1. Opening Hook
Just a quarter ago, Fusion Finance was busy apologizing for NPAs and covenant breaches.
This quarter? Suddenly, it’s rural recovery, festive cheer, AI underwriting, and “derisked balance sheets.”
The monsoon cooperated, borrowers started paying, and management confidence returned faster than a Diwali bonus. Even credit costs seem to have found religion and started declining quarter after quarter.
But before you start lighting candles for a turnaround story, remember: this is microfinance. Cycles don’t disappear—they just take chai breaks.
Yes, numbers look better. Yes, collections are up. Yes, disbursements are back.
But the real question is whether this is sustainable recovery—or just the calm phase before the next RBI memo.
Stick around. It gets interesting once we decode the numbers behind the optimism.
2. At a Glance
- Disbursements up 37% QoQ – Growth returned, apparently without loosening credit filters.
- Credit cost fell to ₹111 cr – From ₹178 cr last quarter; painkillers finally working.
- GNPA at 4.6% – Still high, but at least moving in the right direction.
- Collection efficiency at ~99% (POS basis) – Management switched metrics mid-call, but improvement is real.
- Net loss narrowed to ~₹22 cr – Losses dieting, not vanished.
3. Management’s Key Commentary
“The recovery in consumption is broad-based and sustainable.”
(Translation: Monsoon saved us. Please don’t ask about next year.) 😏
“PAR levels across most leading players have declined to multiyear lows.”
(Industry-wide relief rally—Fusion is not alone.)
“Disbursements stood at ₹1,298 crores in Q2, up 37% sequentially.”
(Growth is back, cautiously, under adult supervision.)
“75% of disbursements were to existing customers.”
(Trust your known defaulters less than new ones? No chance.)
“Approval rates improved to 27% from 24%.”
(Guardrails still tight, but at least the gate is open now.)
“Credit costs declined for the fourth consecutive quarter.”
(Finally, a trend we like.) 😊
“Our MSME portfolio is ₹708 crores, 91% secured.”
(Collateral: the adult in the room.)
“Capital adequacy stands at 31%.”
(Ammo loaded. Now let’s see where it’s fired.)
4. Numbers Decoded
Metric Q2 FY26 Q1 FY26 What It Means
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Disbursements ₹1,298 cr ₹950 cr Growth rebooted
GNPA 4.61% 5.5% Still high, but healing
NNPA 0.38% 0.38% Provisions doing
