Fusion Finance Reports Strong Q1 FY27 Performance; Profit Before Tax Rises 67% QoQ to INR 62 Crore
New Delhi, August 10, 2026: Fusion Finance Limited announced robust financial results for the first quarter of fiscal year 2027 (Q1 FY27), reporting significant improvements in profitability, asset quality, and operational efficiency. Profit Before Tax (PBT) increased by 67% quarter-on-quarter (QoQ), reaching INR 62 crore from INR 37 crore in Q4 FY26.The company's Net Interest Margin (NIM) expanded to 11.93%, up from 10.29% in Q1 FY26 and 11.44% in Q4 FY26. Pre-provisioning operating profit (PPOP) for Q1 FY27 stood at INR 102 crore, marking an increase of 18% from INR 87 crore in Q1 FY26 and 10% from INR 93 crore in Q4 FY26.
Asset quality demonstrated marked strengthening. Gross Non-Performing Assets (NPA) improved to 2.51%, down from 3.21% in Q4 FY26, while the credit cost declined to INR 40 crore, achieving a reduction for the seventh consecutive quarter. Fusion Finance maintained a strong balance sheet with a Capital to Risk Weighted Assets Ratio (CRAR) of 36.95% and liquidity reserves amounting to INR 1,880 crore. The marginal cost of borrowing also declined by approximately 246 basis points (bps) year-on-year (YoY), settling at 10.1%.
"Q1 FY27 reflects the strength of the foundation we built over the past year," Mr. Sanjay Garyali, MD and CEO of Fusion Finance Limited, commented. "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."
The company is advancing its operational capabilities with the enterprise-wide rollout of the Loan Management System in a phased manner and deploying AI enabled capabilities across processes. These initiatives aim to drive stronger compliance, reduce operational fraud, lower costs to serve, and ensure fully digital customer onboarding. Q1 FY27 signifies Fusion Finance’s shift from stabilization toward sustainable growth, underpinned by continuous improvements in profitability, portfolio quality, capital strength, and operating efficiency.
Financial Highlights and Key Ratios (Q1 FY27)
The financial performance of Fusion Finance Limited across key metrics is detailed below:| Particulars (₹ In cr) | Q1 FY27 | Q4 FY26 | QoQ % Change | Q1 FY26 | YoY % Change |
|---|---|---|---|---|---|
| Disbursement | 1,783 | 2,140 | (17%) | 950 | 88% |
| AUM | 7,702 | 7,407 | 4% | 7,688 | 0.2% |
| Total Income | 458 | 430 | 7% | 446 | 3% |
| 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. |
Key Performance Ratios for Q1 FY27:
The operational efficiency and financial health of the company were highlighted in these ratios:
| Key Ratios | Q1 FY27 | Q4 FY26 | QoQ Change (Bps) | Q1 FY26 | YoY Change (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) |
| Gross NPA (as at) | 2.5% | 3.2% | (70) | 5.4% | (292) |
| Cost/Income Ratio | 66.9% | 68.8% | (188) | 70.8% | (391) |
| CRAR | 36.9% | 36.5% | 49 | 29.5% | 743 |
About Fusion Finance Limited
Founded in 2010, Fusion Finance is one of India's leading Non Banking Financial Company Microfinance Institutions (NBFC-MFIs). The company operates with a commitment to robust business practices and transparent policies, focusing on creating opportunities for underserved women entrepreneurs. As of June 30, 2026, the organization has an Asset Under Management (AUM) of INR 7,702 crore and maintains a network of 1,512 branches across 22 states and three Union Territories.FUSION Stock Price Movement
Today, Fusion Finance Limited shares gained 0.59%, closing at ₹206.16 after trading finished today. The security saw 676,360 shares change hands during the session, finishing within a day range bounded by ₹202.21 and ₹214.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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