Company Overview
Fusion Finance Limited (formerly Fusion Micro Finance Limited) reported a significant turnaround in FY26 with ₹13.85 crore net profit compared to a ₹1,224.54 crore loss in FY25, driven by reduced impairment provisions and improved operational efficiency.
Financial Performance
Revenue from operations stood at ₹1,698.53 crore (down from ₹2,343.94 crore), with interest income of ₹1,532.52 crore. The company achieved substantial improvement in asset quality, with GNPA reducing from 7.92% to 3.21% and net NPA at 0.51% as of Q4 FY26. Collection efficiency reached 99.66% in the fourth quarter, while credit costs declined for the sixth consecutive quarter, down 78% YoY.
Capital Structure & Fundraising
The company successfully completed a ₹799.86 crore rights issue, increasing equity capital from ₹100.65 crore to ₹161.52 crore. This strengthened the net worth to ₹2,456 crore (up 49% YoY) and reduced borrowings by ₹993.64 crore. CRAR improved to 36.46% against the minimum requirement of 15%, with liquidity of ₹1,913 crore representing 23.06% of total assets.
Operational Highlights
Microfinance business showed 21,50,131 active borrowers with AUM of ₹6,635 crore, while MSME portfolio grew 14.78% to ₹772.5 crore. The company expanded insurance distribution capabilities with IRDAI license and implemented digital transformation initiatives including AI-enabled risk management and strengthened cybersecurity framework.
Corporate Governance & AGM
The 32nd Annual General Meeting is scheduled for July 22, 2026 via video conferencing to adopt FY26 financial statements and re-appoint Mr. Sanjay Garyali as Director. Auditors B.K. Khare & Co. issued an unqualified opinion confirming adequate internal financial controls operating effectively as of March 31, 2026.
Regulatory Compliance & Ratings
The company complied with SEBI LODR Regulations, Companies Act 2013, and RBI guidelines, maintaining CRAR at 36.46% and LCR at 335.09%. CARE reaffirmed credit ratings at A with outlook upgraded to Stable. The company received IRDAI corporate agency license and formalized ESG policy with CSR expenditure of ₹3.55 crore.
Subsequent Developments
No material subsequent events were reported up to May 15, 2026, with the company maintaining strong capital adequacy and liquidity positions while continuing discussions with lenders for covenant extensions on ₹582.92 crore borrowings.