Fusion Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • AUM grew to ₹7,702 Cr in Q1 FY27, a 4% increase from ₹7,407 Cr in Q4 FY26.
  • Disbursements were ₹1,783 Cr in Q1 FY27, showing 88% YoY growth from ₹950 Cr in Q1 FY26 but a 17% QoQ decrease from ₹2,140 Cr in Q4 FY26.
  • 2.76 lakh loans were disbursed in Q1 FY27, with 36% going to new customers.
  • AUM per branch increased 6% QoQ to ₹5.1 Cr.
  • Collection Efficiency (MFI) averaged 99.76% in Q1 FY27, a 10 bps improvement from 99.66% in Q4 FY26.
  • Net forward flow rate remained below 0.1% in Q1 FY27.

Key drivers of operational performance: Deployment of next-generation LOS and LMS platforms, automated call center, AI-powered customer engagement platform driving 6Mn+ interactions, geographic expansion into new markets, and rationalization of existing branch network.

Segment-wise Performance

  • MFI Business: Continued focus on borrower deleveraging with 37.7% of customers being Fusion-only (vs 37.1% in Mar'26) and only 6.8% having 3+ lenders.
  • MSME Business: Scaling secured MSME franchise in Tamil Nadu as priority market, leveraging existing MFI branch footprint for sourcing and disbursements.

Explanation of significant changes in segment performance: Growth driven by focused initiatives to accelerate profitable growth and strengthen franchise across both MFI and MSME segments.

Financial Highlights

Revenue: Not explicitly stated as a line item; Total Income was ₹458 Cr in Q1 FY27.

EBITDA: Not explicitly stated; PPOP (Pre-Provision Operating Profit) was ₹102 Cr.

PAT: ₹62 Cr in Q1 FY27.

EPS: Not specified.

Margins: NIM was 11.93% in Q1 FY27 (49 bps QoQ improvement from 11.44% in Q4 FY26).

YoY/QoQ comparison: PAT showed 67% QoQ growth in PBT from ₹37 Cr to ₹62 Cr, but 45% decline in PAT from ₹114 Cr in Q4 FY26 (which included DTA recognition of ₹76.8 Cr). YoY improvement from loss of ₹92 Cr in Q1 FY26.

Drivers of financial performance: Higher NII (6% QoQ growth to ₹236 Cr), controlled OPEX (1% QoQ growth to ₹206 Cr), and significantly lower credit cost (29% QoQ decline to ₹40 Cr).

Comparison to market estimates: Not available.

Key Risks: Not explicitly disclosed in presentation.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified.

Regional Breakdown: Disbursement trends by state showed Uttar Pradesh (27% share, ₹151 Cr), Bihar (19% share, ₹109 Cr), Odisha (8% share, ₹46 Cr), Madhya Pradesh (9% share, ₹48 Cr), Tamil Nadu (4% share, ₹24 Cr), Jharkhand (6% share, ₹35 Cr), and Other States (27% share, ₹150 Cr).

Balance Sheet Snapshot

Net Debt/Equity: Debt-to-Equity ratio maintained at 2.3x.

Reserves: Not explicitly stated; Total equity was ₹2,521 Cr.

Current Assets/Liabilities: Cash & bank balances were ₹1,880 Cr; Other financial liabilities were ₹221 Cr.

Working Capital/Leverage Metrics: CRAR was 36.95% (49 bps QoQ improvement from 36.46%).

Financial Health Insights: Strong liquidity position of ₹1,880 Cr, well-capitalized balance sheet.

Capex & Cash Flow Health

Capital Expenditure: Not specified.

Free Cash Flow: Not specified.

Operating Cash Flow: Not specified.

Net Debt Movement: Borrowings increased 5% QoQ to ₹5,480 Cr.

Investment Rationale: Focus on technology upgrades (AI deployment), capacity expansion, and geographic growth.

Strategic & R&D Initiatives

Investments in Innovation: Deploying next-generation LOS and LMS platforms, AI-powered underwriting with video PD & income assessment (pilot), AI across customer onboarding, collections, customer service, risk & fraud management.

Expected impact on growth: AI platform driving 6Mn+ customer interactions, proving model can grow efficiently; reduced call charges by 15K.

Strategic Rationale: Transforming from excellence in execution to technology-driven, customer-centric leader; expanding into high-growth markets while rationalizing existing network.

Industry Trends & Business Environment

Macro/Industry Trends: Not explicitly discussed beyond company-specific context.

Impact on Company: Not explicitly discussed.

Management Commentary & Growth Outlook

Strategic Outlook: Focused initiatives to accelerate profitable growth and strengthen franchise through technology deployment, geographic expansion, and risk management.

FY Guidance: Not explicitly provided.

Market Share Targets: Not specified.

Risks and Opportunities: Not explicitly highlighted beyond ongoing portfolio quality improvements.

ESG Updates

  • Continued adherence to IFC Exclusion List
  • Expanded digital receipts, SMS confirmations and paperless workflows
  • Compliant e-waste disposal per India's E-Waste Rules 2022
  • Strengthened customer-centric practices aligned with Cerise+SPTF standards
  • 6 CSR programs covering 16 districts across 12 states/UTs, touching 1,593 lives
  • Awarded 96% on Code of Conduct Assessment by M-CRIL
  • Received Gold Level Certification by M-CRIL for Client Protection
  • Received Alpha rating for Microfinance Institutional Rating by M-CRIL