Fusion Finance shares surge 10% after strong Q2 results

The stock opened at ₹136.00, hit an intraday high of ₹153.50, and ended 8.61 per cent above Monday’s close of ₹132.74

Shares of Fusion Finance Limited surged nearly 10 per cent on the National Stock Exchange on Tuesday, closing at ₹144.17, as investors responded to the microfinance lender’s sharply improved quarterly earnings and a significant reduction in bad loans.

The stock opened at ₹136.00, hit an intraday high of ₹153.50, and ended 8.61 per cent above Monday’s close of ₹132.74. Traded volume was heavy at 152.08 lakh shares, with total traded value of ₹223.73 crore. The company’s total market capitalisation stood at ₹2,334.28 crore at close.

The rally followed the company’s investor presentation for Q2 FY27 — the quarter ended September 30, 2026 — in which Fusion Finance reported a profit before tax of ₹86.5 crore, up 39 per cent from ₹62.4 crore in the previous quarter. The company had reported a loss before tax of ₹22.1 crore in the same quarter last year.

Assets under management grew 14 per cent year-on-year to ₹8,007 crore. Gross non-performing assets improved sharply to 1.60 per cent from 4.61 per cent a year earlier, while net NPA fell to 0.11 per cent. Credit cost dropped 65 per cent year-on-year to ₹39 crore. Net interest margin expanded by 167 basis points to 12.52 per cent, driven by both higher yields and lower borrowing costs.

The Capital Risk Adequacy Ratio stood at a healthy 36.75 per cent, and the company reported liquidity of ₹1,661 crore as of September 30, 2026. Disbursements for the quarter were ₹1,726 crore, up 33 per cent year-on-year, though down 3 per cent sequentially, partly due to floods disrupting operations in five states including Uttar Pradesh, Bihar and Jharkhand.

Despite Tuesday’s sharp move, the stock remains under pressure over longer timeframes. It is down 22 per cent over the past year and about 75 per cent over three years, against a Nifty 50 gain of roughly 24 per cent over the same three-year period. The 52-week high was ₹243.00, hit on July 13, 2026; the 52-week low of ₹126.81 was recorded as recently as October 30, 2026. The stock’s symbol P/E stands at 7.76.

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