Fusion Finance Limited has confirmed the payment of interest on its non-convertible debentures (NCDs) for the period ended August 2026. The company settled the dues with eligible debenture holders on August 28, 2026.

The payment relates to an NCD issue with a total size of ₹150 crore, identified by ISIN INE139R07456. The interest amount due was ₹139.5 lakh, inclusive of applicable taxes. After tax deductions, the net amount paid to investors stood at ₹125.55 lakh.

Payment Details

The interest payment schedule operates on a monthly frequency. The record date for this tranche was set as August 14, 2026, while the statutory due date was August 29, 2026. The company executed the actual payment one day ahead of the deadline.

This follows the previous interest payment made on July 28, 2026. There were no delays or changes in the payment frequency reported for this cycle.

Regulatory Compliance

The disclosure is made pursuant to Regulation 57 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also aligns with the SEBI Master Circular for Debenture Trustees (SEBI/HO/DDHS-PoD-1/P/CIR/2025/117).

Vikrant Sadana, Company Secretary and Compliance Officer of Fusion Finance Limited, signed the certificate from Gurugram. No redemption payments were processed during this period.

Fusion Finance reported a standalone net profit of ₹62.41 crore for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the net loss of ₹92.25 crore recorded in the corresponding quarter of the previous year. Alongside this financial recovery, the company’s Board of Directors approved the launch of 'Individual Loans,' a new domestic lending product aimed at diversifying its customer offerings. This dual development signals a strategic shift towards stabilizing profitability while expanding its loan book through new segments.

Q1FY27 Financial Performance

The company’s return to profitability was driven by a sharp reduction in impairment charges and controlled operating expenses, despite a slight decline in total revenue. Total revenue from operations stood at ₹458.17 crore in Q1FY27, down from ₹442.28 crore in Q1FY26. However, the bottom line improved substantially as total expenses decreased to ₹395.90 crore from ₹537.82 crore in the prior year period.

Interest income contributed ₹392.24 crore to the top line, slightly lower than the ₹421.89 crore reported in Q1FY26. Fees and commission income saw a notable increase to ₹8.33 crore from ₹0.35 crore year-on-year, indicating growth in ancillary revenue streams. The most significant driver of the profit turnaround was the reduction in impairment on financial instruments, which fell to ₹39.68 crore from ₹178.86 crore, reflecting improved asset quality or lower provisioning requirements.

Key Operational Metrics

As per the disclosures under Regulation 52(4) of the SEBI LODR Regulations, Fusion Finance maintained a robust capital position. The Capital to Risk-Weighted Asset Ratio (CRAR) stood at 36.95%, well above regulatory norms. The Gross Stage III ratio was reported at 2.51%, with a Provision Coverage Ratio of 81.53%. The Liquidity Coverage Ratio (LCR) remained strong at 186.65%, ensuring adequate short-term liquidity.

The debt-equity ratio stood at 2.32 times, with net worth increasing to ₹2,520.69 crore. The company has not transferred any non-performing assets (NPAs) during the quarter but did transfer ₹238.90 crore worth of loans not in default through assignment, retaining a 10% beneficial economic interest.

New Product Launch: Individual Loans

The Board approved the introduction of 'Individual Loans' effective August 10, 2026. This product is categorized under lending and is targeted exclusively at the domestic market, catering to Indian customers. The launch aligns with the company’s strategy to broaden its product portfolio beyond its existing microfinance offerings, potentially tapping into new customer segments for growth.

Rights Issue Utilization

Regarding the earlier rights issue of ₹799.86 crore approved in December 2024, the company utilized ₹691.72 crore up to June 30, 2026, primarily for augmenting its capital base. An unutilized amount of ₹108.14 crore remains, which includes rights issue expenses of ₹2.51 crore. The remaining calls-in-arrears of ₹1.07 crore are set to be forfeited.

Earnings Call Transcript Disclosure

In pursuance to Regulation 30 and Regulation 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Fusion Finance Limited disclosed that the transcript of its earnings conference call is available on the company's website. The call, held on August 10, 2026, commenced at 6:00 pm and concluded at 7:03 pm. It discussed the standalone unaudited financial results for the quarter ended June 30, 2026.

What the Numbers Show

The divergence between the modest revenue decline and the significant profit turnaround highlights the impact of credit cost management on Fusion Finance’s bottom line. With impairment charges dropping by nearly 78%, the company has effectively insulated its profitability from minor fluctuations in interest income. The launch of Individual Loans suggests management’s confidence in its underwriting capabilities and desire to reduce dependency on traditional microfinance segments, potentially improving long-term revenue stability.