Fusion Finance Eyes FY27 Rebound Amid Festive Demand

Fusion Finance anticipates a resurgence in demand for microfinance and MSME loans in the latter half of FY27, with festive seasons expected to boost market activity post-Navratri. While earlier projections for Assets Under Management (AUM) of Rs 10,000 crore by FY27 end might see slight moderation due to weather-related impacts in the September quarter, the lender is confident in sustained growth.

The company achieved a profit of Rs 86.5 crore in the September quarter, a substantial recovery from a loss of Rs 22 crore in the same period last year. This turnaround was driven by decreased credit costs and lower borrowing expenses, despite weather disruptions affecting approximately 140-150 branches across five states.

Looking ahead, Fusion Finance aims for a Compound Annual Growth Rate (CAGR) of 20-25% in AUM over three years, focusing on premium JLG loans and secured MSME lending. The lender is also diversifying its offerings through an integrated, branch-led model, expanding into premium JLG, individual lending, and secured MSME loans, while managing operating expenses and maintaining disciplined underwriting.