Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Fusion Finance reported a profit after tax of INR 62 crore in the first quarter of financial year 2026-27, compared with a loss of INR 92 crore in the year-ago quarter. The improvement was supported by higher net interest margins, lower credit costs and better asset quality. Core net interest income rose 6 per cent quarter-on-quarter to INR 236 crore, while disbursements increased 88 per cent year-on-year to INR 1,783 crore. The lender also reduced its gross NPA ratio to 2.51 per cent and maintained collection efficiency above 99.7 per cent during the quarter.
Non-bank lender Fusion Finance reported a profit after tax of INR 62 crore in the first quarter of financial year 2026-27, marking a turnaround from the INR 92 crore loss recorded in the corresponding quarter of the previous financial year. The improvement was supported by stronger net interest margins and an improvement in asset quality.
The company's core net interest income rose 6 per cent quarter-on-quarter to INR 236 crore during the June quarter. Net interest margin increased to 11.93 per cent from 10.29 per cent in the previous quarter. Assets under management remained broadly flat at INR 7,702 crore as of the end of June.
Disbursements recorded strong growth during the quarter, rising 88 per cent year-on-year to INR 1,783 crore compared with INR 950 crore in the corresponding period last year. The increase came even as the company continued to operate with tighter lending controls.
Fusion Finance Managing Director and Chief Executive Officer Sanjay Garyali said the company remained on track to achieve its previously stated disbursement guidance of INR 10,000 crore for the financial year. He said around 45 per cent of the expected disbursements are likely to take place in the first half of the financial year and the remaining 55 per cent in the second half.
Garyali also said the company expected to meet the guidance despite stricter lending guardrails, while collection efficiency remained above 99.7 per cent. He maintained that the company would continue to prioritise asset quality while pursuing growth.
Credit costs also declined sharply during the quarter. The company reported a 78 per cent year-on-year reduction in credit cost to INR 40 crore, compared with INR 179 crore in the corresponding quarter of the previous year.
Asset quality showed further improvement, with the gross non-performing asset ratio declining to 2.51 per cent in the first quarter from 3.21 per cent in the preceding quarter. The lower NPA ratio, combined with the reduction in credit costs, supported the lender's return to profitability.
The improvement in margins and asset quality comes as Fusion Finance continues to balance growth in disbursements with tighter credit controls. The company’s ability to maintain collection efficiency while reducing NPAs and credit costs will remain important as it targets higher disbursements through the rest of the financial year.
Source PTI
Advertisement
Facebook
Whatsapp
