Fusion Finance Limited has just dropped its Q3 FY26 results, and the numbers tell a story of resilience, recovery, and renewed confidence. After a rough patch in previous quarters, the company has bounced back with strong disbursement growth and a return to profitability.
Disbursements Hit a Five-Quarter High
Loan disbursements surged to ₹1,594 crore, marking a 23% QoQ jump — the highest in the last five quarters. This growth signals not just demand but also Fusion’s ability to execute in a disciplined way across its 1,537 branches spread over 22 states and 3 Union Territories.
Profitability Returns
For investors and stakeholders, the headline is clear: Fusion Finance is back in the black. The company reported a profit after tax of ₹14 crore, compared to a loss of ₹22 crore in Q2 FY26. This turnaround was supported by better portfolio quality, improved margins, and lower credit costs.
Even with a one-time impact of ₹6.91 crore due to the new labour code, Fusion managed to deliver profitability — a sign of underlying strength.
Margins and Asset Quality Strengthen
Net Interest Margin (NIM): Rose to 11.32% from 10.85% in Q2.
Gross NPA: Improved to 4.38% from 4.61%.
Credit Cost: Reduced to ₹79 crore from ₹111 crore.
These improvements show that Fusion isn’t just chasing growth — it’s tightening its asset quality discipline and risk management practices.
Balance Sheet Confidence
Fusion’s balance sheet looks healthier than ever:
Capital Adequacy (CRAR): A strong 38.80%, boosted by a recent Rights Issue.
Liquidity: ₹1,783 crore, covering 23% of total assets.
The removal of the “Going Concern” caveat is another confidence booster, signaling that the company is on firmer ground for the long term.
CEO’s Take
MD & CEO Sanjay Garyali summed it up well: Q3 FY26 was about “steady and disciplined execution.” With collections hitting their highest level in six quarters, Fusion is proving that its business model is resilient and its risk practices are working.
Why This Matters
Fusion Finance isn’t just another NBFC-MFI. Its mission is rooted in empowering underserved women entrepreneurs in rural India. With ~23.4 lakh active borrowers, the company’s growth story is also a story of financial inclusion.
The Q3 FY26 results show that Fusion is not only stabilizing but also positioning itself for sustainable growth. For stakeholders, this quarter feels like a turning point — profitability is back, risks are under control, and the foundation for the next phase of expansion is set.
Source - Press Release
