Financial Results
FUSION · price
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Fusion Finance Limited reported a net loss of INR 92.25 crore for Q1 FY26, wider than the INR 35.62 crore loss in Q1 FY25, as total income fell 36.95% YoY to INR 445.57 crore. Assets under Management dropped to INR 7,688 crore from INR 12,193 crore a year ago, reflecting the company's portfolio downsizing. On the positive side, NIM improved to 10.29% from 8.57% QoQ, Gross NPA fell to 5.43% from 7.92% in Q4 FY25, and CRAR stood at a healthy 29.52% post a rights issue of INR 399.93 crore. Credit cost remained elevated at INR 178 crore. The statutory auditor, B.K. Khare & Co., flagged a material uncertainty on the going concern assumption as the company breached financial covenants on borrowings of INR 3,567 crore.
Shareholders should note the going concern uncertainty flagged by auditors, though management has secured covenant extensions from lenders covering INR 2,570 crore and holds INR 724 crore in liquid assets plus the balance rights issue call money. The loss and shrinking AUM signal continued stress, but improving asset quality metrics (lower GNPA, higher NIM) suggest the company is on a recovery path.