PAT Rises 39% QoQ to INR 86 Cr | ROA Reaches 4% | GNPA Improves to 1.6%
FinTech BizNews Service
Mumbai, 02 November, 2026: Fusion Finance Limited [BSE: 543652 | NSE: FUSION] today announced its financial results for the quarter and half year ended September 30, 2026.
Business Highlights Q2 FY27
· AUM grew 14% YoY to INR 8,007 Cr, supported by sustained portfolio expansion.
· Disbursements increased ~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 ~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 ~52bps YoY.
· Gross NPA declined to 1.6%, improving 301 bps YoY, reflecting a significant improvement in asset quality.
Financial Highlights Q2 FY27
· Total income increased ~12% YoY to INR 486 Cr.
· Net Interest Income (NII) grew ~7% YoY to INR 265 Cr.
· Pre-Provision Operating Profit (PPOP) grew ~40% YoY to INR 125 Cr.
· Credit cost declined ~65% YoY to INR 39 Cr, supporting a significant improvement in profitability.
· PAT increased to INR 86 Cr, registering 39% QoQ growth.
· Cost-to-Income Ratio improved to 62.7%, reflecting an improvement of ~746 bps YoY.
· Net Interest Margin (NIM) improved to 12.5%, expanding ~167 bps YoY, led by both yield expansion and a reduction in the cost of borrowing.
· Marginal Cost of Borrowing declined ~281 bps YoY to 9.4%.
· Annualised ROA and ROE improved to ~4.0% and ~13.5%, respectively, demonstrating a strong profitability turnaround.
· CRAR remained healthy at 36.75%.
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.”
