Fusion Finance Limited has announced its financial results for the quarter and half year ended September 30, 2026, reporting growth in its assets under management (AUM), disbursements, operating profit and profitability, alongside an improvement in asset quality.
The company’s AUM grew around 14 per cent year-on-year to Rs 8,007 crore, while disbursements increased around 33 per cent to Rs 1,726 crore. Fusion Finance also increased the MSME loan ticket size from Rs 25 lakh to up to Rs 50 lakh, enabling it to serve more established small businesses.
Branch productivity improved around 19 per cent year-on-year, with AUM per branch reaching Rs 5.4 crore. Average net collection efficiency stood at 99.84 per cent, while gross average collection efficiency was 99.7 per cent, with the average net collection efficiency improving around 52 basis points year-on-year.
The company’s gross NPA declined to 1.6 per cent, improving around 301 basis points year-on-year. Fusion Finance reported total income of Rs 486 crore, up around 12 per cent year-on-year, while net interest income increased around 7 per cent to Rs 265 crore.
Pre-Provision Operating Profit grew around 40 per cent year-on-year to Rs 125 crore. Credit cost declined around 65 per cent to Rs 39 crore, supporting the improvement in profitability. Profit after tax increased to Rs 86 crore, registering 39 per cent growth quarter-on-quarter.
The cost-to-income ratio improved to 62.7 per cent, an improvement of around 746 basis points year-on-year. Net interest margin increased to 12.5 per cent, expanding around 167 basis points year-on-year, supported by yield expansion and a reduction in the cost of borrowing. Marginal cost of borrowing declined around 281 basis points year-on-year to 9.4 per cent.
Annualised return on assets and return on equity improved to around 4 per cent and 13.5 per cent, respectively. The company’s capital adequacy ratio remained at 36.75 per cent.
Commenting on the results, Sanjay Garyali, MD & CEO, Fusion Finance Limited, said, “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.”
Send news announcements/press releases to:
jeevika@thefoundermedia.in
