Fusion Finance Limited has reported a return to profitability in the third quarter of FY26, posting a profit after tax of Rs 14 crore compared to a loss of Rs 22 crore in the previous quarter, driven by improved portfolio quality, disciplined execution and stronger collections.
In its outcome of Board Meeting dated February 6, 2026, the company announced that total loan disbursements rose 23 per cent quarter-on-quarter to Rs 1,594 crore in Q3 FY26, marking the highest level recorded in the last five quarters.
The improvement in profitability includes a one-time impact of Rs 6.91 crore arising from the implementation of the new labour code.
Asset under management stood at Rs 6,876 crore as of December 2025, while the active borrower base reached approximately 23.4 lakh clients.
The company operates through 1,537 branches across 22 states, including three Union Territories, with collection efficiency touching its highest level in the last six quarters.
Margins improved during the quarter, with Net Interest Margin increasing to 11.32 per cent from 10.85 per cent in Q2 FY26, supported by a reduction in cost of funds to 10.28 per cent from 10.35 per cent.
Pre-provision operating profit rose to Rs 94 crore from Rs 89 crore in the previous quarter, while credit cost declined to Rs 79 crore from Rs 111 crore. Gross NPA improved to 4.38 per cent from 4.61 per cent, with Net NPA at 0.63 per cent and Stage 3 provision coverage sustained at around 86 per cent
The balance sheet remained robust, with Capital to Risk-Weighted Assets Ratio at 38.80 per cent, supported by the recently completed Rights Issue. Liquidity stood at Rs 1,783 crore, comprising cash, cash equivalents and liquid assets, amounting to 23.01 per cent of total assets.
The Board also approved the appointment of Brahmanand Hegde as an Additional Non-Executive Independent Director for a period of five consecutive years, subject to shareholder approval.
A seasoned finance professional with over 30 years of experience in microfinance, rural banking and financial inclusion, Hegde is a founder and key promoter of Vistaar Finance and has previously held leadership roles at Fullerton India and ICICI Bank
The unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by the Statutory Auditors, B. K. Khare & Co.
The company stated that its Q3 FY26 performance reflects continued balance sheet strengthening, margin expansion and a return to profitability, positioning it for the next phase of calibrated growth.
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