Fusion Finance Reports Strong Q1 FY27 Performance; PBT rises 67% QoQ to INR 62 Crore; Disbursement Growth 88% YoY
New Delhi : Fusion Finance Limited [BSE: 543652 | NSE: FUSION] today announced its financial results for the first quarter ended June 30, 2026, delivering another quarter of strong business and financial performance.
Profit Before Tax (PBT) increased 67% quarter-on-quarter to INR 62 crore in Q1 FY27 from INR 37 crore in Q4 FY26. Building on the foundation laid during FY26, the Company reported improvement across business growth, margins, asset quality and profitability, reflecting the effectiveness of its calibrated underwriting approach, strengthened risk framework and disciplined execution.
Our NIM for Q1 FY27 has improved to 11.93%, compared with 10.29% in Q1 FY26 and 11.44% in Q4 FY 26.
Our pre-provisioning operating profit stood at INR 102 crore in Q1 FY27, an increase of 18% from INR 87 crore in Q1 FY26 and increase of 10% from INR 93 crore in Q4 FY26. This demonstrates the underlying earnings strength of the franchise and reflects the tangible benefits of the operating efficiencies we have systematically built over the last year.
Asset quality strengthened further with Gross NPA improving to 2.51% from 3.21% in Q4 FY26, while credit cost declined to INR 40 crore, achieving the seventh consecutive quarter of reduction.
Commenting on the performance, Mr. Sanjay Garyali, MD & CEO, Fusion Finance Limited, said: “Q1 FY27 reflects the strength of the foundation we built over the past year. The simultaneous improvement in profitability, asset quality and growth validates our disciplined approach to underwriting, risk management and execution. As customer leverage continues to moderate and our capital position remains strong, we are well placed to scale responsibly. Going forward, we will remain focused on technology-led operating efficiency, prudent portfolio expansion and creating sustainable long-term value for all our stakeholders.”
Fusion Finance maintained a strong balance sheet with a CRAR of 36.95% and liquidity of INR 1,880 crore. The Company’s marginal cost of borrowing declined ~246 bps YoY to 10.1%, while maintaining a healthy debt-to-equity ratio of 2.3x.
Technology-led initiatives continued with the beginning of enterprise-wide rollout of the Loan Management System in a phased manner and deployment of AI-enabled capabilities, driving stronger compliance, lower cost-to-serve, reduced operational fraud, and fully digital customer onboarding.
Q1 FY27 marks Fusion Finance’s transition from stabilization to sustainable growth, with continued improvement across profitability, portfolio quality, capital strength and operating efficiency positioning the Company for disciplined expansion.
Financial Snapshot: (₹ In cr)
| Particulars | Q1 FY27 | Q4 FY26 | QoQ | Q1 FY26 | YoY |
| Disbursement | 1,783 | 2,140 | (17%) | 950 | 88% |
| AUM | 7,702 | 7,407 | 4% | 7,688 | 0.2% |
| AUM per Branch | 5.1 | 4.8 | 6% | 4.9 | 3% |
| Total Income | 458 | 430 | 7% | 446 | 3% |
| OPEX | 206 | 205 | 1% | 210 | (2%) |
| Pre-Provision Operating Profit (PPOP) | 102 | 93 | 10% | 87 | 18% |
| Credit Cost | 40 | 56 | (29%) | 179 | (78%) |
| Profit Before Tax | 62 | 37 | 67% | (92) | n.m. |
| Net worth | 2,521 | 2,456 | 3% | 1,943 | 30% |
| EPS (Basic) (₹) | 3.86 | 7.06 | – | (7.44) | – |
| EPS (Diluted) (₹) | 3.85 | 7.06 | – | (7.44) | – |
Key Ratios : Q1 FY27
| Key Ratios | Q1 FY27 | Q4 FY26 | QoQ (Bps) | Q1 FY26 | YoY (Bps) |
| Net Interest Margin (NIM) | 11.9% | 11.4% | 49 | 10.3% | 164 |
| Marginal Cost of Borrowing | 10.1% | 10.3% | (20) | 12.6% | (246) |
| Collection Efficiency (MFI) | 99.8% | 99.7% | 10 | 98.7% | 108 |
| Cost/Income Ratio | 66.9% | 68.8% | (188) | 70.8% | (391) |
| D/E | 2.3 | 2.3 | – | 2.7 | – |
| CRAR | 36.9% | 36.5% | 49 | 29.5% | 743 |
| Gross NPA (as at) | 2.5% | 3.2% | (70) | 5.4% | (292) |
| Return on Assets (ROA) (Annualized) | 3.0% | 1.9%* | 108 | (4.7%) | n.m. |
| Return on Equity (ROE) (Annualized) | 10.0% | 6.3%* | 378 | (20.6%) | n.m. |
