Fusion Finance loans rise Rs 788.73 crore in six months

Fusion Finance Limited increased its loans balance by Rs 788.73 crore to Rs 6,789.56 crore between March 31 and September 30, 2026, while its half-year cash-flow statement recorded Rs 858.55 crore used by the increase in loans and Rs 394.61 crore of net borrowing proceeds excluding debt securities.

How much did Fusion Finance's loans balance increase?

Fusion Finance's loans balance rose by Rs 788.73 crore, from Rs 6,000.83 crore at March 31, 2026 to Rs 6,789.56 crore at September 30, 2026. Loans were the largest financial-asset category at the September reporting date and accounted for most of the Rs 565.50 crore rise in total financial assets to Rs 8,714.23 crore.

The loans increase exceeded the total financial-assets increase because cash and cash equivalents fell by Rs 214.11 crore over the same six months, to Rs 1,660.73 crore. Other financial assets also declined by Rs 28.71 crore to Rs 69.18 crore, while investments rose by Rs 21.11 crore to Rs 23.17 crore.

Fusion Finance reports one business segment, lending to borrowers, and one domestic geographic segment under Indian Accounting Standard 108. Its September 30, 2026 statement therefore gives no product, state or borrower-category breakdown for the Rs 6,789.56 crore loans balance.

What does Fusion Finance's cash flow show about loan growth?

Fusion Finance recorded Rs 858.55 crore as cash used by the increase in loans during the half year ended September 30, 2026. This contrasted with the corresponding half year ended September 30, 2025, when a Rs 1,035.68 crore decrease in loans released cash, producing a period-on-period swing of Rs 1,894.23 crore.

The lending-related cash use was greater than the Rs 184.07 crore operating cash flow before working-capital changes in the 2026 half year. After changes in loans, receivables, financial assets, bank balances, payables and provisions, cash used in operations was Rs 567.05 crore, and Rs 5.04 crore of income-tax payment took net operating cash outflow to Rs 572.09 crore.

The cash-flow increase in loans was Rs 69.82 crore greater than the Rs 788.73 crore increase in the balance-sheet loans line. Fusion Finance reports the figures in separate financial statements and does not provide a reconciliation between the cash-flow movement and the closing balance-sheet movement.

Fusion Finance received Rs 789.13 crore of interest and paid Rs 284.28 crore of interest in operating cash flows during the 2026 half year. In the September 2025 half year, interest received was Rs 799.17 crore and interest paid was Rs 273.59 crore, meaning receipts declined by Rs 10.04 crore while payments increased by Rs 10.69 crore.

How did Fusion Finance fund the lending-related cash requirement?

Fusion Finance generated Rs 394.61 crore of net cash from borrowings other than debt securities in the six months ended September 30, 2026. It received Rs 2,529.27 crore from those borrowings and repaid Rs 2,134.66 crore, compared with a net repayment of Rs 1,327.92 crore in the corresponding 2025 half year.

The change reflected both higher borrowing proceeds and lower repayments. Proceeds from borrowings other than debt securities rose from Rs 1,580.05 crore in the September 2025 half year, while repayments declined from Rs 2,907.97 crore; separately, Fusion Finance repaid Rs 40 crore of debt securities in 2026, against Rs 145 crore a year earlier.

On the balance sheet, borrowings other than debt securities rose by Rs 404.35 crore to Rs 5,614.95 crore at September 30, 2026. Debt securities declined by Rs 39.03 crore to Rs 266.90 crore, leaving the combined balance of the two funding categories Rs 365.32 crore above the March 31, 2026 level.

Fusion Finance also received Rs 1.67 crore from equity-share issuance and paid Rs 8 lakh in share-issue expenses in the 2026 half year. These compared with Rs 399.93 crore of equity proceeds and Rs 12.61 crore of issue expenses in the prior-year half year, while net cash from all financing activities turned to an inflow of Rs 354.82 crore from an outflow of Rs 1,087.08 crore.

What changed in Fusion Finance's earnings and cash position?

Fusion Finance reported profit before tax of Rs 148.89 crore for the half year ended September 30, 2026, compared with a loss before tax of Rs 114.39 crore a year earlier. Total income rose to Rs 943.98 crore from Rs 878.26 crore, while impairment on financial instruments fell to Rs 78.19 crore from Rs 290.01 crore.

Finance costs increased to Rs 300.35 crore from Rs 283.16 crore during the same comparison. Total expenses nevertheless decreased to Rs 795.09 crore from Rs 992.65 crore, as the Rs 211.82 crore reduction in impairment was larger than the Rs 17.19 crore increase in finance costs.

Total liabilities stood at Rs 6,243.13 crore at September 30, 2026, up Rs 404.26 crore from Rs 5,838.87 crore at March 31, 2026. Total equity increased by Rs 157.92 crore to Rs 2,613.85 crore, and total assets rose by Rs 562.18 crore to Rs 8,856.98 crore.

Cash and cash equivalents ended the half year at Rs 1,660.73 crore, compared with Rs 1,874.84 crore at March 31, 2026. Net operating cash outflow of Rs 572.09 crore, investing inflow of Rs 3.16 crore and financing inflow of Rs 354.82 crore together produced the Rs 214.11 crore decrease in cash.

Conclusion

Fusion Finance's September 2026 half-year filing shows loans rising by Rs 788.73 crore while the cash-flow statement recorded Rs 858.55 crore of lending-related cash use. Net borrowing proceeds of Rs 394.61 crore from borrowings other than debt securities contributed to financing activity, but cash and cash equivalents still declined by Rs 214.11 crore to Rs 1,660.73 crore.

The filing does not reconcile the Rs 858.55 crore cash-flow movement in loans with the Rs 788.73 crore increase in the balance-sheet loans line. Future disclosures will show whether the loans balance, the Rs 5,614.95 crore borrowings balance and cash flows continue to move in the same direction, and whether further detail is provided on that difference.