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Fusion Finance Sees Strong Turnaround in Q4FY26 and FY26 Performance

Fusion Finance, a leading financial services company, reported a significant turnaround in its Q4FY26 and full-year FY26 performance on Tuesday, 19 May. The company's share price surged 5% from the day's intraday low, driven by improving collection efficiency, better asset quality, stronger recoveries, and lower credit costs.

The company posted a Profit After Tax (PAT) of ₹114.2 crore for Q4FY26, which includes the recognition of a Deferred Tax Asset (DTA) of ₹76.8 crore. Excluding the DTA impact, quarterly profit stood at ₹37.4 crore, reflecting improvement in core operating performance driven by lower credit costs and stable business operations. For the full year FY26, the company returned to profitability with a PAT of ₹13.9 crore.

Improved Collection Efficiency and Asset Quality

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The company reported a notable improvement in collection efficiency, with the portfolio outstanding reaching 99.66% in Q4FY26, the highest level seen in several quarters. The new loan book, built under tighter underwriting norms, recorded an average collection efficiency of 99.77% during the quarter. Enhanced collections resulted in a significant improvement in asset quality, with Gross NPA decreasing to 3.21% in Q4FY26 from 4.38% in the prior quarter, while Net NPA improved to 0.51% from 0.63%.

Decline in Credit Costs and Improved Net Interest Margin

Fusion Finance also reported a significant decline in credit costs. Under the Expected Credit Loss (ECL) model, credit costs dropped by 30% sequentially and 78% year-over-year to ₹56 crore in Q4FY26. The effect on net P&L from credit costs reduced to ₹32 crore, compared to ₹65 crore in Q3FY26 and ₹247 crore in Q4FY25. The Net Interest Margin (NIM) improved from 11.32% in Q3FY26 to 11.44% in Q4FY26, aided by better portfolio yields, enhanced asset quality, and reduced borrowing expenses.

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Business Momentum and Asset Under Management

The Assets Under Management (AUM) reached ₹7,407 crore as of 31 March 2026, an 8% increase from the previous quarter. Quarterly disbursements rose by 34% quarter-on-quarter and 85% year-on-year to ₹2,140 crore, demonstrating enhanced business momentum alongside a sustained emphasis on portfolio quality.

Share Price and Analyst Insights

Fusion Finance share price today opened at ₹182.90 per share on the BSE, touched an intraday high of ₹186.40 per share, and an intraday low of ₹177.40 per share. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that the company's share price is showing some strength after a sharp crack on Monday (18 May) and is placed around a crucial long-term support of 89ema and 200dsma, with 175-170 remaining a strong support and 200 as the immediate resistance. In the near term, prices are likely to remain within a 170-200 range.