Fusion Finance’s Loss After Tax At Rs92 Cr in Q1 FY26

The NBFC-MFI’s Q1FY26 results show AUM at INR 7,688 Crore

Devesh Sachdev, Managing Director, Fusion Finance

FinTech BizNews Service 

Mumbai, August 8, 2025: Fusion Finance Limited (formerly Fusion Micro Finance Limited) [BSE (BOM: 543652) and NSE (NSE: FUSION)], today announced its unaudited and limited reviewed financial performance for the quarter ended June 30, 2025.

Business Highlights Q1 FY26

·         AUM stands at INR 7,688 crore as on June 2025

·         Total loan disbursements stood at INR 950 crore in Q1 FY26

·         Active borrower base stood at ~28.5 lakh as of June 2025

·         1,560 branches across 22 states including 3 Union Territories

Financial Highlights: Q1 FY26

·         Total income stood at INR 446 crore in Q1 FY26 vs INR 476 crore in Q4 FY25

·         Net interest income (NII) for Q1 FY26 stable at INR 268 crore vs Q4 FY25

·         Net Interest Margin (NIM) increased to 10.29% in Q1 FY26 vs 8.57% in Q4 FY25

·         Cost of funds reduced to 10.27% in Q1 FY26 vs 10.52% in Q4 FY25

·         Pre-provision Operating Profit stood at INR 87 crore in Q1 FY26 vs INR 90 crore in Q4 FY25

·         Loss after tax stood at INR 92 crore in Q1 FY26

·         Sustained Stage 3 provision coverage to ~97% in Q1 FY26

·         Credit cost stood at INR 178 crore in Q1 FY26

·         Gross NPA was 5.43% in Q1 FY26 and Net NPA at 0.19%

·         Healthy capital adequacy position with CRAR of 29.52 % (post equity infusion)

·         Robust liquidity of INR 724 crore aggregate of cash and cash equivalents and liquid assets, amounting to 9.76% of the total assets

According to Mr. Devesh Sachdev, Managing Director, Fusion Finance Limited, “In Q1 FY26, we continued to make progress, moving closer to normalcy. Our strong measures and persistent efforts on the ground have helped us overcome the external and operational hurdles, setting us on a path to recovery. The renewed focus on credit quality and discipline across the sector along with favourable regulatory step of lowering qualifying assets threshold to 60% from 75% will help in ensuring sustainability and future growth.”

Sharing his views, Mr. Sanjay Garyali, Chief Executive Officer, Fusion Finance Limited, said, “We continue to witness improvements in key business and financial parameters including collection efficiencies, credit costs and GNPA. As we step into the next phase, our focus remains on driving sustainable growth with strong credit checks, tech-led underwriting, and deeper customer engagement. To deepen our relationship with our customers, we have launched differentiated products like Ujala and Sugam loans and are coming up with new products for MSME segment too. We are well-prepared for the future. We will continue to grow thoughtfully across emerging rural and MSME markets, backed by a strong balance sheet and a culture built on trust and strong execution.”

Financial Snapshot: Q1 FY26

           (Rs In cr)

Key Metrics: Q1 FY26                                                                                                                                                    (Rs In cr)