Fusion Finance Ltd (FUSION) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management is confident in further NIM expansion of 15-20 bps next quarter, driven by lower borrowing costs and residual yield hikes, despite external rate pressures.
- The INR 10,000 crore AUM target for FY27 end may be moderated due to Q2 flood disruptions, though growth is now accelerating into the seasonally strong second half.
- Proactive risk management in drought-affected Maharashtra, including halting new customer acquisition, aims to contain impact while growth is pursued in other ring-fenced regions.
Performance Overview
- Achieved annualized Return on Assets (ROA) of approximately 4% ahead of the original timeline, marking a significant profitability milestone.
- Navigated operational disruptions from heavy rainfall and floods across five markets, maintaining collection efficiency of 99.75% and demonstrating portfolio resilience.
- Asset quality showed marked improvement, with Gross NPA declining to 1.6% from 2.5% in the prior quarter, supported by strong collections and recoveries.
- Advanced diversification strategy with the launch of 'Vishwas' premium JLG product, which accounted for 20% of MFI disbursements in September.
- Strengthened liability profile by reducing the marginal cost of borrowing to 9.35%, a 281 bps YoY and 74 bps QoQ improvement.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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