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Fusion Finance Ltd: Stock Analysis & Fundamentals

Updated this week

Fusion Finance Ltd (Finance & Investments - Microfinance) — fundamental analysis, earnings data, and key metrics. ROE: -54.5%. This stock is not currently in the Nifty 500 momentum outperformers list.

What's Happening

💪Debt reduced 23% YoY — balance sheet strengthening
👔Promoter stake down 2.8% this quarter
🌐FII stake increased 1.1% this quarter
🏛️DII reducing — stake down 7.3%

Earnings Acceleration Triggers

1. Return to profitability with improving asset quality
Q3 FY26HIGH
2. Disbursement growth acceleration
Q3 FY26MEDIUM
3. DTA recognition potential
Q4 FY26MEDIUM

Key Risks

1. High operating expenses limiting leverage
MEDIUM
2. DTA recognition timing uncertainty
MEDIUM

Key Numbers

Current Price
₹141
Market Cap
2.3K Cr
Valuation
N/A

Why Are Fusion Finance Ltd's Earnings Accelerating?

Based on Q3 FY26 earnings • Updated Feb 22, 2026

Return to profitability with improving asset quality

Expected: Q3 FY26HIGH confidence+₹14 Cr revenue

What: Third consecutive quarter of asset quality improvement leading to ₹14 cr PAT in Q3 FY26

Impact: +₹14 Cr revenue

“Q3 FY26 earnings call transcript: "Q3 represents an important inflection point for Fusion. The business has now entered a phase of controlled stabilization and disciplined execution. I am pleased to share that we have returned to profitability this quarter delivering a PAT of 14 crores."”

Disbursement growth acceleration

Expected: Q3 FY26MEDIUM confidence+₹300 Cr revenue

What: 23% sequential growth in disbursements to ₹1,594 cr driven by operational improvements

Impact: +₹300 Cr revenue

“Q3 FY26 earnings call transcript: "Q3 disbursements stood at 1594 cr up from 1298 cr in the previous quarter. This growth was driven by two focused initiatives. First, reducing operational friction for our front-end teams. And second, leveraging a pre-approved base of high-quality customers."”

DTA recognition potential

Expected: Q4 FY26MEDIUM confidence

What: Potential ₹2,400 cr capital boost from DTA recognition in Q4 FY26

“Q3 FY26 earnings call transcript: "Like I said, I don't. We should not see this as real growth because we did not cut down on branches. We did not cut down on people. And I'll just give you a number. We did 670 crores out of which about 35 crores is MSME. 630 crore is MFI."”

What Are the Key Risks for Fusion Finance Ltd?

Earnings deceleration risks from management commentary

High operating expenses limiting leverage

MEDIUM

Trigger: If disbursement growth slows while expenses remain high

Management view: We did not cut down on branches. We did not cut down on people. And I'll just give you a number. We did 670 crores out of which about 35 crores is MSME. 630 crore is MFI.

Monitor: Cost-to-income ratio

DTA recognition timing uncertainty

MEDIUM

Trigger: If profitability remains volatile

Management view: We have enough capital for growth without that DTA as well and when DTA comes there is a straight addition of about 2400 crore and as I said that is a just a matter of time

Monitor: DTA recognition timeline

What Is Fusion Finance Ltd's Management Saying?

Key quotes from recent conference calls

“Q3 represents an important inflection point for Fusion. The business has now entered a phase of controlled stabilization and disciplined execution. I am pleased to share that we have returned to profitability this quarter delivering a PAT of 14 crores. — Sanjay Garyali”
“The NIM for the quarter stood at 11.3%, supported by a favourable portfolio mix, improving asset quality and lower income reversals from Stage 3 assets. — Krishan Gopal”
“We have liquidity of 1800 crore sanctions in the hand of about 1825 crore. So the focus is on the business and the growth and we are getting good support from the lenders plus as I mentioned we have a good headroom. — Sanjay Garyali”
“We have taken a very aggressive provisioning, and this was because we had a very tough time last year. We did not want to change it during the year. — Sanjay Garyali”

What Is Fusion Finance Ltd's Management Guidance?

Forward-looking targets from management for FY26

Management Tone: CAUTIOUS

Key Milestones

• Maintain improving asset quality trend

• Execute on disbursement growth

• DTA recognition

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.

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Frequently Asked Questions: Fusion Finance Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Fusion Finance Ltd's latest quarterly results?

Fusion Finance Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: +101.9%
  • Revenue Growth YoY: -12.2%
  • Net Interest Margin: 2.00%
  • Gross NPA: 4.38%

What is Fusion Finance Ltd's price-to-book ratio?

Fusion Finance Ltd's price-to-book ratio is 1.2x.

  • Price-to-Book (P/B): 1.2x
  • Book Value per Share: ₹118
  • Current Price: ₹141

Is Fusion Finance Ltd a fundamentally strong company?

Fusion Finance Ltd's fundamental strength based on key financial ratios

  • Return on Equity (ROE): -55.0%

Is Fusion Finance Ltd debt free?

Fusion Finance Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹6,000 Cr

What is Fusion Finance Ltd's return on equity (ROE) and ROCE?

Fusion Finance Ltd's return ratios over recent years

  • FY2023: ROE 21.0%
  • FY2024: ROE 20.0%
  • FY2025: ROE -55.0%

Is Fusion Finance Ltd's cash flow positive?

Fusion Finance Ltd's operating cash flow is positive (FY2025).

  • Cash from Operations (CFO): ₹1,000 Cr
  • Free Cash Flow (FCF): ₹2,000 Cr

What is Fusion Finance Ltd's dividend yield?

Fusion Finance Ltd currently does not pay a significant dividend (yield 0.00%).

  • Dividend Yield: 0.00%
  • Current Price: ₹141

Who holds Fusion Finance Ltd shares — promoters, FII, DII?

Fusion Finance Ltd's shareholding pattern (Dec 2025)

  • Promoters: 54.9%
  • FII (Foreign): 4.9%
  • DII (Domestic): 11.9%
  • Public: 28.0%

Is promoter holding increasing or decreasing in Fusion Finance Ltd?

Fusion Finance Ltd's promoter holding has decreased recently.

  • Current Promoter Holding: 54.9% (Dec 2025)
  • Previous Quarter: 55.0% (Sep 2025)
  • Change: -0.04% (decreasing — worth monitoring)

Is Fusion Finance Ltd a new momentum entry or an established outperformer?

Fusion Finance Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Fusion Finance Ltd?

Fusion Finance Ltd has 3 key growth catalysts identified from recent earnings analysis

  • Return to profitability with improving asset quality
  • Disbursement growth acceleration
  • DTA recognition potential

What are the key risks in Fusion Finance Ltd?

Fusion Finance Ltd has 2 key risks worth monitoring

  • High operating expenses limiting leverage
  • DTA recognition timing uncertainty

What did Fusion Finance Ltd's management say in the latest earnings call?

In Q3 FY26, Fusion Finance Ltd's management highlighted

  • "Q3 represents an important inflection point for Fusion. The business has now entered a phase of controlled stabilization and disciplined execution. I ..."
  • "The NIM for the quarter stood at 11.3%, supported by a favourable portfolio mix, improving asset quality and lower income reversals from Stage 3 asset..."
  • "We have liquidity of 1800 crore sanctions in the hand of about 1825 crore. So the focus is on the business and the growth and we are getting good supp..."

What is Fusion Finance Ltd's management guidance for growth?

Fusion Finance Ltd's management has provided the following forward guidance for FY26

  • Management tone: cautious
  • Milestone: Maintain improving asset quality trend
  • Milestone: Execute on disbursement growth

Is Fusion Finance Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Fusion Finance Ltd may be worth studying

  • Cash flow is positive — CFO ₹1,000 Cr

What is the investment thesis for Fusion Finance Ltd?

Fusion Finance Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Return to profitability with improving asset quality

Risk Factors (Bear Case)

  • Key risk: High operating expenses limiting leverage

What is the future outlook for Fusion Finance Ltd?

Fusion Finance Ltd's forward outlook based on current data signals

  • Key Catalyst: Return to profitability with improving asset quality
  • Key Risk: High operating expenses limiting leverage

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.