Fusion Finance Ltd(FUSION)

NSE: FUSIONBSE: 543652

₹ 139.05-0.11%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,265 crWebsite: www.fusionfin.comUpdated: 24 Oct 2026

About

Fusion Finance Limited is a Gurgaon-headquartered NBFC-MFI, listed on BSE and NSE since 2022, that lends to rural women through Joint Liability Groups and to small businesses through a secured MSME vertical launched in 2019. As of Q1 FY27 the combined AUM stood at approximately ₹7,702 Cr, with full-year FY26 revenue of ₹1,698.53 Cr. The company is recovering from a sector-wide stress cycle, with disbursements up 88% year-on-year in Q1 FY27 and seven consecutive quarters of declining credit cost.^[1][2][3]

Business segments

MFI vertical: Joint Liability Group loans to rural women, the core business, operating through 1,466 microfinance branches as of FY25. MFI AUM was ₹8,307 Cr in FY25, down from ₹10,946 Cr in FY24 due to sector stress.^[1]
MSME vertical: secured loans to the 'missing middle' small-business segment, launched in 2019. MSME AUM reached approximately ₹800 Cr in Q1 FY27 across 90 dedicated branches in 8 states, disbursing ~₹50 Cr per month.^[1][2]

Products and services

Core MFI product is a Grameen-model JLG loan for rural women. Fusion launched 'UJALA' in FY25, a product for customers with strong repayment history, targeting better-quality existing borrowers.^[1]
Individual loan product launched August 10, 2026, targeting existing MFI customers with 3+ years of business vintage and an established repayment track record; average ticket size ~₹1.5 lakh, credit evaluated by the MSME team via ~250 PQM branches.^[2]
MSME segment offers a Rooftop Solar Finance initiative under the Solar Energy Asset Finance Program; as of March 31, 2025, it had 1,368 active loan accounts with a portfolio outstanding of ₹53.14 Cr.^[1]
IRDAI corporate agency licence approved October 2025, enabling Fusion to distribute insurance products to its microfinance customer base as a fee income channel.^[4]

Operations and network

MFI network stood at 1,466 branches as of FY25 (169 added during the year). Plan to open ~50 - 60 new MFI branches while rationalising ~100 by Q3 FY27, resulting in a net reduction of 40 - 50 branches.^[1][2]
MSME vertical operates across 8 states - Uttar Pradesh, Bihar, Rajasthan, Gujarat, Haryana, Delhi, Jharkhand and Madhya Pradesh - supported by 90 dedicated branches and 580 field officers as of March 2025.^[1][5]
Core MFI lending system is 'Shakti', comprising webShakti (browser-based for branches) and mShakti (mobile for field officers), on cloud infrastructure adopted as early as 2013. MSME uses the in-house FinDost LOS/LMS platform launched in FY25.^[1]
Active MFI client base was 32.1 lakh in FY25, down from 38.6 lakh in FY24; 100% of MFI clients are women in rural and peri-urban areas.^[1]

Key operating numbers

Group AUM: ₹7,702 Cr in Q1 FY27, up 4% QoQ from ₹7,407 Cr in Q4 FY26 and essentially flat YoY (₹7,688 Cr in Q1 FY26).^[2]
Disbursements: ₹1,783 Cr in Q1 FY27, up 88% YoY. Q4 FY26 disbursements were ₹2,140 Cr, up 85% YoY, with the March 2026 monthly run-rate reaching ₹725 Cr.^[2][5]
NIM: 11.93% in Q1 FY27, up 49 bps QoQ from 11.44% in Q4 FY26 and up 164 bps YoY from 10.29%. Average cost of borrowing was 10.3% in Q1 FY27; marginal cost fell 250 bps YoY to 10.1%.^[2]
GNPA (Stage III): 2.51% in Q1 FY27, improved from 3.21% in Q4 FY26 and 4.38% in Q3 FY26. NNPA (Net Stage III): 0.47% in Q1 FY27.^[2][5]
Credit cost (% of average on-book portfolio): 0.6% (non-annualised) in Q1 FY27, the seventh consecutive quarter of decline, down from 0.9% in Q4 FY26 and 2.9% in Q4 FY25.^[2][5]
MFI average collection efficiency: 99.76% in Q1 FY27, up 10 bps QoQ. Net forward flow rate (current to PAR): 0.08% in Q1 FY27.^[2]
CRAR: 36.95% in Q1 FY27 (up 49 bps QoQ); debt-to-equity 2.3x. CARE reaffirmed 'A' rating and upgraded outlook to Stable in Q4 FY26.^[2][5]

Customers and distribution

Total active MFI clients were 32.1 lakh in FY25 (down from 38.6 lakh in FY24); 100% women in rural and peri-rural areas. Borrowers with ≥3 MFI lenders fell to 6.8% of portfolio in June 2026, from 18.1% in March 2025.^[1][2]
MSME total loan accounts: 13,947 as of FY25, reflecting 62.28% YoY growth; 7,661 new customers added in FY25. 100% of MSME customers are in the Priority Sector Lending (PSL) category and are Udyam-registered.^[1]
New-to-Fusion (NTF) borrowers as a share of Q1 FY27 disbursements rose from 37% in the quarter to ~39% in June and ~42% in July 2026, signalling improving new customer demand.^[2]

Expansion and new initiatives

MSME hub-and-spoke expansion: 200 existing MFI branches in MSME catchment areas identified; 50 activated in Q2 FY27. Tamil Nadu entered for MSME for the first time. Target: MSME to reach 15% of group AUM in FY28 and 20% in FY29.^[2]
Individual loan product launched August 10, 2026, targeting ~10% of MFI disbursements over time; managed via ~250 PQM branches with MSME credit oversight.^[2]
CGFMU (borrower credit guarantee scheme) pilot planned in 2 - 3 identified markets by end of Q2 FY27, targeted at less than 5% of fresh disbursements.^[2]
AUM target of ₹10,000 Cr by end of FY27 reaffirmed; medium-term AUM CAGR target of 20 - 25% across MFI and MSME combined through FY29.^[2]
Capital raise roadshow planned for mid-FY28; current CRAR of 36.95% as of Q1 FY27 is considered adequate for approximately two years of growth.^[2]

Recent developments

August 10, 2026: Board-approved individual loan product launched targeting existing MFI customers; average ticket ~₹1.5 lakh with 3-year business vintage requirement.^[2]
Hard-bucket (60+ DPD) collections fully in-housed from Q1 FY27, previously ~30% handled by external agencies. Quarterly 60+ DPD cash recovery exceeded ₹35 Cr, with an additional ₹21 Cr from the written-off portfolio.^[2]
Written-off book stands at ~₹600 Cr; management estimates ~₹180 Cr recoverable at a ~30% settlement rate over 15 - 18 months.^[2]
Fusion+2 guardrail (limiting new loans to borrowers with at most 2 total MFI lenders) eased back in category-A branches, representing ~80% of the network, following strong collection performance.^[2]
CARE reaffirmed 'A' rating for Fusion Finance in Q4 FY26 and upgraded the outlook to Stable, supported by CRAR of 36.46% and net worth of ₹2,456 Cr (+49% YoY) at that date.^[5]

Market Cap

₹2,265 Cr

High / Low

₹243 / 137

Stock P/E

14.1

Price / Book

1.0

Book Value

₹152

EPS

₹0.8

No. of Shares

16.21 Cr

ROE

0.7%

Debt / Equity

2.27

Sales

₹1,699 Cr

Net Profit

₹14 Cr

Promoter holding

51.8%

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