD & CEO, Fusion Finance, said: “During Q2FY25, we continued to experience the impact of delinquency trends seen industrywide, making this a tough quarter. As shared previously, we have been closely tracking the evolving credit behaviour of the borrowers and have implemented strong measures to tighten credit criteria for new disbursements along with an increased focus on field collections and have also curtailed our growth resulting in muted AUM numbers QoQ basis. Our ECL provisioning for this quarter is higher, thus impacting our overall profitability. Having said that, our pre-provisioning profit (PPOP) on YoY basis remains steady, and we continue to have a strong Balance Sheet with a healthy CAR of 24.39%. We expect to file the documents for Rights Issue of up to Rs 550 crore in this quarter. As we continue to take a calibrated approach, our focus will be on treading the prudent growth path.”

Result PDF

Finance company Fusion Micro Finance announced Q1FY25 results:

Financial Highlights: 

  • Total income increases by 27.84% YoY from Rs 552.78 crore to Rs 706.68 crore
  • Net interest income (NII) increases by 34.85% YoY from Rs 294.07 crore to Rs 396.55 crore
  • Net Interest Margin (NIM) increases from 10.89% to 11.64% (YoY)
  • Cost of Fund reduces from 10.57% to 10.09% (YoY)
  • Pre-provision Operating Profit (PPOP) increases 26.49% YoY from 235.39 crore to Rs 297.75 crore; Overall profitability impacted leading to a loss of Rs 35.62 crore due to higher than usual provisioning
  • Gross NPA stands at 5.46%; Net NPA at 1.25%
  • Healthy capital adequacy position with CRAR of 25.86%
  • Robust liquidity of Rs 1,590 crore of cash and cash equivalents, amounting to 12.98% of the total assets

Business Highlights:

  • Asset Under Management (AUM) grows 25.54% from Rs 9,711.75 crore to Rs 12,192.58 crore
  • Disbursements increase by 30.73% YoY from Rs 2,284.61 crore to Rs 2,986.65 crore
  • Borrower base increases to 39.5 lakh~
  • 101 branches added in Q1 FY25, increasing the total branch network to 1,398 across 22 States, including 3 Union Territories.

Speaking on the results Devesh Sachdev, MD&CEO, Fusion Finance said, “Our AUM has grown consistently and we continue to add new customers in a calibrated manner. As an agile and prudent organization we consistently review our portfolio and we noticed delinquency trends in certain pockets due to over-leverage and external factors. Due to which we have done early risk recognition and tightened our ECL model leading to higher than usual provisioning in this quarter that had an impact on our overall profitability. However, our preprovisioning profits (PPOP) have been in line with our consistent performance in the previous quarters and we expect to go back to our normal course in H2FY25. Our strong Balance Sheet with 25.86% CRAR underlines our robust business fundamentals and we are committed to follow a prudent path to ensure sustainable growth.”

Result PDF

Finance company Fusion Micro Finance announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Total income increased 29.7% YoY from Rs 520.7 Crore to Rs 675.1 Crore
• Net interest income (NII) increased 31.5% YoY from Rs 273.8 Crore to Rs 359.9 Crore
• Pre-provision operating profit (PPOP) increased 31.5% YoY from Rs 221.1 Crore to Rs 290.7 Crore
• Cost of Fund reduced from 10.4% to 10.2% (YoY)
• GNPA reduced from 3.0% to 2.8% (QoQ) and NNPA reduced from 0.8% to 0.6% (QoQ)
• Write-offs were Rs 75.1 Crore
• Profit After Tax (PAT) increased by 15.9% YoY from Rs 114.5 Crore to Rs 132.7 Crore
• Healthy capital position with CRAR of 27.5%
• Robust liquidity of Rs 1,474.7 Crore of cash & cash equivalents, amounting to 12.5% of the total assets

FY24 Financial Highlights:

• Asset under Management (AUM) grew 23.5% YoY from Rs 9,296.2 Crore to Rs 11,476.1 Crore
• Disbursements grew 19.8% YoY from Rs 8,596.1 Crore to Rs 10,294.4 Crore
• Net NPA 0.6%
• Borrower base increased from ~35.3 lakh to ~38.6 lakh
• 211 branches added in FY24, increasing the total branch network to 1,297 branches across 22 States including 3 Union Territories

Commenting on the performance, Devesh Sachdev, MD and CEO said, “We closed a very successful FY24 with the highest ever PAT, consistent growth in AUM, healthy return ratios and overall robust operational and financial metrics. We continue to invest in human capital, technology, network and process efficiencies. This reiterates our commitment to build a responsible and sustainable organization while creating long term value for our shareholders.”

Result PDF

Non-banking Financial company Fusion Micro Finance announced Q2FY24 results:

  • Asset under Management (AUM) grew 24.60% YoY from Rs 8,047.18 crore to Rs 10,026.43 crore
  • Disbursements grew 14.22% YoY to Rs 2,343.77 crore
  • Net NPA at 0.65%
  • Borrower base increased to 36.9 lakhs
  • 61 branches added in Q2 FY24, increasing the total branch network to 1,164 across 22 States, including 3 Union Territories
  • Total income increased 26.29% YoY from Rs 452.33 crore to Rs 571.26 crore
  • Net interest income (NII) increased 26.33% YoY from Rs 241.07 crore to Rs 304.54 crore
  • Pre-provision operating profit (PPOP) increased 29.11% YoY from Rs 187.27 crore to Rs 241.79 crore
  • Total Expected Credit Loss (ECL) is Rs 300.24 crore (3.34%) (includes management overlay of Rs 61.48 crore), GNPA of Rs 241.10 crore (2.68%) and NNPA reduced to 0.65% from 0.78% (QoQ)
  • Write-offs were Rs 103.42 crore
  • Profit After Tax (PAT) increased by 32.22% YoY to Rs 125.69 crore from Rs 95.06 crore
  • Healthy capital position with CRAR of 28.78%.
  • Robust liquidity of Rs 1,400.43 crore of cash & cash equivalents, amounting to 13.42% of the total assets
  • Crossed a significant milestone of Rs 10,000 crore AUM
  • CRISIL has upgraded the credit rating to ‘CRISIL A /Stable’. This is the second rating upgrade in the last 11 months.

Commenting on the performance, Devesh Sachdev, Managing Director and CEO, Fusion Micro Finance said, “We continue to deliver a good set of numbers and are confident of strong performance in FY24. In this quarter, we achieved two very significant milestones of crossing Rs 10,000 crore Asset Under Management and a rating upgrade to ‘CRISIL A /Stable’. This is the second upgrade in less than 11 months. We added ~2.4 lakh new clients in H1, YOY growth of 17.69 %. We have clocked Rs 125.69 crore Profit After Tax (PAT), up by 32.22 % YOY. We are navigating the elevated cost of funds environment very well with the Marginal Cost of Borrowing at 10.55 % which is the lowest in the last 4 quarters. Our key strategic focus remains to deliver long-term sustainable growth”.

 

 

Result PDF

Non-banking Financial company Fusion Micro Finance announced Q1FY24 results:

  • Asset Under Management (AUM) grew 31.43% YoY to Rs 9,711.75 crore from Rs 7,389.02 crore
  • Disbursements grew 15.21% YoY to Rs 2,284.61 crore
  • Net NPA reduced to 0.78%
  • Borrower base increased to ~36 lakh
  • 17 branches added in Q1, increasing the total branch network to 1,103 across 20 States, including 3 Union Territories
  • Total income increased by 53.36% YoY to Rs 552.78 crore from Rs 360.45 crore
  • Net interest income (NII) increased by 59.24% YoY to Rs 294.07 crore from Rs 184.67 crore
  • Pre-provision Operating Profit (PPOP) increased by 95.85% YoY to Rs 235.39 crore from Rs 120.19 crore
  • Total Expected Credit Loss (ECL) is Rs 328.38 crore (3.76%) (includes management overlay of Rs 57.68 crore), GNPA reduced to 3.20% from 3.46% and NNPA reduced to 0.78% from 0.87% (QoQ)
  • Write-offs were Rs 59.36 crore
  • Profit After Tax (PAT) increased by 60.40% YoY to Rs 120.46 crore from Rs 75.10 crore
  • Healthy capital position with a CRAR of 28.26%
  • Robust liquidity of Rs 1,177.08 crore of cash and cash equivalents, amounting to 11.84% of the total assets
  • Credit Rating A positive by ICRA and A Stable by CRISIL and CARE

Commenting on the performance, Devesh Sachdev, Managing Director and CEO, Fusion Micro Finance said, “We are off to a good start and confident of maintaining the momentum going forward. In this quarter, our Profit After Tax (PAT) increased by 60.40% YoY to Rs 120.46 crore from Rs 75.10 crore. Our Asset Under Management (AUM) grew by 31.43% YoY to Rs 9,711.75 crore from Rs 7,389.02 crore and our borrower base grew to ~36 lakh. Our NIM has expanded to 10.89% and there would be further expansion before it stabilizes. We continue to strengthen our processes, digital capabilities, and human capital. Keeping our customers at the center, we are confident of delivering sustainable growth”.

 

Result PDF

Non-banking Financial company Fusion Micro Finance announced Q4FY23 & FY23 results:

  • Q4FY23:
    • Total income increased 39.76% YoY from Rs 3,725.55 million to Rs 5,206.92 million
    • Net interest income (NII) increased 62.37% YoY from Rs 1,685.95 million to Rs 2,737.55 million
    • Pre-provision operating profit increased 47.77% YoY from Rs 1,496.37 million to Rs 2,211.23 million
    • Impairment of financial instruments declined 48.36% YoY from Rs 1,340.02 million to Rs 691.96 million
    • Total Expected Credit Loss (ECL) is Rs 3,126.62 million (3.74%) (includes management overlay of Rs 512.50 million) against GNPA of Rs 2,888.99 million (3.46%) and NNPA further reduced from 0.98% to 0.87% QoQ
      • Write-offs were Rs 457.80 million
    • Profit After Tax (PAT) increased by 767.93% YoY from Rs 131.95 million to Rs 1,145.24 million
    • Healthy capital position with a CRAR of 27.94%
    • Credit Rating remains at “A” Stable by CRISIL, CARE, and ICRA
  • FY23:
    • Disbursements grew 39.10% YoY from Rs 61,797.77 million to Rs 85,961.13 million
    • Borrower base increased to 3.53 million across 1,086 branches
    • Addition of ~ 0.8 million new clients during the year
    • Cost of Funds reduced by 13 bps
    • Net NPA dropped to 0.87% from 1.64%

Commenting on the performance, Devesh Sachdev, Managing Director and CEO, Fusion Micro Finance, said, “FY23 has been a milestone year for the Company as we successfully got listed and have demonstrated strong performance consistently across all operational and financial metrics. Our AUM has grown by 36.99% YoY to Rs 92,962.19 million. We reached a base of 3.53 million borrowers and clocked the highest PAT since inception resulting in ROA of 4.65% and ROE of 21.16 %.”

“We have achieved these results due to our focused strategy of geographical diversification, building an extensive network, investing in human capital, technology, sound risk management and building for the future. We are well-positioned to achieve robust and sustainable long-term growth." he added.

 

 

Result PDF

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