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View Promises →Fusion Finance Limited — Q4 FY26
Fusion Finance reported Q4 FY26 PAT of ₹114.19 crore (including a one-time DTA of ₹76.8 crore; core PAT was ₹37.5 crore).
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Fusion Finance reported Q4 FY26 PAT of ₹114.19 crore (including a one-time DTA of ₹76.8 crore; core PAT was ₹37.5 crore). AUM grew to ₹7,400 crore from ₹6,800 crore sequentially, driven by disbursements of ₹2,140 crore (up 34% QoQ). Credit cost fell to ₹56 crore from ₹80 crore QoQ, with gross NPA improving to 3.21% from 4.38%. Management reiterated the ₹10,000 crore AUM target by March 2027, supported by strong collection efficiency (99.75% in core states) and a branch-level operating framework. Risks include potential inflationary pressures from geopolitical tensions and the need to manage operating expenses while scaling.
फ्यूजन फाइनेंस ने चौथी तिमाही में ₹114.19 करोड़ का मुनाफा कमाया। इसमें ₹76.8 करोड़ का एक बार का टैक्स लाभ शामिल है, असली मुनाफा ₹37.5 करोड़ रहा। कंपनी का कुल लोन पोर्टफोलियो ₹6,800 करोड़ से बढ़कर ₹7,400 करोड़ हो गया। उसने ₹2,140 करोड़ के नए लोन दिए, जो पिछली तिमाही से 34% ज्यादा है। खराब लोन का अनुपात 4.38% से घटकर 3.21% रह गया। कंपनी का लक्ष्य मार्च 2027 तक ₹10,000 करोड़ का पोर्टफोलियो हासिल करना है। वसूली दर 99.75% है। जोखिमों में महंगाई और खर्चों पर नियंत्रण शामिल है।
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Geopolitical and inflationary headwinds
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Disbursements
₹2,140 crore
+34% QoQ
Disbursements in Q4 FY26 grew to ₹2,140 crore from ₹1,594 crore in Q3, driven by improved customer selection and automation.
Gross NPA
3.21%
-117bps QoQ
Gross NPA improved from 4.38% in Q3 to 3.21% in Q4, reflecting better asset quality and recovery efforts.
Collection Efficiency (MFI)
99.7%
+20bps QoQ
MFI collection efficiency improved to 99.7% in Q4 from 99.5% in Q3, driven by AI-led collections and field discipline.
New Borrower Mix
37%
+2pp QoQ
New-to-Fusion borrowers comprised 37% of MFI disbursements in Q4, up from 35% in Q3, with focus on low-leverage customers.
What Changed vs Last Quarter
NEW
OPEX growth capped at 4-5% in FY27
Total operating expenses for FY26 were ₹832 crore; management expects FY27 OPEX to increase by only 4-5% through rationalization initiatives.
NEW
New LMS migration by end of August 2026
The company is migrating to an advanced loan management system, with UAT started in May 2026 and full rollout expected by August 2026.
UPDATED
AUM target of ₹10,000 crore by March 2027
Management reiterated the aspiration to reach ₹10,000 crore AUM by March 2027, supported by calibrated growth and branch-level execution.
UPDATED
Credit cost guidance of 2.5-3% for FY27
Management guided for a stable-state credit cost of 2.5-3% in FY27, with internal modeling trending towards 2.5% including MSME portfolio.
DROPPED
Quarterly recoveries target of ₹50 crore
Targeting ₹50 crore per quarter in recoveries from the 60+ DPD pool, with ₹200 crore expected over the next four quarters.
DROPPED
MSME book to double to ~₹1,500 crore
MSME AUM expected to grow from ~₹700 crore to ~₹1,500 crore, representing 15% of total AUM, with secured lending at 55% LTV.
NEW RISK
Geopolitical and inflationary headwinds
Management acknowledged risks from West Asia tensions, energy price volatility, and potential inflation, which could impact the broader financial system.
NEW RISK
PSU bank lending lines may not reopen quickly
An analyst questioned whether PSU banks would resume lending after the company's return to profitability; management was hopeful but noted applications are still under process.
NEW RISK
Credit rating upgrade uncertainty
Management noted that two rating agencies are awaiting annual results and geopolitical developments before considering upgrades, which could affect borrowing costs.
NEW RISK
Bihar regulation impact on portfolio
An analyst raised concerns about Bihar's new MFI regulation; management downplayed the impact, citing strong collection efficiency, but the risk remains if regulations tighten further.
RISK GONE
Over-leverage in MFI portfolio
Despite improvement, 7% of customers still have exposure to more than 3 lenders, posing risk if industry stress re-emerges.
RISK GONE
Execution risk in MSME scaling
MSME book is set to double; any underwriting slippage or collateral valuation issues could impact asset quality.
RISK GONE
DTA recognition timing uncertainty
Management was non-committal on when the ₹380-400 crore DTA would be recognized, deferring to 'due course'.
RISK GONE
High operating cost structure
Cost-to-income ratio at 69% remains elevated; management expects gradual improvement but no specific timeline.
Fast read
Guidance and risk preview
Management reiterated the aspiration to reach ₹10,000 crore AUM by March 2027, supported by calibrated growth and branch-level execution.
Management acknowledged risks from West Asia tensions, energy price volatility, and potential inflation, which could impact the broader financial s...
View Risks →