Fusion Finance (FUSION) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a year of institutional strengthening, with focus on portfolio quality, credit guardrails, and technology investments across MFI and MSME segments.

• Achieved Q4 FY26 PAT of ₹114.2 Cr and FY26 PAT of ₹13.9 Cr, with recognition of ₹76.8 Cr Deferred Tax Assets in Q4 FY26.

• Growth is now seen as sustainable, with improved execution discipline and resilience to external headwinds.

• Leadership changes included the appointment of a new Chief Strategy Officer, Non-Executive Director, and re-appointment of Managing Director & CEO.

• Audited financial results for the quarter and year ended March 31, 2026, were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• Q4 FY26 disbursements rose to ₹2,140 Cr, up 34% QoQ; AUM grew 8% QoQ to ₹7,407 Cr as of March 31, 2026.

• Q4 PAT was ₹114.2 Cr; full year FY26 PAT was ₹13.9 Cr, a return to profitability after a loss of ₹1,224.54 Cr in FY25.

• Net interest margin for Q4 stood at 11.44%; Net Interest Income for Q4 was ₹222 Cr.

• Total income for FY26 was ₹1,732.50 Cr; net worth stood at ₹2,456 Cr as of March 31, 2026.

• Active client base reached 21.69 lakhs, with 3.31 lakh new loans in Q4 FY26.

Outlook and guidance

• Targeting ₹10,000 Cr AUM by March 2027, with disciplined portfolio metrics and prudent disbursement growth.

• Credit cost guidance for MFI remains at 3.25%-3.75% long-term, but internal modeling targets 2.5%; overall weighted credit cost expected at 2.5% as MSME portfolio grows.

• Onboarding of new customers restricted to those with limited existing MFI exposure from April 2026.

• Expecting PPOP growth from Q1 FY27, with acceleration in Q2 as AUM growth impacts income.

• No material impact seen from geopolitical risks or inflationary pressures so far.