Fusion Finance Q1 FY27 Results (NSE: FUSION)
Signal: Loss reversed
The read
The key inflection is a return to profitability at ₹62.41 crore from a ₹92.25 crore Q1FY26 loss, supported by total income growth to ₹458.31 crore and lower impairment expense than the year-ago period; however, PAT fell 45.35% QoQ from ₹114.19 crore and Gross Stage III remained high at 2.51%, so credit-cost normalization and asset-quality improvement remain the central trajectory tests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹458.31 Cr | +2.86% | +6.55% |
| Net profit | ₹62.41 Cr | N/M (loss to profit) | |
| EPS | ₹3.86 | N/M (loss to profit) | |
| EBIT margin | 0% |
P&L walk
Standalone total income increased to ₹458.31 crore, +2.86% YoY and +6.55% QoQ, while PAT was ₹62.41 crore versus a ₹92.25 crore year-ago loss and ₹114.19 crore in the preceding quarter; the sequential profit decline followed the unusually high prior-quarter base.
Key positives
- Total income reached ₹458.31 crore, +2.86% YoY and +6.55% QoQ, indicating sequential operating recovery.
- PAT turned positive at ₹62.41 crore from a ₹92.25 crore year-ago loss, while the provision coverage ratio stood at 81.53%.
- CRAR was strong at 36.95% and LCR at 186.65%, providing capital and liquidity buffers for growth.
- The company launched Individual Loans on August 10, 2026, adding a new domestic lending product.
Key concerns
- PAT declined 45.35% QoQ from ₹114.19 crore despite total income rising 6.55% QoQ, indicating a weaker sequential earnings base.
- Gross Stage III was 2.51% and Net Stage III was 0.47%, leaving asset quality as the principal earnings risk.
- Finance costs rose 13.43% QoQ to ₹149.84 crore, faster than sequential total-income growth of 6.55%.
- ₹108.143 crore of Rights Issue proceeds remained unutilized at June 30, 2026, so the pace of capital deployment will matter for future growth returns.
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