Future growth expectations in earnings/operating earnings/profits/EPS?

Fusion Finance targets crossing INR 10,000 crore in AUM in FY27, indicating significant growth. Growth is driven by nearly doubling the MSME book (INR 720 crore to INR 1,500 crore) which carries lower risk due to secured loans. MFI portfolio growth from INR ~6,400 crore to INR 8,600 crore is expected, though some of this is reinstating existing infrastructure rather than pure growth. Operating cost ratios are expected to stabilize as portfolio growth resumes. Pre-provisioning operating profit for Q3 was INR 94 crore, demonstrating earning strength; adjusted for one-time charges, profitability

Current/ Expected Orderbook/ Pending Orders?

Fusion Finance is targeting to cross INR 10,000 crore in AUM by FY27. Current AUM at the end of the last fiscal year is approximately INR 7,200-7,300 crore. The growth from around INR 7,000 crore to INR 10,200 crore implies about 40% growth. MSME book is expected to almost double from INR 720 crore to INR 1,500 crore. MFI book expected to rise from approximately INR 6,400 crore to INR 8,600 crore. January disbursements stood at around INR 670 crore from approximately 1,10,000 customers. There is a significant focus on increasing disbursement and utilizing existing infrastructure rather than ex

Any current/future new fundraising through debt or equity?

Fusion Finance has raised INR 2,127 crore during the first 9 months till December '25 through term loans (INR 1,347 crore), direct assignment (INR 434 crore), NCDs (INR 310 crore), and PTCs (INR 37 crore). The company has comfortable liquidity of about INR 1,783 crore as of December and sanctions in hand of INR 1,825 crore, available for drawing at any time. Capital adequacy stands at 38.8%, showing good headroom for growth without needing immediate capital raising. Rights issue received a robust subscription with INR 395 crore collected against the INR 400 crore issue size (~99% subscri

Any current/future capex/capital investment/strategic investment?

Fusion Finance is upgrading its Loan Origination System (LOS) and Loan Management System (LMS) to modern platforms. This technological upgrade is targeted for completion by May 2026. The modernization aims to improve front-end execution, reduce operational friction, provide real-time visibility into operational gaps, and support Joint Liability Group (JLG) operations more effectively. The upgraded systems will reduce frontline workload by shifting heavy lifting from field officers to technology. No specific mention of other capital expenditures or strategic investments was provided in the docu

Future growth expectations in sales/revenue/volumes?

Fusion Finance targets significant growth in its loan book, aiming to increase from approximately INR 7,200-7,300 crore to around INR 10,200 crore (about 40% growth) over the next year. MSME loan book is expected to nearly double from INR 720 crore to INR 1,500 crore, focusing on secured lending with low risk (LTV around 55%). MFI book is anticipated to grow from INR 6,400 crore to INR 8,600 crore, driven by existing infrastructure utilization rather than new setup. About 15% of the total INR 10,000 crore AUM will be MSME loans, differentiating through lower credit costs and secure colla

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Fusion Finance LtdQ4 FY27Finance

Fusion Finance Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹181P/E: 238.2Market Cap: ₹3.3K CrSector: Finance

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Fusion Finance targets significant growth in its loan book, aiming to increase from approximately INR 7,200-7,300 crore to around INR 10,200 crore (about 40% growth) over the next year.
→MSME loan book is expected to nearly double from INR 720 crore to INR 1,500 crore, focusing on secured lending with low risk (LTV around 55%).
→MFI book is anticipated to grow from INR 6,400 crore to INR 8,600 crore, driven by existing infrastructure utilization rather than new setup.
→About 15% of the total INR 10,000 crore AUM will be MSME loans, differentiating through lower credit costs and secure collateral.
→Disbursement pace remains strong, with January disbursements at around INR 670 crore from over 110,000 customers.
→Growth is seen as a reinstatement of existing capacity rather than aggressive expansion, leveraging stable operational teams and infrastructure.

Margin guidance

Category 2

→Fusion Finance targets crossing INR 10,000 crore in AUM in FY27, indicating significant growth.
→Growth is driven by nearly doubling the MSME book (INR 720 crore to INR 1,500 crore) which carries lower risk due to secured loans.
→MFI portfolio growth from INR ~6,400 crore to INR 8,600 crore is expected, though some of this is reinstating existing infrastructure rather than pure growth.
→Operating cost ratios are expected to stabilize as portfolio growth resumes.
→Pre-provisioning operating profit for Q3 was INR 94 crore, demonstrating earning strength; adjusted for one-time charges, profitability is higher.
→Credit costs projected to be in 3.25%-3.75% range on stable book, with ongoing focus on cost optimization.
→With strong capital adequacy (~39%) and liquidity (~INR 1,800 crore), Fusion is well positioned for growth without strain.
→Expected continued improvement in margins and profitability supported by improving asset quality and lower income reversals.

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Fundraise plans

Yes

→Fusion Finance has raised INR 2,127 crore during the first 9 months till December '25 through term loans (INR 1,347 crore), direct assignment (INR 434 crore), NCDs (INR 310 crore), and PTCs (INR 37 crore).
→The company has comfortable liquidity of about INR 1,783 crore as of December and sanctions in hand of INR 1,825 crore, available for drawing at any time.
→Capital adequacy stands at 38.8%, showing good headroom for growth without needing immediate capital raising.
→Rights issue received a robust subscription with INR 395 crore collected against the INR 400 crore issue size (~99% subscription).
→Management indicates strong lender confidence, with many banks freshly engaging and waiver coverage at 97%.
→No explicit mention of any future planned fundraising through debt or equity during the call; current sanctions and liquidity position are deemed sufficient for growth plans.

Order book

Yes

→Fusion Finance is targeting to cross INR 10,000 crore in AUM by FY27.
→Current AUM at the end of the last fiscal year is approximately INR 7,200-7,300 crore.
→The growth from around INR 7,000 crore to INR 10,200 crore implies about 40% growth.
→MSME book is expected to almost double from INR 720 crore to INR 1,500 crore.
→MFI book expected to rise from approximately INR 6,400 crore to INR 8,600 crore.
→January disbursements stood at around INR 670 crore from approximately 1,10,000 customers.
→There is a significant focus on increasing disbursement and utilizing existing infrastructure rather than expanding branches.
→Liquidity is comfortable with INR 1,783 crore available and sanctions of INR 1,825 crore in hand.
→Fresh debt raised till December '25 is INR 3,940 crore supporting growth plans.

Capex plans

Yes

→Fusion Finance is upgrading its Loan Origination System (LOS) and Loan Management System (LMS) to modern platforms.
→This technological upgrade is targeted for completion by May 2026.
→The modernization aims to improve front-end execution, reduce operational friction, provide real-time visibility into operational gaps, and support Joint Liability Group (JLG) operations more effectively.
→The upgraded systems will reduce frontline workload by shifting heavy lifting from field officers to technology.
→No specific mention of other capital expenditures or strategic investments was provided in the document.

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