Fusion CX H1 FY27 acquisitions drove Rs 102.7 crore outflow

Fusion CX Limited reported a Rs 102.7 crore net acquisition outflow in the first half (H1) of financial year (FY) 2027, compared with Rs 15.8 crore in FY26, while cash and cash equivalents stood at Rs 58.6 crore on 30 September 2026, versus Rs 89.6 crore on 31 March 2026.

How did Fusion CX fund acquisitions in H1 FY27?

Fusion CX recorded Rs 127.6 crore of cash paid for subsidiary acquisitions in H1 FY27 and Rs 24.9 crore of cash acquired with those subsidiaries, resulting in a Rs 102.7 crore net acquisition outflow. The net outflow was Rs 86.9 crore higher than the Rs 15.8 crore reported for FY26, although FY26 represents a full year and H1 FY27 represents six months.

The capital-allocation mix changed between the two periods. Gross acquisition payments rose from Rs 24.6 crore in FY26 to Rs 127.6 crore in H1 FY27, while cash acquired with subsidiaries increased from Rs 8.8 crore to Rs 24.9 crore. Fusion CX also moved from Rs 39.9 crore of net debt repayment in FY26 to Rs 40.3 crore of net borrowings in H1 FY27.

Fusion CX reported no dividend payment in H1 FY27, compared with Rs 3.8 crore paid in FY26. Lease payments and interest paid totalled Rs 68.6 crore in H1 FY27, below the Rs 96.3 crore recorded in FY26, while the presentation does not identify the acquired subsidiaries or provide transaction-level purchase-price allocations.

What happened to Fusion CX's cash flow in H1 FY27?

Fusion CX generated Rs 132.9 crore of operating cash flow and Rs 122 crore of free cash flow in H1 FY27. Free cash flow, defined in the presentation as operating cash flow plus net capital expenditure, included Rs 11 crore of net capital expenditure and exceeded the Rs 102.7 crore net acquisition outflow by Rs 19.3 crore.

Operating cash flow reflected Rs 162.1 crore of operating profit before working capital, a Rs 27.1 crore working-capital outflow and Rs 2 crore of income tax paid. Reported earnings before interest, tax, depreciation and amortisation were Rs 192.7 crore, and cash conversion, calculated by Fusion CX as operating cash flow divided by reported earnings before interest, tax, depreciation and amortisation, was 69.0%.

The comparable FY26 figures were Rs 264.2 crore of operating cash flow, Rs 248.1 crore of free cash flow and 80.1% cash conversion. Net cash used in investing activities was Rs 164 crore in H1 FY27, compared with Rs 83.1 crore in FY26, while net cash from financing activities was an outflow of Rs 23.7 crore, versus an outflow of Rs 138 crore.

The cash-flow summary reports a Rs 54.7 crore net decrease in cash in H1 FY27 and closing cash and cash equivalents of Rs 58.6 crore. Separately, the balance sheet reports cash and cash equivalents of Rs 89.6 crore at 31 March 2026 and Rs 58.6 crore at 30 September 2026, a Rs 31 crore decline; the supplied presentation does not explain the difference between these movements.

How did acquisitions affect Fusion CX's balance sheet?

Fusion CX's goodwill rose by Rs 192.8 crore to Rs 553.2 crore at 30 September 2026. The increase occurred alongside Rs 127.6 crore of cash paid for subsidiary acquisitions in H1 FY27, but the presentation does not state how goodwill was allocated across individual transactions.

Total non-current assets increased by Rs 172.3 crore to Rs 963.4 crore between 31 March and 30 September 2026. Property, plant and equipment increased from Rs 95.8 crore to Rs 100.9 crore, while right-of-use assets declined from Rs 123.6 crore to Rs 107.5 crore and other intangible assets declined from Rs 106.4 crore to Rs 98.5 crore.

Total assets rose by Rs 212 crore to Rs 1,613.4 crore. Current assets increased by Rs 39.7 crore to Rs 650 crore despite the cash decline, as trade receivables rose by Rs 42.6 crore to Rs 417.7 crore and current loans rose by Rs 34.8 crore to Rs 106.4 crore; bank balances other than cash and cash equivalents fell from Rs 13.9 crore to Rs 11.3 crore.

Fusion CX's total borrowings increased by Rs 40.4 crore to Rs 307.3 crore at 30 September 2026. Current borrowings were Rs 217.6 crore, up from Rs 187.1 crore, while non-current borrowings rose from Rs 79.8 crore to Rs 89.7 crore. Total equity increased by Rs 117.9 crore to Rs 678.6 crore and total liabilities rose by Rs 94.1 crore to Rs 934.8 crore.

What operating results supported Fusion CX's H1 FY27 funding?

Fusion CX reported Rs 1,015.8 crore of revenue from operations and Rs 114.2 crore of profit for H1 FY27. Profit before tax was Rs 126.3 crore after Rs 18.7 crore of finance costs and Rs 47.7 crore of depreciation and amortisation, while total income was Rs 1,044.2 crore.

Employee benefits expense was Rs 692.6 crore in H1 FY27, the largest listed expense, followed by Rs 158.8 crore of other expenses. Total expenses were Rs 917.9 crore, including Rs 47.7 crore of depreciation and amortisation, compared with total income of Rs 1,044.2 crore.

Fusion CX ended the second quarter (Q2) of FY27 with 15,101 employees, compared with 13,735 at the end of the first quarter of FY27 and 12,401 at the end of Q2 FY26. Revenue per employee was Rs 14 lakh on an annualised basis in all three reported quarters, while annualised voluntary attrition declined to 29.4% in Q2 FY27 from 31.2% in the preceding quarter.

The Q2 FY27 revenue mix also changed from Q2 FY26. Telecom and Other Utilities accounted for 39.2% of revenue, down from 48.6%, while Banking, Financial Services and Insurance increased to 18.2% from 13.7%. The five largest clients accounted for 36.5% of revenue, down from 42.5%, and nearshore delivery centres accounted for 39.7%, compared with 29.1% a year earlier.

Conclusion

Fusion CX's H1 FY27 figures show acquisition activity as a major use of cash, with the Rs 102.7 crore net acquisition outflow substantially above FY26's Rs 15.8 crore. Operating cash flow of Rs 132.9 crore, Rs 40.3 crore of net borrowings and a Rs 192.8 crore increase in goodwill occurred alongside a closing cash balance of Rs 58.6 crore.

The next financial statements will show whether borrowings, receivables and goodwill continue to change following the 30 September 2026 position. Readers can also monitor whether Fusion CX provides an explanation for the difference between the cash-flow summary's Rs 54.7 crore net cash decrease and the Rs 31 crore decline implied by the two reported balance-sheet cash balances.