Fusion Finance Limited has announced the grant of 1,45,000 stock options to eligible employees under its Employee Stock Option Plan 2023. The company's Nomination and Remuneration Committee approved this decision during a meeting held on February 27, 2026, which commenced at 06:25 PM IST and concluded at 06:35 PM IST.

Stock Option Grant Details

The comprehensive details of the stock option grant demonstrate the company's commitment to employee incentivization through equity participation.

Vesting and Exercise Framework

The stock options come with structured vesting and exercise provisions designed to align employee interests with long-term company performance. The options will vest not before 1 year from the grant date and not after the maximum vesting period as prescribed in ESOP 2023.

Key timeline parameters include:

• Minimum Vesting Period: 1 year from grant date
• Exercise Window: 8 years from the date of vesting
• Maximum Vesting Period: As per ESOP 2023 guidelines

Regulatory Compliance

The grant has been structured in full compliance with regulatory requirements. The scheme adheres to the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosure was made pursuant to Regulation 30 and Regulation 51 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Corporate Communication

The announcement was formally communicated to both the National Stock Exchange of India Limited and BSE Limited through proper regulatory channels. Company Secretary and Compliance Officer Vikrant Sadana signed the disclosure documents, with the information also made available on the company's website at www.fusionfin.com .

This stock option grant represents Fusion Finance Limited's ongoing strategy to attract and retain talent through equity-based compensation, providing employees with opportunities to participate in the company's future growth and success.

Fusion Finance Limited has reaffirmed its strategic focus on Uttar Pradesh, identifying the state as one of India's most significant markets for advancing financial inclusion alongside sustainable microfinance and MSME lending growth. The company reported profitability in Q3 FY26 while highlighting the state's critical importance to its operating strategy.

Strong Uttar Pradesh Market Position

The company has established a commanding presence in Uttar Pradesh, with the state representing a substantial portion of its overall business operations:

Q3 FY26 Financial Performance and Strategic Outlook

Fusion Finance achieved profitability in Q3 FY26, marking a significant milestone in the company's financial performance. The company's total Asset Under Management (AUM) stood at Rs. 6,876 crore as of December 31, 2025, serving over 23.4 lakh customers across India.

Speaking about the company's commitment, Mr. Sanjay Gargyali, MD & CEO, stated: "Q3 FY26 was a quarter of steady and disciplined execution for Fusion Finance. We delivered profitability while continuing to deepen our operational reach and strengthen asset quality. Markets like Uttar Pradesh remain a prime focus for us because of the strong demand for responsible credit."

Market Dynamics and Growth Drivers

Uttar Pradesh's appeal stems from its large rural and semi-urban population, growing entrepreneurial activity, and sustained demand for credit among low-income households and micro-entrepreneurs. The state holds nearly 11% market share in the MFI space, positioning it as a high-growth region within India's broader microfinance landscape.

Increasing financial awareness, gradual formalization of rural credit channels, and wider digital adoption are steadily strengthening access to organized finance in the state. These trends, combined with a resilient repayment culture, make Uttar Pradesh a structurally strong and diversified credit market.

Operational Excellence and Digital Transformation

Over the past year, Fusion has reinforced its institutional framework by strengthening branch-level monitoring, expanding digital onboarding through eKYC and digital signing, and deploying analytics for credit decisioning. The company has also implemented AI for operational efficiency, accelerating disbursement processes and improving underwriting discipline.

With 1,537 branches spread across 22 states including 3 Union Territories, Fusion Finance continues to focus on creating opportunities for underserved women entrepreneurs in rural areas while maintaining robust business practices and transparent policies.