Fusion Finance (FUSION) Q4 24/25 earnings summary

Executive summary

• FY 2025 was marked by industry-wide stress, operational headwinds, and a 21.75% YoY decline in AUM to INR 8,980 crore, but decisive measures such as an oversubscribed INR 800 crore rights issue and leadership transition were implemented.

• New CEO appointed in March 2025, with the former MD moving to a non-executive chairman role, signaling leadership renewal.

• Rights issue of INR 800 crore was oversubscribed 1.5x, strengthening capital adequacy and liquidity.

• Business is stabilizing, with focus shifting from recovery to consolidation, prudent lending, and operational improvement.

• Prudent lending and calibrated disbursement growth prioritized borrower resilience and improved early vintage portfolio quality.

Financial highlights

• FY25 AUM at INR 8,980 crore, down 21.75% YoY; disbursements at INR 6,971 crore; total income at INR 2,369 crore.

• FY25 pre-provision operating profit was INR 736 crore; FY25 loss after tax was INR 1,225 crore.

• Q4 credit cost reduced to INR 253 crore from INR 571 crore in Q3 and INR 693 crore in Q2.

• Gross NPA reduced to 7.92% in Q4 FY25 from 12.58% in Q3 FY25; Net NPA at 0.3% after write-offs.

• Net interest margin for FY25 at 10.21%; Q4 FY25 NIM at 8.57%.

Outlook and guidance

• Cautiously optimistic for FY 2026, with priorities on asset quality, profitability, and tech transformation.

• Disbursements expected to grow month-on-month, with April at INR 313 crore and similar trends in May.

• Focus on disciplined growth, robust governance, and sustainable execution, with more detailed growth plans to be shared after Q1 FY 2026.