India · Delayed Price · Currency is INR Fusion Finance Earnings Call Transcripts
Fiscal Year 2027
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Strong Q1 performance with 88% YoY disbursement growth, improved asset quality, and 67% sequential PBT rise. High collection efficiency and robust capital position support a 20%-25% CAGR AUM growth target, with new products and technology driving future expansion.
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 a sharp reduction in credit costs, improved asset quality, and narrowing losses, with robust collection efficiency and stable NIMs. Growth will focus on existing customers in the near term, with profitability expected soon as credit costs decline further.
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 tightened underwriting have improved portfolio quality and collection efficiency, with stabilization expected in the next 1–2 quarters. Capital adequacy remains strong, and the upcoming rights issue will further bolster liquidity. Regional stress persists in select states, but overall outlook is cautiously optimistic.
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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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Disbursements and borrower growth remained steady, but rising customer leverage and moderation in collections led to early risk recognition and higher provisions, impacting asset quality and profitability. Management expects improvement from Q2 as sector guardrails and internal measures take effect.