Fusion Finance (FUSION) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 net profit was INR 86.48 crore, versus a loss of INR 22.14 crore YoY; H1 profit was INR 148.89 crore, versus a loss of INR 114.39 crore.

• AUM reached INR 8,007 crore, up 14% YoY; Q2 disbursements were INR 1,726 crore, up 33% YoY.

• Annualized ROA was 4.0%; priorities include profitable growth, tighter risk controls, technology-led operating leverage and MSME expansion.

Financial highlights

• Q2 total income was INR 485.67 crore, up from INR 415.79 crore YoY; NII was INR 265 crore, up 7%.

• PPOP was INR 125 crore, up 40% YoY; NIM was 12.52%, up 167 bps YoY and 59 bps QoQ.

• Q2 impairment was INR 38.51 crore, versus INR 111.15 crore YoY; H1 impairment was INR 78.19 crore, versus INR 290.01 crore.

• Q2 disbursements were INR 1,726 crore; H1 disbursements were INR 3,509 crore, up 56% YoY.

• Net worth was INR 2,613.85 crore and total assets were INR 8,856.98 crore at September 30, 2026.

Outlook and guidance

• Medium-term targets remain AUM of INR 10,000 crore, AUM growth of 20%-25%, ROA above 4% and credit costs of 2%-2.5%; weather disruption may extend the AUM timeline.

• FY27 credit-cost guidance remains 2%-2.5%; management expects 15-20 bps further margin expansion next quarter and aims to sustain or improve margins over the next two quarters.

• October disbursements rose 10% versus the prior-quarter monthly average; demand is expected to improve in H2.

• Plans include opening ~50 branches, consolidating low-productivity locations and expanding into new markets, including Tamil Nadu.

• Next-generation LOS and LMS rollout is planned for H2 FY27; voice AI and Fusion Mitra deployments are targeted by end-November and mid-November, respectively.