Loan disbursements rose 23 percent quarter-on-quarter to ₹1,594 crore, the highest in the last five quarters
The Warburg Pincus-backed company also improved margins and collection efficiency in the December quarter.
Asset quality indicators strengthened during the quarter, with gross NPA declining to 4.38 percent in the December quarter from 4.61 percent in September.
Loan disbursements rose 23 percent quarter-on-quarter to ₹1,594 crore, the highest in the last five quarters, reflecting a gradual recovery in business momentum.
The NBFC reported a profit after tax of ₹14 crore in Q3 FY26, compared to a loss of ₹22 crore in the previous quarter. Barring the one-time impact of ₹7 crore for new labor laws, profitability would have been higher at over ₹21 crore.
Assets under management fell marginally by 2.3 per cent to ₹6,876 crore, underscoring the company’s emphasis on stricter underwriting.
Sanjay Garyali, MD and CEO of Fusion Finance, said the company remained focused on strengthening core fundamentals, maintaining portfolio quality and pursuing calibrated growth.
The improvement of collections in both the overall portfolio and the new book strengthened the resilience of the company’s business model, he added.
Margin performance improved and net interest margin increased to 11.32 percent in the December quarter from 10.85 percent in the previous quarter, helped by lower financing costs and an improvement in portfolio quality.
Credit costs fell sharply from ₹111 crore sequentially to ₹79 crore and supported earnings growth.
The company’s balance sheet remained well capitalized, with a solvency ratio of 39 percent, supported by the recently completed rights issue. Liquidity stood at ₹1,783 crore, comprising cash, cash equivalents and liquid assets, representing 23 per cent of total assets.
Published on February 10, 2026
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