The NBFC-MFI Reports 37% QoQ Growth in Disbursements in Q2 FY26
FinTech BizNews Service
Mumbai, November 4, 2025: Fusion Finance Limited (formerly Fusion Micro Finance Limited) [BSE (BOM: 543652) and NSE (NSE: FUSION)], today announced its unaudited and limited review financial performance for the quarter and half year ended September 30, 2025.
Business Highlights Q2 FY26
· AUM stood at INR 7,038 crore as on September 2025
· Total loan disbursements stood at INR 1,298 crore in Q2 FY26; increased by 37% QoQ
· Active borrower base stood at 25.8 lakh as of September 2025
· 1,545 branches across 22 states including 3 Union Territories
Financial Highlights: Q2 FY26
· Total income stood at INR 433 crore in Q2 FY26 vs INR 446 crore in Q1 FY26
· Net interest income (NII) for Q2 FY26 stable at INR 243 crore vs Rs. 268 crore in Q1 FY26
· Net Interest Margin (NIM) increased to 10.85% in Q2 FY26 vs 10.29% in Q1 FY26
· Cost of funds stood at 10.35% in Q2 FY26 vs 10.27% in Q1 FY26
· Pre-provision Operating Profit stood at INR 89 crore in Q2 FY26 vs INR 87 crore in Q1 FY26
· Loss after tax stood at INR 22 crore in Q2 FY26 vs loss after tax of INR 92 crore in Q1 FY26
· Sustained Stage 3 provision coverage to ~92% in Q2 FY26
· Credit cost stood at INR 111 crore in Q2 FY26 vs INR 178 crore in Q1 FY26
· Gross NPA further declined to 4.61% in Q2 FY26 from 5.43% in Q1 FY26; and Net NPA stood at 0.38%
· Healthy capital adequacy position with CRAR of 31.31%
· Robust liquidity of INR 892 crore aggregate of cash and cash equivalents and liquid assets, amounting to 12.58% of the total assets
Sharing his views, Mr. Sanjay Garyali, MD & CEO, Fusion Finance Limited, said, “Our path to recovery continues, reflected in the sharp reduction in losses, growth in disbursements, and consistent improvement in collection efficiency, credit costs, and GNPA levels. These outcomes demonstrate the strength of our disciplined underwriting practices, tighter operational guardrails, and tech-led processes.
We remain focused on driving sustainable growth while maintaining prudent risk management. With overall collection efficiency now at 98.5% and that of the new book at 99.5%, we are building a stronger, more resilient portfolio. In line with our commitment to enhance customer experience, we have made our onboarding process completely paperless. Additionally, with the recent IRDAI approval to operate as a Corporate Insurance Agent, we are now better positioned to offer comprehensive financial solutions beyond lending. Going forward, we aim to grow responsibly across emerging rural and MSME markets.”
Financial Snapshot: Q2 FY26 (₹ In cr)
Particulars | Q2 FY26 | Q1 FY26 | QoQ | Q2 FY25 | YoY | H1 FY26 | H1 FY25 | YoY% |
Interest Income | 380.80 | 421.89 | (9.74%) | 626.08 | (39.18%) | 802.69 | 1,247,36 | (35.65%) |
Total Income | 432.69 | 445.57 | (2.89%) | 703.71 | (38.51%) | 878.26 | 1,410.39 | (37.73%) |
Finance Cost | 134.27 | 148.89 | (9.82%) | 227.36 | (40.94%) | 283.16 | 450.77 | (37.18%) |
Profit/(loss) Before Tax | (22.14) | (92.25) |
| (410.21) |
| (114.39) | (460.93) |
|
Profit/(loss) After Tax | (22.14) | (92.25) |
| (305.04) |
| (114.39) | (340.66) |
|
EPS (Basic) (₹) | (1.69) | (7.44) |
| (27.75) |
| (8.97) | (31.00) |
|
EPS (Diluted) (₹) | (1.69) | (7.44) |
| (27.75) |
| (8.97) | (31.00) |
|
Key Metrics: Q2 FY26 (₹ In cr)
Particulars | Q2 FY26 | Q1 FY26 | QoQ | Q2 FY25 | YoY | H1 FY26 | H1 FY25 | YoY% |
AUM | 7,038.06 | 7,687.60 | (8.45%) | 11,571.15 | (39.18%) | 7,038.06 | 11,571.15 | (39.18%) |
Borrowers | 0.258 | 0.285 | (9.47%) | 0.385 | (32.99%) | 0.258 | 0.385 | (32.99%) |
Number of Branches | 1,545 | 1,560 | (0.96%) | 1,463 | 5.60% | 1545 | 1,463 | 5.60% |
Net Interest Income (NII) | 243.12 | 267.96 | (9.27%) | 397.29 | (38.81%) | 511.08 | 793.84 | (35.62%) |
Pre-Provision Operating Profit (PPOP) | 89.01 | 86.61 | 2.77% | 283.84 | (68.64%) | 175.62 | 581.59 | (69.80%) |
Key Ratios | Q2 FY26 | Q1 FY26 | QoQ | Q2 FY25 | YoY | H1 FY26 | H1 FY25 | YoY% |
Net Interest Margin (NIM) | 10.85% | 10.29% | 5.44% | 11.48% | (5.49%) | 10.51% | 11.55% | (9.00%) |
Cost/Income Ratio | 70.17% | 70.81% | (0.90%) | 40.41% | 73.65% | 70.49% | 39.39% | 78.95% |
Opex/Average AUM | 11.38% | 10.08% | 12.90% | 6.48% | 75.62% | 10.48% | 6.56% | 59.76% |
Gross NPA | 4.61% | 5.43% | (15.10%) | 9.41% | (51.01%) | 4.61% | 9.41% | (51.01%) |
Expected Credit Loss (ECL) | 444.16 | 579.08 | (23.30%) | 1,140.62 | (61.06%) | 444.16 | 1,140.62 | (61.06%) |
Return on Assets (ROA) (Annualised) | (1.22%) | (4.70%) |
| (10.28%) |
| (2.97%) | (5.86%) |
|
Return on Equity (ROE) (Annualised) | (4.59%) | (20.58%) |
| (45.69%) |
| (12.85%) | (25.37%) |
|
