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1. At a Glance
Fusion Finance closed the June 2026 quarter with revenue of ₹458 Cr and profit before tax of ₹62.41 Cr. Twelve months earlier, the same line read minus ₹92.25 Cr. Three quarters before that, it read minus ₹507.52 Cr, a number large enough that the minus sign felt like it was doing overtime.
Gross NPA came in at 2.51%, against 3.21% in the March quarter. Net NPA was 0.47%. Credit cost was ₹40 Cr, which management described as the seventh consecutive quarter of decline — a streak that in any other line of work would earn a small trophy.
Disbursements were ₹1,783 Cr, up 88% YoY from ₹950 Cr. AUM was ₹7,702 Cr, roughly 4% higher than the ₹7,407 Cr at March. Branch count moved to 1,512 from 1,536 at FY26 close, and the company has told investors it plans to open about 50 branches while shutting roughly 100 — a rare corporate plan where the arithmetic openly admits it goes backwards.
Elsewhere on the record: on 15 August the RBI imposed a ₹2.70 lakh penalty for KYC periodic review non-compliance. On 10 August the board approved a new product called Individual Loans. On 12 August the exchange sought clarification on an Economic Times article; the company replied that its disclosures were already out.
EPS for the quarter was ₹3.86. The full-year FY26 figure was ₹0.86. Both come from a share count that has itself moved considerably.
2. Introduction
Fusion was incorporated in 1994 as Ambience Fincap Pvt Ltd, a name that sounds like a discontinued air freshener. In 2009 it was taken over by Mr Devesh Sachdev and renamed Fusion Microfinance; operations as a non-deposit-taking NBFC began in 2010, and conversion to an MFI followed on 28 January 2014. It reached ₹1,000 Cr of AUM in 2017, added MSME loans in 2019, and listed on NSE and BSE in 2022-23. Somewhere in there the word “Microfinance” quietly left the name and “Finance” moved in, which is the corporate equivalent of taking the sticker off.
The recent past is legible straight off the P&L. FY24 delivered PAT of ₹505 Cr. FY25 delivered minus ₹1,225 Cr. FY26 delivered ₹13.85 Cr, a number arrived at only after a ₹76.78 Cr deferred tax credit in the March quarter, and one that management has been careful to describe in stages rather than in triumph.
Management frames the last eighteen months as a structural deleverage in microfinance: per the August concall, “the bottom segment…constituted of heavily leveraged customers…moved out of the formal MFI sector,” and the remaining borrowers are described as better placed to service obligations. Fusion’s own response, per the same call, was to be more selective on acquisition, more granular on geography, and more technology-led on management — three adverbs that between them cover most of what any lender has ever claimed to do.
Capital was reinforced along the way. The Rights Issue approved in December 2024 raised ₹799.86 crore; allotment of 6,10,58,392 shares at ₹131 was approved on 2 May 2025. As at 30 June 2026, ₹691.72 crore of that had been utilised toward augmenting the capital base, with ₹108.14 crore unutilised. Equity capital on the balance sheet went from ₹100.65 Cr at FY25 to ₹161.52 Cr at FY26, which is what happens when you print sixty-one crore rupees of face value in a single go.
The board also passed a governance milestone worth stating flatly: in February 2026 it approved an application to reclassify the Devesh Sachdev family out of the promoter group.
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3. Business Model: WTF Do They Even Do?
Fusion lends money to women. Specifically, group-based microfinance loans through Joint Liability Groups of 5-7 members, where repayment is backed by mutual guarantee — an underwriting model that replaces collateral with the social force of five neighbours who know exactly which house you live in. Loans run 17-25 months at 23.4%-23.98% on a reducing balance, with repayments every 14 or 28 days. The collection calendar is therefore denser than most people’s gym schedules and considerably better attended: All-India current collection efficiency on POS was 99.76% in June 2026.
The reach is the point. As of Q1 FY27 the company operated 1,512 branches across 22 states and 3 Union Territories, covering 489 districts, with 20 lakh-plus active customers. The presence mix is 94% rural, 6% urban. About 68% of branches sit in the top five states. Average ticket size on the MFI book was ₹61,000 in Q1 FY27, up from ₹53,300 a year earlier, and AUM per branch was ₹5.1 Cr.
The second vertical is secured MSME — loans against property for small enterprises in tier 3 and 4 towns, run out of 90 branches across 8 states. MSME AUM was ₹796 Cr at 30 June 2026 with Q1 disbursements of ₹98 Cr, 19,000-plus active customers, LTV of 42.5%, and an average tenor of 74 months. Six years is a long time to stay in touch with a wholesaler.
Then there is the newest item. On 10 August 2026 the board approved Individual Loans, a domestic lending product, and management described it on the concall as sourced through MFI branches but overseen by the MSME credit team, with an initial ticket of about ₹1.5 lakh, first disbursals expected in the first week of September, launched through
