Fusion Finance Limited delivered a remarkable turnaround in Q3 FY26, posting a profit after tax of ₹14.05 crore compared to a loss of ₹22.14 crore in the previous quarter. The microfinance institution demonstrated strong operational momentum with disbursements growing 23% quarter-on-quarter to ₹1,594 crore, marking the highest level recorded in the last five quarters.

Financial Performance Overview

The company's financial metrics showed marked improvement across key parameters during Q3 FY26:

Net Interest Margin improved to 11.32% in Q3 FY26 from 10.85% in Q2 FY26, supported by improving portfolio trends and a reduction in the cost of funds to 10.28% from 10.35% in the previous quarter. The company reported earnings per share of ₹1.05 for the quarter.

Asset Quality Strengthening

Asset quality indicators continued to strengthen during the quarter, reflecting the company's focus on portfolio discipline:

Asset under management stood at ₹6,876 crore as of December 2025, while the active borrower base stood at approximately 23.4 lakh. The company operated through 1,537 branches across 22 states, including 3 Union Territories, with collection efficiency reaching its highest level in the last six quarters.

Balance Sheet Strength

The balance sheet remained robust with strong capital and liquidity positions:

The reported profitability includes a one-time impact of ₹6.91 crore arising from the implementation of the new labour code. The company's strong liquidity position and capital adequacy provide a solid foundation for future growth initiatives.

Leadership Developments

The Board of Directors appointed Mr. Brahmmanand Hegde as Additional Non-Executive Independent Director for a period of five consecutive years effective February 6, 2026, subject to shareholder approval. Mr. Hegde brings over 30 years of experience in microfinance, rural banking, and financial inclusion, having been a founder and key promoter of Vistaar Finance.

Earnings Conference Call Audio Available

The company has uploaded the audio recording of its Q3 FY25-26 earnings conference call on its website. The conference call, which discussed the unaudited financial results for the quarter and nine months ended December 31, 2025, was conducted from 9:30 AM to 10:35 AM IST. The audio recording is accessible on the company's website at fusionfin.com, with the transcript to be made available in due course.

Management Commentary

Mr. Sanjay Gargali, MD & CEO, commented that Q3 FY26 was a quarter of steady and disciplined execution for Fusion Finance. He emphasized the company's focus on strengthening core fundamentals, maintaining portfolio quality, and pursuing calibrated growth. The quarter saw continued improvement in collections across both the overall portfolio and the new book, reinforcing the resilience of the business model.

Overall, Q3 FY26 performance reflects continued balance sheet strengthening, margin expansion, and a return to profitability, positioning the company for the next phase of growth.

Fusion Finance Limited has announced the successful completion of its corporate action process, receiving trading approvals from both major stock exchanges for converted equity shares. The company informed the exchanges on February 04, 2026, that 14,765 equity shares have been cleared for trading following their conversion from partly paid-up to fully paid-up status.

Corporate Action Details

The conversion process involved 14,765 equity shares of ₹10/- each that were transformed from partly paid-up equity shares into fully paid-up equity shares on a rights issue basis. These shares had initially faced rejection by the depositories during the corporate action process, but the company has now successfully resolved all procedural requirements.

Trading Commencement

The converted shares are now available for trading on both the National Stock Exchange of India Limited and BSE Limited with effect from Thursday, February 05, 2026. The shares will trade under the existing ISIN INE139R01012 and rank pari passu with the company's existing equity shares, ensuring equal rights and privileges for all shareholders.

Process Timeline

The corporate action process began with the company's earlier communications to the exchanges dated November 08, 2025, November 14, 2025, January 05, 2026, and January 28, 2026. Despite initial rejection by depositories, the company successfully completed all necessary procedures to obtain final trading approvals from both exchanges.

Exchange Information

Official Communication

Company Secretary and Compliance Officer Vikrant Sadana digitally signed the official communication on February 04, 2026. The company has made this information available on its official website at www.fusionfin.com and has requested both exchanges to take the information on record. The communication was issued under the company's CIN L65100DL1994PLC061287, formerly known as Fusion Micro Finance Limited.