Fusion Finance Ltd

Q2 FY26Finance

Fusion Finance Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹200

Market cap₹3.4K Cr

P/E244.8

Updated23 Aug 2026

Read4 min read

The short version

Fusion Finance expects around 30% growth in sales/revenue next year without significant increase in headcount. Fusion Finance expects around 30% growth in loan book next year without significantly increasing headcount, indicating efficiencies.

From Fusion Finance Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Fusion Finance expects around 30% growth in sales/revenue next year without significant increase in headcount.
Disbursements are trending upward, with Q2 disbursement at INR1,298 crores, up 37% sequentially; expected to surpass repayments between December and January.
Growth will be driven by both Microfinance (MFI) and MSME segments, with MSME AUM over INR710 crores ready to scale as a second growth engine.
Existing customer share in disbursements is about 75%, expected to temper to 60-65% by quarter 4 or next year, increasing new customer acquisitions.
Board has approved a second tranche of INR400 crores rights issue to support capital for growth.

2 more points management made on revenue & sales performance

Profitability & Margins

Fusion Finance expects around 30% growth in loan book next year without significantly increasing headcount, indicating efficiencies.
Disbursement momentum is anticipated to pick up sequentially from December-January onwards, leading to a book turnaround and eventual growth.
Opex reduction benefits will start reflecting significantly from Q3 FY26 due to employee cost savings and operational efficiencies.
Write-offs and recoveries are expected to improve over the next 2-3 quarters, cleaning up the portfolio and enhancing profitability.
NIMs are expected to be stable with guidance suggesting marginal cost of borrowing may decline by 20-30 bps next quarter.

2 more points management made on profitability & margins

See what Fusion Finance Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Fusion Finance is making significant investments in IT to reduce front-end operational burden and improve productivity through digital initiatives, such as digital receipting and real-time AI-enabled credit scoring and KYC.
Most IT investments are planned as long-term capex rather than front-ended opex.
There is a strategic focus on AI enablement to empower ground-level teams for better customer service.
The company is also investing in streamlining operations, especially collections and disbursement, aiming to improve efficiencies without significant headcount increases.
The Board has approved a second tranche of INR 400 crores rights issue for capital infusion to support the next growth phase, especially for microfinance and MSME segments.

2 more points management made on capital expenditure plans

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Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

Fusion Finance Limited raised INR1,394 crores in the reported quarter through term loans, ECBs, PTCs, and DA.
They have a sanction in hand of around INR2,730 crores comprising DA, PTC, and term loans, indicating strong liquidity and funding availability.
A second tranche of INR400 crores from an ongoing INR800 crores rights issue was called to boost disbursement and fund growth from next calendar year onwards.
The company expects no difficulty in raising incremental funds despite industry challenges.
Marginal cost of borrowing is expected to decline by 20-30 basis points next quarter.

2 more points management made on fundraising & capital structure

See what Fusion Finance Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The document does not explicitly provide details on Fusion Finance Limited's current, expected order book, or pending orders. However, some relevant insights related to loan disbursements and growth plans include: - Current monthly disbursement is approximately INR 450 crores. - Disbursements are expected to increase gradually, with growth anticipated to overtake repayments by December or January. - The company expects a 30% growth next year, with sustained disbursement momentum in both Microfinance (MFI) and MSME segments. - No significant increase in employee headcount is planned despite growth.

2 more points management made on order book & pipeline

What Fusion Finance's management said in earlier quarters

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Frequently Asked Questions

What were Fusion Finance Ltd Q2 FY26 results?

What is Fusion Finance Ltd share price analysis?

Fusion Finance Ltd currently shows a neutral. The stock trades at a P/E of 244.8 with a market cap of ₹3,391 Cr. Investors should review the full earnings analysis for detailed insights.

Is Fusion Finance Ltd planning capital expenditure?

Fusion Finance is making significant investments in IT to reduce front-end operational burden and improve productivity through digital initiatives, such as digital receipting and real-time AI-enabled credit scoring and KYC.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.