Date: November 02, 2026

Business Highlights Q2 FY27

  • AUM grew approximately 14% YoY to INR 8,007 Cr, supported by sustained portfolio expansion.
  • Disbursements increased approximately 33% YoY to INR 1,726 Cr.
  • MSME loan ticket size enhanced from INR 25 lakh to up to INR 50 lakh, enabling the Company to serve more established small businesses.
  • Branch productivity improved approximately 19% YoY, with AUM per branch reaching INR 5.4 Cr.
  • Average Net collection efficiency remained robust at 99.84% (gross average Collection efficiency is 99.7%) improving approximately 52 bps YoY.
  • Gross NPA declined to 1.6%, improving approximately 301 bps YoY, reflecting a significant improvement in asset quality.

Financial Performance Q2 FY27

Income Statement Highlights

  • Total income increased approximately 12% YoY to INR 486 Cr.
  • Net Interest Income (NII) grew approximately 7% YoY to INR 265 Cr.
  • Pre-Provision Operating Profit (PPOP) grew approximately 40% YoY to INR 125 Cr.
  • Credit cost declined approximately 65% YoY to INR 39 Cr, supporting a significant improvement in profitability.
  • PAT increased to INR 86 Cr, registering 39% QoQ growth.

Key Ratios and Metrics

  • Cost-to-Income Ratio improved to 62.7%, reflecting an improvement of approximately 746 bps YoY.
  • Net Interest Margin (NIM) improved to 12.5%, expanding approximately 167 bps YoY, led by both yield expansion and a reduction in the cost of borrowing.
  • Marginal Cost of Borrowing declined approximately 281 bps YoY to 9.4%.
  • Annualised ROA and ROE improved to approximately 4.0% and approximately 13.5%, respectively, demonstrating a strong profitability turnaround.
  • CRAR remained healthy at 36.75%.

Management Commentary

Sanjay Garyali, MD & CEO, Fusion Finance Limited, commented: "Our Q2 FY27 performance reflects the progress we have made in strengthening Fusion's operating fundamentals. With an annualised ROA of approximately 4%, gross NPA improving to 1.6%, and collection efficiency at 99.7%, we are seeing the benefits of sustained portfolio discipline, operating efficiency and improved profitability.

With the turnaround evident in our operating and financial performance, Fusion is now set to enter its next phase of growth. Our focus is on building a more diversified, productive and resilient franchise, supported by disciplined underwriting, technology investments and a sustained emphasis on profitable growth.

While we remain mindful of the evolving operating environment, we expect growth momentum to improve in Q3 and remain committed to our medium-term AUM growth ambition of 20–25%. Our priority remains clear: to accelerate growth responsibly while preserving portfolio quality and delivering sustainable returns."

Company Background

Fusion Finance Limited [BSE: 543652 | NSE: FUSION], founded in 2010, is among India's leading Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs), touching the lives of approximately 19.3 lakh clients in the country. The company has an extensive network of 1,475 branches spread across 22 states and Union Territories, including 3 Union Territories, as of September 30, 2026.