Fusion Finance Ltd Q3 FY25 Results & Concall Highlights: Revenue, Margins & Order Book
Published 5 Aug 2026 | Finance | Market Cap: ₹3.4K Cr
Fusion Finance is currently adopting a cautious and calibrated approach towards growth due to industry guardrails and evolving credit underwriting norms. Fusion Finance expects stabilization and normalization in collections and portfolio quality over the next 1-2 quarters (Q4 FY25 to Q1 FY26), leading to a sustainable growth path thereafter.
From Fusion Finance Ltd's Q3 FY25 earnings-call transcript · updated 23 Aug 2026.
Price
₹200
Market Cap
₹3.4K Cr
P/E Ratio
244.8
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📊 Revenue & Sales Performance
- →Fusion Finance is currently adopting a cautious and calibrated approach towards growth due to industry guardrails and evolving credit underwriting norms.
- →The company expects stabilization and normalization in collections and asset quality over the next 1-2 quarters (Q1 2026 onwards).
- →Growth will be pursued sustainably once empirical evidence of on-ground recovery and liquidity certainty is established.
- →There is visible deleveraging in the customer base, with superior-quality portfolios building up since August 2024.
- →The company has 1,400 branches and a strong network, which positions it well to resume growth after the sector stabilizes.
- →Fusion Finance anticipates a period of consolidation now, followed by a return to growth from H2 FY26 onwards.
- →Industry-wide guardrails and prudent underwriting are expected to create a healthier environment for sustainable long-term growth.
📈 Profitability & Margins
- →Fusion Finance expects stabilization and normalization in collections and portfolio quality over the next 1-2 quarters (Q4 FY25 to Q1 FY26), leading to a sustainable growth path thereafter.
- →Growth will be calibrated and prudent initially, focusing on recovery and portfolio quality before scaling disbursements.
- →Post stabilization, projected FY26 and beyond outlook is cautiously optimistic with potential growth driven by improved customer behavior, deleveraging, and adherence to MFIN guardrails.
- →Operating costs have increased due to strategic investments (branch expansion, incentive changes, collection strengthening), but cost-to-income ratio adjusted for interest reversal is improving.
- →Capital adequacy ratio is strong (22.2%, expected to improve post rights issue), supporting future growth without immediate liquidity concerns.
- →Accounting treatment of deferred tax assets may improve reported profitability and hence EPS once profitable, potentially inflating ROA and ROEs.
- →Overall, the company aims for sustainable, responsible growth with disciplined underwriting and enhanced recovery efforts.
🏗️ Capital Expenditure Plans
- →Fusion Finance Limited is investing in enhancing its technology framework.
- →Earlier this financial year, they introduced FinDost, their in-house LOS and LMS platform for the MSME vertical.
- →They have started building a hybrid model for the microfinance vertical, planned for the coming financial year.
- →No explicit mention of other current or future capital expenditures beyond technology investments.
- →The focus remains on prudent underwriting, portfolio monitoring, recovery, and adapting to industry changes with technology adoption.
💰 Fundraising & Capital Structure
- →Fusion Finance Limited has planned an INR 800 crores rights issue, with the first tranche of around INR 400 crores expected in March 2025.
- →SEBI approval for the rights issue is awaited; no promoter hesitancy or other delays, just procedural regulatory approvals pending.
- →The rights issue proceeds will enhance capital adequacy, potentially to over 30% on a pro forma basis post infusion.
- →The company raised INR 395.18 crores in Q3 FY25, including INR 95 crores from direct assignment.
- →Till 9 months FY25, INR 4,450 crores was raised, including INR 1,010 crores from direct assignment.
- →Fusion maintains a strong liquidity position with INR 1,151 crores as of December 31, 2024, and close to INR 1,400 crores more recently.
- →The company also has sanctions in hand of INR 1,223 crores and continues to receive lender support through covenant waivers.
📋 Order Book & Pipeline
Key Metrics
Frequently Asked Questions
What were Fusion Finance Ltd Q3 FY25 results?
Fusion Finance is currently adopting a cautious and calibrated approach towards growth due to industry guardrails and evolving credit underwriting norms. Fusion Finance expects stabilization and normalization in collections and portfolio quality over the next 1-2 quarters (Q4 FY25 to Q1 FY26), leading to a sustainable growth path thereafter.
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 Limited is investing in enhancing its technology framework.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.