India · Delayed Price · Currency is INR Fusion Finance Earnings Call Transcripts
Fiscal Year 2027
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Disbursement grew 88% year-on-year and AUM rose 4% sequentially, with strong asset quality and collection efficiency above 99.75%. Gross NPA improved to 2.51%, credit cost declined, and PAT reached INR 62 crore. Guidance for 20%-25% CAGR growth and NIM improvement remains intact.
Fiscal Year 2026
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FY 2026 saw a return to profitability, robust AUM growth, and improved asset quality, with Q4 disbursements and collections at record levels. The company targets INR 10,000 crore AUM by March 2027, expects further PPOP growth, and maintains strong capital and liquidity positions.
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Profitability returned in Q3 FY26, driven by improved asset quality, strong collections, and disciplined disbursement growth. Liquidity and capital adequacy remain robust, with aggressive provisioning and technology upgrades supporting future growth.
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Q2 FY26 saw strong disbursement growth, improved asset quality, and stable margins, with GNPA down to 4.61% and collection efficiency at 98.85%. MSME and microfinance segments are scaling, OpEx is optimized, and capital adequacy remains robust. Credit costs are expected to trend around 3.5% going forward.
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Q1 FY 2026 saw sharply lower credit costs, improved asset quality, and robust collection efficiency, with losses narrowing and NIMs rising. Growth is focused on existing customers, with MSME expansion and digital initiatives supporting future profitability.
Fiscal Year 2025
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FY 2025 saw early decisive actions to address industry stress, with improved asset quality, robust capital adequacy, and stabilizing operations. MSME growth is a key focus, while MFI remains core. Cautious optimism guides FY 2026, with detailed growth plans expected post-Q1.
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Proactive risk management and tighter underwriting led to improved collection efficiency and healthier portfolio quality, though gross NPA remains elevated. Liquidity and capital adequacy are strong, with a major rights issue pending SEBI approval. Stabilization is expected in the next 1-2 quarters.
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Q2 FY25 saw elevated provisioning and write-offs due to asset quality stress, with gross NPA at 9.41% and capital adequacy at 24.4%. Management is implementing tighter credit norms, enhanced collections, and a rights issue to strengthen the balance sheet.
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Q1 FY25 saw steady disbursements and strong income growth, but rising customer leverage led to higher credit costs and increased NPAs. Management proactively recognized risk, tightened controls, and expects performance to improve by Q3 FY25.