Fusion Finance Q3 FY26 Results Show Margin and Asset Gains

Fusion Finance Limited (formerly Fusion Micro Finance Limited) reported a strong operational and financial performance in Q3 FY26, with total loan disbursements rising 23% quarter-on-quarter to INR 1,594 crore, the highest level recorded in the last five quarters. The company reported a profit after tax of INR 14 crore in Q3 FY26, compared to a loss of INR 22 crore in Q2 FY26, reflecting continued improvement in portfolio quality, margins, and balance sheet strength. The reported profitability includes a one-time impact of ₹6.91 crore arising from the implementation of the new labour code

Asset under management stood at INR 6,876 crore as of December 2025, while the active borrower base stood at ~23.4 lakh. The company operated through 1537 branches across 22 states, including 3 Union Territories, with collection efficiency reaching its highest level in the last six quarters, underlining improving recovery trends and asset quality discipline.

Net Interest Margin (NIM) improved to 11.32% in Q3 FY26 from 10.85% in Q2 FY26, supported by improving portfolio trends and a reduction in the cost of funds to 10.28% from 10.35% in the previous quarter. Total income stood at INR 424 crore in Q3 FY26 compared to INR 433 crore in Q2 FY26, while net interest income remained stable at INR 237 crore versus INR 247 crore in the previous quarter. Pre-provision operating profit rose to INR 94 crore in Q3 FY26 from INR 89 crore in Q2 FY26.

Asset quality indicators continued to strengthen during the quarter. Gross NPA declined to 4.38% from 4.61% in Q2 FY26, while Net NPA stood at 0.63%. Credit cost reduced to INR 79 crore in Q3 FY26 from INR 111 crore in Q2 FY26, with sustained Stage 3 provision coverage of ~86%.

The balance sheet remained robust, supported by a healthy capital adequacy position with CRAR at 38.80%, backed by the recently completed Rights Issue. Liquidity remained strong at INR 1783 crore, comprising cash, cash equivalents, and liquid assets, amounting to 23.01% of total assets.

Sharing his views, Mr. Sanjay Garyali, MD & CEO, Fusion Finance Limited, said, “Q3 FY26 was a quarter of steady and disciplined execution for Fusion Finance. We remained focused on strengthening our core fundamentals, maintaining portfolio quality, and pursuing calibrated growth in a dynamic operating environment.  The quarter saw continued improvement in collections across both the overall portfolio and the new book, reinforcing the resilience of our business model and the effectiveness of our risk and underwriting practices. As we move ahead, we will stay committed to responsible lending, prudent risk management, and building a stronger, more resilient portfolio that supports sustainable long-term value creation for all stakeholders.”

Overall, Q3 FY26 performance reflects continued balance sheet strengthening, margin expansion, and a return to profitability, positioning the company for the next phase of growth.

Financial Snapshot:  (₹ In cr)

*Adjusted for Right Issues

Key Metrics: Q3 FY26

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