01 — At a Glance
The Microfinance Disaster Area That’s Quietly Rebuilding Itself
- 52-Week High / Low₹212 / ₹124
- Q3 FY26 Revenue₹416 Cr
- Q3 FY26 PAT₹14 Cr
- TTM EPS₹-16.34
- Annualised EPS (Q3)₹3.48
- Book Value / Share₹118
- Price to Book1.34x
- Gross NPA (Dec 2025)4.38%
- Net NPA (Dec 2025)0.60%
- AUM (Dec 2025)₹6,876 Cr
Flash Summary: Fusion Finance just recorded its first profitable quarter in ages (₹14 crore PAT). AUM is still 40% below peak (₹11,476 Cr in FY24), but the bleeding has stopped. Collections are normalizing. The auditor removed the going-concern bomb. Management says “inflection point.” The stock hasn’t moved. Market cap ₹2,566 crore, down from ₹2,600+ range. In other words: a tragedy that’s becoming a recovery nobody’s pricing in yet.
02 — Introduction
The Microfinance Company That Learned to Swim Again
Picture this: 2023 was the year Fusion Finance was the poster child for “what not to do in MFI.” Customers defaulted in monsoon floods. Reclassifications sent 55,000 borrowers into delinquency buckets. The balance sheet looked like someone had set it on fire. Auditors wrote the dreaded words: “going concern.” Shareholders watched their ₹400+ crore investment become ₹100+ crore overnight.
Now jump to December 2025. Three years later, the company has gone from “should we shut it down?” to “wait, this is actually working again.” Q3 FY26 PAT: ₹14 crore. Collections efficiency: 99.4%. GNPA: 4.38% (down from 5.46% in June). Net flow forward rates: 0.25% (that’s 99.75% retention, for the uninitiated). And here’s the kicker: auditors signed off saying going-concern is “no longer relevant.”
In short, this is a company that went to financial ICU, spent two years getting dialysis, and is now asking the doctor when it can go back to playing cricket. The answer: probably Q1 FY27, if current momentum holds.
Management’s Own Words (Feb 2026 Concall): “An important inflection point. Controlled stabilization and disciplined execution.” Translation: We stopped the bleeding. Now we’re learning to run again. And unlike the broader sector, we’re doing it on tighter guardrails, not just hoping lightning doesn’t strike twice.
03 — Business Model: Microfinance is Boring (Until It Breaks)
Lending to Women. In Groups. At 19-23% Interest. Simple. Except When It Isn’t.
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