Fusion Finance543652Quarterly results

Q2 FY27 results: AUM up ~14% YoY, PAT rises 39% QoQ to INR 86 Cr, gross NPA improves to 1.6%

Fusion Finance Q2 FY27: AUM up ~14% YoY to INR 8,007 Cr and disbursements up ~33% to INR 1,726 Cr.

By ScoutQuest · Mon 2 Nov 2026, 5:41 PM IST · 2 min read

AUM: INR 8,007 Cr, up ~14% YoY
Disbursements: INR 1,726 Cr, up ~33% YoY
PAT: INR 86 Cr, up 39% QoQ

Results update

Fusion Finance Limited has released a press release on its financial results for the quarter and half year ended September 30, 2026. The release sets out business and financial highlights for Q2 FY27, along with a comment from the Managing Director & CEO.

Business highlights for the quarter

Assets under management (AUM) grew ~14% YoY to INR 8,007 Cr, which the release attributes to sustained portfolio expansion.
Disbursements increased ~33% YoY to INR 1,726 Cr.
The MSME loan ticket size was enhanced from INR 25 lakh up to INR 50 lakh, to serve more established small businesses.
Branch productivity improved ~19% YoY, with AUM per branch reaching INR 5.4 Cr.
Average net collection efficiency was 99.84%, and gross average collection efficiency 99.7%, improving ~52 bps YoY.
Gross NPA declined to 1.6%, an improvement of ~301 bps YoY.

Financial highlights for the quarter

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, while credit cost declined ~65% YoY to INR 39 Cr.
PAT stood at INR 86 Cr, a 39% QoQ increase.
Net Interest Margin (NIM) improved to 12.5%, expanding ~167 bps YoY, helped by yield expansion and a lower cost of borrowing.
Marginal Cost of Borrowing declined ~281 bps YoY to 9.4%.
Cost-to-Income Ratio improved to 62.7%, a gain of ~746 bps YoY.
Annualised ROA and ROE improved to ~4.0% and ~13.5% respectively.
CRAR remained at 36.75%.

How the release reads

The overall tone of the release is positive: margins expanded, credit cost fell and asset quality improved, and profit rose both year on year in percentage terms and 39% quarter on quarter. The CEO describes the quarter as reflecting strengthened operating fundamentals and a "profitability turnaround", and says the company is entering its next phase of growth.

Management comment

Sanjay Garyali, MD & CEO, said the Q2 FY27 performance reflects progress in strengthening operating fundamentals, with an annualised ROA of approximately 4%, gross NPA improving to 1.6% and collection efficiency at 99.7%. He added that the company remains mindful of the evolving operating environment, expects growth momentum to improve in Q3, and remains committed to its medium-term AUM growth ambition of 20–25%, while preserving portfolio quality.

About the company

Fusion Finance Limited [BSE: 543652 | NSE: FUSION], founded in 2010, is a Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) serving ~19.3 lakh clients, with AUM of INR 8,007 crores. As of September 30, 2026, it operated 1,475 branches across 22 states and Union Territories, including 3 Union Territories.

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