Fusion Finance Reports Return To Profit In Q4 FY26 Despite 10% Revenue Decline

Fusion Finance Limited reported a consolidated turnaround in earnings during Q4 FY26, supported by lower credit costs and finance expenses. Total income for the quarter ended March 31, 2026 stood at ₹430.1 crore, down 9.6% from ₹476.0 crore in Q4 FY25. Revenue from operations declined 10% year-on-year to ₹424.0 crore. The company posted a net profit of ₹114.2 crore compared with a net loss of ₹164.6 crore in the year-ago quarter. Profit before tax came in at ₹37.4 crore against a loss before tax of ₹164.6 crore a year earlier.

Sequential And Annual Growth

On a sequential basis, total income rose 1.4% from ₹424.1 crore reported in Q3 FY26, while revenue from operations increased 1.8% from ₹416.4 crore. Net profit surged from ₹14.1 crore in the previous quarter. Finance costs declined to ₹132.1 crore from ₹179.4 crore in Q4 FY25, while impairment on financial instruments narrowed sharply to ₹55.6 crore from ₹254.7 crore. Employee benefit expenses increased to ₹155.2 crore during the quarter compared with ₹146.2 crore in the year-ago period. Basic earnings per share stood at ₹7.06 against a negative ₹14.97 in Q4 FY25.

What Drove The Numbers

The company said it remained focused on lending operations within the domestic market and continued loan assignment transactions during the quarter. Fusion Finance transferred 1.67 lakh microfinance loans worth ₹505.9 crore and MSME loans worth ₹20.9 crore through assignment deals during Q4 FY26. The company also reported improved asset quality metrics, with gross Stage III assets at 1.21% and provision coverage ratio at 84.4%. During the year, the company raised ₹799.9 crore through a rights issue to strengthen its capital base.

Full-Year Performance

For FY26, total income declined 27% to ₹1,733 crore from ₹2,369 crore in FY25. Revenue from operations fell 21% to ₹1,699 crore. However, the company reported a net profit of ₹13.9 crore for FY26 against a net loss of ₹1,225 crore in FY25. Net worth increased to ₹2,456 crore as of March 31, 2026 from ₹1,643 crore a year earlier. The company also allotted 10 lakh equity shares under its employee stock option plan during the quarter.

Disclaimer: This report is based on audited financial results filed by the company and does not constitute investment advice.