Any current/future new fundraising through debt or equity?

No equity infusion is planned for FY27 as the current capital adequacy of 36.46% provides sufficient headroom to support the target INR 10,000 crores AUM without further equity. In FY26, the company raised about INR 6,000 crores in debt, including INR 2,040 crores in Q4 through term loans, direct assignments, and pass-through certificates. The company has a strong pipeline of about INR 2,500 crores in potential new borrowings. Discussions with PSU banks are ongoing, and the company is hopeful of receiving fresh credit lines, especially under the credit guarantee scheme capped at INR 300 crores

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

Fusion Finance is migrating to a significantly more advanced Loan Management System (LMS), with User Acceptance Testing (UAT) commenced and migration expected by end of August 2026. The advanced LMS will be piloted initially in 10 branches, expanded to about 200 branches after confidence and back testing, and then rolled out to remaining 1,200–1,300 branches. This investment aims to improve branch productivity, onboarding quality, monitoring, customer service, and reduce process friction in underwriting and collections. There is also a planned branch consolidation with a net reduction of

Future growth expectations in sales/revenue/volumes?

Fusion Finance targets an AUM (Assets Under Management) of INR 10,000 crores by March 2027, indicating strong growth aspirations. From Q1 FY27, average AUM growth will start reflecting positively in Net Interest Income (NII) and Pre-Provision Operating Profit (PPOP), with real acceleration expected from Q2. Disbursements in Q4 FY26 saw strong sequential growth, with momentum attributed to better customer segment identification and increased automation. The company plans calibrated book growth driven by improved client onboarding, retention, and branch-level operating efficiencies. New

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

PAT growth is expected due to credit cost reduction and AUM growth starting Q1 FY27, with real acceleration from Q2 onwards. PPOP (Profit Before Provisions and Tax) growth will start in Q1 FY27, with significant acceleration in Q2. AUM growth guidance is maintained at INR 10,000 crores for FY27, supporting higher income growth from Q1 onwards. Operational expenses expected to increase marginally by 5-6% annually, with ongoing cost rationalization efforts potentially reducing this increase to 4-5%. Credit costs are projected to stabilize around 2.5% for FY27, lower than the through-cycl

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Fusion Finance LtdQ1 FY26Finance

Fusion Finance Ltd Q1 FY26 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 3

Margin

Category 3

Fundraise

Yes

Order

Capex

N/A

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Fusion Finance targets an AUM (Assets Under Management) of INR 10,000 crores by March 2027, indicating strong growth aspirations.
→From Q1 FY27, average AUM growth will start reflecting positively in Net Interest Income (NII) and Pre-Provision Operating Profit (PPOP), with real acceleration expected from Q2.
→Disbursements in Q4 FY26 saw strong sequential growth, with momentum attributed to better customer segment identification and increased automation.
→The company plans calibrated book growth driven by improved client onboarding, retention, and branch-level operating efficiencies.
→New client disbursement contribution is increasing, with 37% currently from new borrowers, striving towards 40% in FY27.
→MSME portfolio expected to scale with focused growth in ticket sizes between INR 8 lakhs to INR 15 lakhs, supported by collateral-based lending.
→Collection efficiencies remain robust (MFI ~99.7%, MSME ~99.3%), supporting portfolio stability amid growth.
→Overall, Fusion Finance is confident of achieving higher income growth linked to AUM and credit cost reduction.

Margin guidance

Category 3

→PAT growth is expected due to credit cost reduction and AUM growth starting Q1 FY27, with real acceleration from Q2 onwards.
→PPOP (Profit Before Provisions and Tax) growth will start in Q1 FY27, with significant acceleration in Q2.
→AUM growth guidance is maintained at INR 10,000 crores for FY27, supporting higher income growth from Q1 onwards.
→Operational expenses expected to increase marginally by 5-6% annually, with ongoing cost rationalization efforts potentially reducing this increase to 4-5%.
→Credit costs are projected to stabilize around 2.5% for FY27, lower than the through-cycle rate of 3.25-3.5%.
→Write-off recoveries and improved collections will continue to boost other income and profitability.
→Overall, earnings and EPS growth are anticipated due to improving asset quality, stable credit costs, controlled opex, and increasing AUM.

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Fundraise plans

Yes

→No equity infusion is planned for FY27 as the current capital adequacy of 36.46% provides sufficient headroom to support the target INR 10,000 crores AUM without further equity.
→In FY26, the company raised about INR 6,000 crores in debt, including INR 2,040 crores in Q4 through term loans, direct assignments, and pass-through certificates.
→The company has a strong pipeline of about INR 2,500 crores in potential new borrowings.
→Discussions with PSU banks are ongoing, and the company is hopeful of receiving fresh credit lines, especially under the credit guarantee scheme capped at INR 300 crores.
→Lender engagement is positive with 11 new lenders onboarded during FY26, diversifying the borrowing base.
→No specific announcements on new fundraising for FY27 were mentioned beyond maintaining current borrowing flexibility and pipeline.

Order book

The provided transcript from Fusion Finance Limited's May 18, 2026 call does not mention specific details about current or expected order book or pending orders. The discussion mainly covers: - Asset Under Management (AUM) growth targets (e.g., aiming for INR 10,000 crores AUM in FY27). - Disbursements and lending activities (e.g., Q4 disbursements at INR 2,140 crores). - Credit quality, provisioning, and collections. - Operational updates like branch consolidation and LMS system upgrades. - No explicit references to order books or pending orders are provided in the extracted pages. If you seek detailed order book or pending order information, it appears that data is not included in these pages. You may need to refer to other sections or documents for that information.

Capex plans

→Fusion Finance is migrating to a significantly more advanced Loan Management System (LMS), with User Acceptance Testing (UAT) commenced and migration expected by end of August 2026.
→The advanced LMS will be piloted initially in 10 branches, expanded to about 200 branches after confidence and back testing, and then rolled out to remaining 1,200–1,300 branches.
→This investment aims to improve branch productivity, onboarding quality, monitoring, customer service, and reduce process friction in underwriting and collections.
→There is also a planned branch consolidation with a net reduction of about 100 branches, focusing on operational efficiency.
→No explicit mention of other capital expenditure or strategic investments was provided in the discussed sections.

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