Fusion Finance Q2 Profit Hits Rs 86.48 Crore

Fusion Finance reported a net profit of Rs 86.48 crore for the quarter ended September 30, 2026, compared to a net loss of Rs 22.14 crore in the previous year.

Reader Takeaway: Profitability rebound and increased MSME ticket sizes signal growth, though lending expansion requires careful risk monitoring.

What just happened

Fusion Finance has declared its standalone financial results for the quarter ending September 30, 2026. The company turned profitable, recording a total income of Rs 485.67 crore for the quarter. Furthermore, the Board of Directors approved an upward revision in the MSME lending ticket size limit, moving from Rs 25 lakhs to Rs 50 lakhs.

Why this matters

The return to profitability underscores a significant operational improvement for the lender compared to the same quarter last year. The decision to double the MSME ticket size suggests management is prioritizing growth in this segment, potentially increasing the total addressable market and interest income.

Asset Quality and Ratios

The company reported resilient asset quality as of September 30, 2026. Gross Stage III assets stood at 1.60%, while Net Stage III assets remained low at 0.11%. The firm also maintained a high provision coverage ratio of 93.40% and a robust capital adequacy ratio (CRAR) of 36.75%, suggesting a solid balance sheet buffer for future lending activities. Liquidity remains strong with a coverage ratio of 148.97%.

What to track next

Investors should monitor how the increase in MSME ticket sizes impacts the loan book quality in coming quarters. While the higher limit may drive growth, it also changes the risk profile of the borrower base, which will be a key performance indicator in upcoming filings.