Fusion Finance Limited (formerly Fusion Micro Finance Limited) has announced its financial results for the quarter and half year ended September 30, 2025, showing signs of recovery with reduced losses and improved operational metrics.

Key Financial Highlights

• Reduced Net Loss: The company reported a net loss of INR 22.14 crore in Q2 FY26, significantly lower than the INR 92.25 crore loss in Q1 FY26.
• Revenue Decline: Total income stood at INR 432.69 crore in Q2 FY26, down from INR 445.57 crore in Q1 FY26.
• Improved Net Interest Margin: NIM increased to 10.85% in Q2 FY26 from 10.29% in Q1 FY26.
• Asset Quality Improvement: Gross NPA declined to 4.61% in Q2 FY26 from 5.43% in Q1 FY26.

Operational Performance

• Loan Disbursements: Total loan disbursements stood at INR 1,298 crore in Q2 FY26, marking a 37% increase quarter-on-quarter.
• Assets Under Management: AUM stood at INR 7,038 crore as of September 2025.
• Branch Network: The company operates 1,545 branches across 22 states and 3 Union Territories.
• Active Borrower Base: Approximately 25.8 lakh active borrowers as of September 2025.

Financial Metrics

Management Commentary

Mr. Sanjay Garyali, MD & CEO of Fusion Finance Limited, stated, "Our path to recovery continues, reflected in the sharp reduction in losses, growth in disbursements, and consistent improvement in collection efficiency, credit costs, and GNPA levels. These outcomes demonstrate the strength of our disciplined underwriting practices, tighter operational guardrails, and tech-led processes."

He added, "With overall collection efficiency now at 98.5% and that of the new book at 99.5%, we are building a stronger, more resilient portfolio. Going forward, we aim to grow responsibly across emerging rural and MSME markets."

Other Developments

• The company has made its onboarding process completely paperless, enhancing customer experience.
• Fusion Finance has received IRDAI approval to operate as a Corporate Insurance Agent, positioning it to offer comprehensive financial solutions beyond lending.
• The Board of Directors has approved the issuance of non-convertible debentures up to an aggregate amount of INR 1,000 crore on a private placement basis.
• Mr. Devesh Sachdev has resigned from his position as a director of the company, effective November 4, 2025.
• The Board approved making a first and final call on partly paid-up equity shares of Rs 65.50 per share with November 11, 2025 as the record date.

Liquidity and Capital Adequacy

• The company maintains a robust liquidity position with INR 892 crore in cash and cash equivalents and liquid assets, representing 12.58% of total assets.
• Capital adequacy remains healthy with a CRAR of 31.31%.

Fusion Finance continues to focus on sustainable growth while maintaining prudent risk management practices. The company's efforts in improving operational efficiency and asset quality are reflected in the reduced losses and improved financial metrics for the quarter.

Fusion Finance Limited (formerly Fusion Micro Finance Limited) has scheduled two important events for early November 2025, signaling key financial updates for investors and stakeholders.

Earnings Conference Call

The company has announced its Q2 FY2025-26 earnings conference call, set to take place on Thursday, November 6, 2025, at 9:30 AM IST. This call will provide insights into Fusion Finance's business performance and results for the second quarter and first half of the fiscal year 2026.

Key details of the earnings call are as follows:

Investors can pre-register for the call to avoid wait times using the provided Diamond Pass link.

Management Representation

The call will feature key members of Fusion Finance's leadership team:

• Sanjay Garyali - Managing Director & Chief Executive Officer
• Amandeep Singh - Interim Chief Financial Officer
• Sunil Mundra - Chief Operating Officer – MFI
• Jitender Sharma - Chief Operating Officer - MSME
• Vikrant Sadana - Company Secretary & Compliance Officer

Additionally, other senior management team members will be present during the call.

Board Meeting Announcement

In a separate notification, Fusion Finance has also announced a board meeting scheduled for Tuesday, November 4, 2025. The meeting agenda includes:

1. Consideration and approval of the un-audited financial results for Q2 and H1 FY2026 (ending September 30, 2025).
2. Discussion on fund-raising through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis.

Trading Window

The company has stated that the trading window for insiders will reopen on Friday, November 7, 2025, in compliance with the "Code of Conduct for Prevention of Insider Trading" and SEBI regulations.

These announcements underscore Fusion Finance's commitment to transparency and regulatory compliance. Investors and analysts will be keenly watching the upcoming earnings call and board meeting for insights into the company's financial health and future strategies.

For those interested in participating in the earnings call or seeking more information, Fusion Finance has provided contact details for their representative, Aayush Saraswat, and Adfactors PR representative, Smit Shah.

Investors are reminded that securities investments are subject to market risks, and it is advisable to read all related documents carefully before investing.