Q2 2026 Fusion Finance Ltd Earnings Call Transcript
Key Points
- Fusion Finance Ltd (NSE:FUSION) reported a significant improvement in credit quality, with gross NPA declining to 4.6% from 5.5% in the previous quarter.
- The company achieved a 37% sequential increase in disbursements, reaching 1,298 crore in Q2.
- Collection efficiency improved to 98.5%, with the new book achieving 99.5% efficiency.
- The company successfully reduced its manpower from 15,400 to 13,600, demonstrating productivity gains and process efficiency.
- Fusion Finance Ltd received approval for a corporate agency license, enabling the development of more diverse and customized products for customers.
- The company faced challenges in raising incremental funds due to industry-wide stress, impacting marginal cost of funds.
- There was a slight increase in the net flow rate from 0.54% to 0.6%, indicating some pressure on collections.
- The company had to manage covenant breaches with lenders, although most waivers have been received.
- Despite improvements, the cost-to-income ratio remained high at 70.2%, driven by a reduction in AUM.
- The company is still in the process of addressing write-offs and recoveries, with significant efforts required to clean up the book in the next few quarters.
Ladies and gentlemen, good day and welcome to Fusion Finance Limited, Q2 and S1F526 post-results earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing, then 0 on your touchstone phone.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Smithshaw.
Thank you and over to you, sir.
Thank you. Good morning, everyone, and thank you for joining us on the Q2 and H1 526 earnings 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 risks and uncertainties. A detailed statement in this regard is available in the Q2 and H1 FI26
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