Home / Business and Economy / Fusion Finance Returns to Profitability

Fusion Finance Returns to Profitability

10 Feb

Summary

Loan disbursement surged 23% to ₹1,594 crore, a five-quarter high.
Profit after tax reached ₹14 crore in Q3 FY26, reversing a loss.
Net interest margin expanded to 11.32%, improving fund cost and quality.

Fusion Finance, backed by Warburg Pincus, has successfully returned to profitability in the December quarter of FY26, demonstrating a strong focus on portfolio quality and strategic growth. The micro-finance company reported a profit after tax of ₹14 crore, a notable improvement from the ₹22 crore loss in the prior quarter.

The company observed a significant business momentum with loan disbursements rising 23% quarter-on-quarter to ₹1,594 crore, marking the highest volume in the past five quarters. This growth was supported by an improved net interest margin, which expanded to 11.32% from 10.85% in the preceding quarter.

Asset quality indicators showed positive movement, with gross NPA decreasing to 4.38% in the December quarter from 4.61% in September. Credit costs also saw a sharp decline to ₹79 crore from ₹111 crore sequentially, further bolstering earnings. The company maintained a robust capital adequacy ratio of 39% and ample liquidity.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.