Fusion Finance returns to profit as impairment falls to Rs 78.19 crore

Fusion Finance Limited reported a Rs 148.89 crore profit for the half year ended September 30, 2026, reversing a Rs 114.39 crore loss a year earlier, as impairment on financial instruments fell to Rs 78.19 crore from Rs 290.01 crore. Total income increased to Rs 943.98 crore from Rs 878.26 crore.

How did Fusion Finance return to profit?

Fusion Finance returned to profit as total expenses fell by Rs 197.56 crore year on year, led by a Rs 211.82 crore reduction in impairment, while total income rose by Rs 65.72 crore. Profit before tax was Rs 148.89 crore for the half year ended September 30, 2026, compared with a loss before tax of Rs 114.39 crore in the corresponding 2025 period. Reported profit after tax was also Rs 148.89 crore, versus a Rs 114.39 crore loss a year earlier.

Fusion Finance’s half-year basic earnings per share, or EPS, turned to Rs 9.22 from a loss per share of Rs 8.97 in the preceding-year period, while diluted EPS was Rs 9.17 against a loss per share of Rs 8.97. The company said quarterly and half-year EPS figures are not annualised. Statutory auditor B.K. Khare & Co. issued a limited-review report dated November 2, 2026, rather than an audit opinion.

What happened to Fusion Finance’s revenue?

Fusion Finance’s revenue from operations rose to Rs 943.78 crore in the half year ended September 30, 2026 from Rs 858.07 crore a year earlier, although interest income increased by Rs 7 crore to Rs 814.17 crore. The wider increase in operating revenue included fees and commission income of Rs 17.31 crore compared with Rs 0.69 crore, and net gain on fair-value changes of Rs 33.74 crore compared with Rs 11.85 crore.

Net gain on derecognition of financial instruments under the amortised-cost category increased to Rs 30.58 crore from Rs 15.54 crore, while other operating income reached Rs 47.98 crore from Rs 22.82 crore. These movements coincided with other income falling to Rs 0.20 crore from Rs 20.19 crore. Total income therefore rose by Rs 65.72 crore, less than the Rs 85.71 crore increase in revenue from operations.

Finance costs increased to Rs 300.35 crore from Rs 283.16 crore during the six months, while other expenses declined to Rs 99.83 crore from Rs 106.27 crore. Depreciation and amortisation declined to Rs 3.50 crore from Rs 4.91 crore. The filing identifies one operating segment, lending to borrowers, and one geographic segment, domestic operations, so it provides no separate business-line revenue figures.

How did Fusion Finance’s September quarter compare with June?

Fusion Finance’s profit before tax increased to Rs 86.48 crore in the quarter ended September 30, 2026 from Rs 62.41 crore in the quarter ended June 30, 2026, as impairment fell to Rs 3.51 crore from Rs 89.68 crore. The September-quarter result also compared with a Rs 22.14 crore loss before tax in the quarter ended September 30, 2025. Reported profit after tax matched profit before tax at Rs 86.48 crore in the latest quarter.

Total income was Rs 485.67 crore in the September quarter, up from Rs 458.31 crore in the preceding June quarter and Rs 432.69 crore a year earlier. Revenue from operations was Rs 485.61 crore, compared with Rs 458.17 crore in June and Rs 415.79 crore a year earlier. Interest income rose to Rs 421.93 crore from Rs 392.24 crore sequentially, while finance costs were Rs 150.51 crore compared with Rs 149.84 crore.

Total expenses were Rs 399.19 crore in the September quarter, above Rs 395.90 crore in June but below Rs 454.83 crore a year earlier. Employee benefit expense was Rs 157.73 crore, versus Rs 155.49 crore in June, and other expenses were Rs 50.68 crore, versus Rs 49.15 crore. The sequential profit increase coincided principally with the lower impairment charge rather than lower total operating costs.

What do Fusion Finance’s balance sheet and cash flow show?

Fusion Finance’s loans increased to Rs 6,789.56 crore as of September 30, 2026 from Rs 6,000.83 crore at March 31, 2026, while total assets rose to Rs 8,856.98 crore from Rs 8,294.80 crore. Borrowings other than debt securities increased to Rs 5,614.95 crore from Rs 5,210.60 crore. Total equity rose to Rs 2,613.85 crore from Rs 2,455.93 crore, including other equity of Rs 2,452.26 crore.

The cash-flow statement recorded Rs 572.09 crore used in operating activities in the half year, compared with Rs 1,111.74 crore generated a year earlier. It recorded a Rs 858.55 crore increase in loans in 2026, whereas the comparable 2025 line showed a Rs 1,035.68 crore decrease in loans. Cash and cash equivalents ended September at Rs 1,660.73 crore, down from Rs 1,874.84 crore at the March 2026 year end.

Financing activities provided Rs 354.82 crore in the latest half year, compared with a Rs 1,087.08 crore outflow a year earlier. Fusion Finance received Rs 2,529.27 crore from borrowings other than debt securities and repaid Rs 2,134.66 crore. It also repaid Rs 40 crore of debt securities, while debt securities outstanding declined to Rs 266.90 crore from Rs 305.93 crore at March 31, 2026.

What lending change did Fusion Finance’s board approve?

Fusion Finance’s board approved an increase in its micro, small and medium enterprise, or MSME, lending ticket-size limit to Rs 50 lakh from Rs 25 lakh on November 2, 2026. The filing describes its business as domestic lending and does not disclose a lending-growth target or timetable for using the higher limit. The decision was announced alongside results for the quarter and half year ended September 30, 2026.

Fusion Finance also reported that Rs 798.792 crore of the Rs 799.86 crore rights-issue amount had been utilised by September 30, 2026 to augment its capital base. The rights issue allotted 6,10,58,392 equity shares at Rs 131 each in May 2025, and disclosed utilisation includes Rs 16.48 crore of issue expenses. During the latest quarter and half year, the company issued 34,070 equity shares on employee option exercises and 10,00,000 shares to the Fusion Employee Benefit Trust as treasury shares.

Conclusion

Fusion Finance’s half-year turnaround combined a Rs 148.89 crore profit with impairment falling to Rs 78.19 crore from Rs 290.01 crore, while total income increased to Rs 943.98 crore. Revenue from operations gained Rs 85.71 crore, but the Rs 211.82 crore reduction in impairment was the larger change between the prior-year Rs 114.39 crore loss and the latest profit.

The next results will show how Fusion Finance deploys its newly approved Rs 50 lakh MSME lending limit and whether loans, already Rs 6,789.56 crore at September 30, continue to rise. The filing also leaves investors to track impairment after the September-quarter charge of Rs 3.51 crore followed Rs 89.68 crore in June, alongside the effect of higher borrowings on finance costs.