Divya Agarwal
New Delhi [India], May 18: Fusion Finance announced its Q4FY26 and full-year FY26 results, reflecting a strong recovery in operating performance led by sustained improvement in collection efficiency, asset quality, write-off recoveries, and portfolio performance, which led to a sharp reduction in credit costs during the quarter. The Company closed FY26 on a significantly stronger footing, with improving business momentum and a strengthened balance sheet.
- Fusion Finance returned to full-year profitability.
- Continued strengthening in portfolio quality and disciplined growth in disbursements.
- AUM at Rs 7407 crore as of March 2026, growing 8% over the sequential quarter.
- Collection efficiency and recoveries improved significantly, driving lower credit costs and stronger profitability.
Avg. Collection efficiency on portfolio outstanding improved consistently during the year and reached 99.66% in Q4FY26, the highest level over the last several quarters, and the new book, as per tighter guardrails, performed with an avg CE of 99.77% during the quarter. This was achieved by focused recovery efforts, disciplined field execution, and continued customer engagement.
The strengthening in collections translated into a significant improvement in asset quality metrics during the quarter. Gross NPA improved to 3.21% in Q4FY26 from 4.38% in Q3FY26, while Net NPA improved to 0.51% from 0.63% in the previous quarter.
Improved portfolio quality and stable collection trends also resulted in a meaningful reduction in credit costs. Credit cost as per the ECL model for Q4FY26 stood at Rs 56 crore, declining 30% sequentially and 78% year-on-year. Net P&L impact from credit costs reduced to Rs 32 crore during the quarter, compared to Rs 65 crore in Q3FY26 and Rs 247 crore in Q4FY25.
Reflecting the improvement in operating performance, Fusion reported Profit After Tax (PAT) of Rs 114.2crore for Q4FY26, after including the Deferred Tax Asset (DTA) recognition of Rs 76.8 crore during the quarter. Excluding the DTA recognition, profitability improved materially on the back of superior credit costs, improved recoveries, and stable operating performance, with Q4FY26 profit at INR 37.4 Crore. For the full financial year FY26, the company returned to profitability and reported a PAT of Rs 13.9crore.
After multiple quarters of calibrated normalization, Fusion’s Assets Under Management (AUM) grew to Rs 7,407 crore as of March 31, 2026, registering an 8% sequential increase. Quarterly disbursements grew 34% QoQ and 85% YoY to Rs 2,140 crore, reflecting calibrated business momentum alongside continued focus on portfolio quality.
Net Interest Margin (NIM) improved to 11.44% in Q4FY26 from 11.32% in Q3FY26, supported by better portfolio yields, improving asset quality, and lower marginal cost of borrowing.
Commenting on the performance, Mr. Sanjay Garyali, MD & CEO, Fusion Finance Limited, said: “The quarter reflects the steady strengthening of our core operating metrics. Our focused efforts on improving collection efficiency, driving disciplined recoveries, and maintaining prudent underwriting standards have resulted in strong improvement in portfolio quality across the business. The decline in GNPA, NNPA, and credit costs demonstrates the effectiveness of our risk management and execution capabilities. As collection trends stabilize further, we remain focused on pursuing sustainable growth while maintaining portfolio quality and operational discipline.”
Fusion continued to strengthen its pan-India distribution network during the year, with presence across 1,536 branches in 22 states and 3 Union Territories.
