Q1 2026 Fusion Finance Ltd Earnings Call Transcript
Key Points
- Fusion Finance Ltd (NSE:FUSION) has seen a significant decline in credit costs, from INR571 crore in Q3 FY25 to INR178 crore in Q1 FY26, indicating improved financial health.
- The company's GNPA has improved from 7.9% in Q4 FY25 to 5.43% in Q1 FY26, reflecting better asset quality.
- Current bucket collection efficiency has improved to 98.55% from 98.44% in the previous quarter, showcasing enhanced operational efficiency.
- Fusion Finance Ltd has successfully raised INR1,220 crore in fresh funds between January and July 2025, strengthening its liquidity position.
- The company has maintained a strong capital adequacy ratio of 29.52%, ensuring financial stability and lender confidence.
- Operating expenses remain high due to continued investments in field and tech infrastructure, impacting profitability.
- Despite improvements, the cost to income ratio increased slightly to 70.81% from 69.61% in the previous quarter.
- The marginal cost of funds rose to 13.3%, which could pressure net interest margins if not managed effectively.
- The company is still in the process of transitioning leadership roles, which may affect strategic continuity.
- Fusion Finance Ltd's operating model is still adapting to new regulatory guardrails, which may pose short-term operational challenges.
Ladies and gentlemen, good day and welcome to the Fusion Finance Limited Q1FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Smith Shah from Adfactors.
Thank you and over to you, sir.
Yeah, thank you. Good morning, everyone, and thank you for joining us on the Q1 FY26 results conference call of Fusion Finance Limited. We have the company's senior management team with us on this call today.
Before we begin, I would like to remind you that certain statement made in today's discussion may be forward-looking in nature and may involve certain risk and uncertainties. A detailed statement in this regard is available in the Q1FY26 investor presentation that has been uploaded on the stock exchanges and the company website.
I now hand over the call to Mr. Devesh Sachdev, Managing Director, Fusion Finance Limited, to begin the proceeding of this call. Thank you, and over to you, sir.
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