Fusion Finance Ltd · NSE:FUSION

Fusion Finance — Q2 FY26 Earnings Presentation

53 slides from Fusion Finance's earnings presentation, Nov 4, 2025

Slide 1: Exchange submission letter for earnings presentation
Letter No. FFL/SEC/2024-25/SE-77 Date: 04.11.2025 The Manager The Manager Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Bandra Phiroze Jeejeebhoy Towers Kurla Complex, Bandra (E), Mumbai - 400 051 Dalal Street, Mumbai
Slide 2: Investor Presentation Q2 FY26
Investor Presentation Q2 FY26 1 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 3: Disclaimer
Disclaimer By attending the meeting where this Presentation is made, or by reading the Presentation materials, you agree to be bound by the limitations contained herein and to maintain absolute confidentiality regarding the information disclosed in this Presentation. Any failure to comply with these
Slide 4: Presentation Path
PRESENTATION PATH 01 02 03 Executive Overview Our Presence Summary 04 05 06 Vision, Mission Key Financial & Values Strengths Performance 3 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 6: Executive Summary
Executive Summary Continued improvement in Stable Portfolio Quality Measured growth in Credit Costs Disbursements • Credit cost continues to decline for • Net flow forward into PAR0+ • Disbursement grew by 37% in the fourth consecutive quarter, stabilized at 0.5%-0.6% Q2 FY26 to ₹ 1,298 Cr from ₹ dr
Slide 7: Fusion Finance – Q2 FY26 Snapshot
Fusion Finance – Q2 FY26 Snapshot AUM PPOP NIM Active Client ₹ 7,038 Cr ₹ 89 Cr 10.85% 25.77 Lakhs ~2.25 L new loans (~75K new clients) Net Worth Disbursement GNPA CRAR ₹ 1,298 Cr 4.61% 31.31% ₹ 1,918 Cr Total Income NNPA Branches Avg. Ticket Size ₹ 433 Cr 0.38% 1,545 ₹ 54.2 k 6 November 4, 2025 | ©
Slide 8: Key Milestones
Key Milestones Started Expanded operations to Achieved AUM of over Expanded operations operations five states ₹ 1,000 Cr to 18 states 2010 2015 2017 2018 2019 2021 Diversified to 2022 Reached MSME loans 2.2 Mn active IPO clients 2023 2024 2025 Crossed Changed name Rights Issue ₹ 10,000 Cr to Fusion
Slide 9: Our Presence
Our Presence 2 9 44 Details FY24 FY25 Q1 FY26 Q2 FY26 21 43 5 111 299 33 States 22 22 22 22 216 130 67 56 36 Districts 453 497 494 491 35 135 47 Branches 1,297 1,571 1,560 1,545 42 AUM (₹ Cr) 11,476 8,980 7,688 7,038 53 49 1 111 8 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 10: It's all about People
It’s all about People Experienced Field Team Collection Vertical Robust Business Team On ground Leadership Strengthened 85% team engaged in direct Majority of the field Additionally deployed people Strong zonal structure business across Fusion leadership with 3 years or from other functions to creat
Slide 12: Book Composition || Borrower deleveraging
Book Composition || Borrower deleveraging Calculations on Customer Count Unique to Fusion Fusion+1 Fusion+2 Fusion+ >= 3 FY End 24 30.9% 19.7% 17.8% 31.5% FY End 25 35.5% 26.8% 19.6% 18.1% June’25 33.3% 27.4% 21.8% 17.6% Sep’25 34.1% 29.4% 22.6% 13.9% POS contribution of F+>=3 customers is 10.8% in
Slide 13: Prudent accelerating disbursements in less leveraged customers
Prudent accelerating disbursements in less leveraged customers Q3 FY25 (Avg.) Q4 FY25 (Avg.) Q1 FY26 (Avg.) Q2 FY26 (Avg.) Sep’25 Fusion + 0 44% 42% 43% 41% 42% Fusion + 1 32% 32% 35% 34% 34% Fusion + 2 20% 21% 22% 24% 24% Fusion only onboards customers Fusion + 3 4% 5% 0% 0% 0% if they are in curre
Slide 14: Customer Segmentation & Cycle wise ATS
Customer Segmentation & Cycle wise ATS Period → FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Customers ↓ New 46% 44% 53% 40% 33% 24% 25% Existing 54% 56% 47% 60% 67% 76% 75% Calculations on Disbursement values Cycle No Q3 FY25 – ATS (₹) Q4 FY25 – ATS (₹) Q1 FY26 – ATS (₹) Q2 FY26 – ATS (₹) 1
Slide 15: Disbursement || Cycle wise and Lenders association
Disbursement || Cycle wise and Lenders association Q2 FY26 Q1 FY26 Cycle No Fusion Only Fusion+1 Fusion+2 Fusion+>=3 Overall Cycle No Fusion Only Fusion+1 Fusion+2 Fusion+>=3 Overall 1 13% 8% 3% 0% 25% 1 15% 6% 3% 0% 24% 2 14% 12% 10% 0% 36% 2 16% 12% 8% 0% 36% 3+ 13% 14% 12% 0% 39% 3+ 15% 15% 10% 0
Slide 16: Disbursement Trend || Quarterly Avg || State wise
Disbursement Trend || Quarterly Avg || State wise State Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Sep (FY26) Proportion % (Q1 FY26) Proportion % (Sep - FY26) Uttar Pradesh 104 94 72 108 115 24% 27% Bihar 49 63 59 73 76 20% 18% Odisha 21 23 23 35 37 8% 9% Madhya Pradesh 38 36 28 31 31 9% 7% Tamil Nadu 17 17 13
Slide 17: Portfolio Concentration and Market Analysis
Portfolio Concentration and Market Analysis 8 (0.1%) 14 87 (0.2%) (1%) 132 138 (2%) (2%) 294 1,579 154 (5%) (25%) 1,180 (2%) (19%) 141 600 332 156 (2%) (10%) (5%) (3%) 120 6577 (2%) (9%) 96 (1.5%) 127 (2%) 78 161 (1%) (3%) 354 (6%) Diversified portfolio concentration aligned with market maturity and
Slide 18: Sustained improvement in current collections
Sustained improvement in current collections % flow Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Current to >PAR 0 2.98% 1.80% 0.57% 0.54% 0.60% Top 5 State Current CE% Sep’24 Dec’24 Mar’25 Jun’25 Sep’25 Uttar Pradesh 97.70% 98.16% 98.80% 98.76% 98.60% Bihar 96.59% 97.18% 98.11% 98.51% 98.55% Odisha 94.2
Slide 19: Collections
COLLECTIONS Avg. Monthly Flow Rates and 1 Collections team fully stabilized with QoQ bucket movement improved efficiency, driving consistent reduction in PAR flow across buckets Avg. Monthly Flow Rates 90.93% 2 Expanded coverage and digital enablement helped reduce PAR 30 -> 60 from 86.64% in 86.20%
Slide 21: MSME || Product & Portfolio Metrics
MSME || Product & Portfolio Metrics Product Portfolio Mix – As on 30th September 2025 1 FINANCIAL ₹ 708 Cr AUM 2 OPERATIONS 91 BRANCHES 3 PORTFOLIO 42 % PORTFOLIO LTV 4 UNDERWRITING 56% APPROVAL RATE ₹ 79 Cr DISBURSEMENT 8 STATES ₹ 4.5 L ATS - PORTFOLIO 77% BOOKING RATE 23 % PORTFOLIO ROI (AUM) 20,2
Slide 22: MSME - At a Glance
MSME - At a Glance Geographical Presence Branch Distribution Model Branch Sourcing Model Branch Portfolio Self Sourcing Model 91 Manager Direct outreach via Marketing Activities Branch walk-ins Branches Branch Customer Referrals Development across Manager Connector Based Model 8 Business Development
Slide 23: MSME Product and Assessment
MSME Product and Assessment Our Products Credit Assessment Collateral Assessment Secured Business Loan ❑ Assessed & Documented Income ❑ Collaterals in well-connected and Lending for established Model based on Sectoral templated market-accessible regions businesses, backed by guidelines collateral. ❑
Slide 24: Performance Highlights & Credit Cost
Performance Highlights & Credit Cost 23 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 25: Performance Highlights
Performance Highlights Key Metrics Q2 FY26 Q1 FY26 QoQ Q2 FY25 YoY H1 FY26 AUM (₹ Cr) 7,038 7,688 (8)% 11,571 (39)% 7,038 Disbursement (₹ Cr) 1,298 950 37% 1,661 (22)% 2,248 Total Income (₹ Cr) 433 445 (3)% 704 (39)% 878 NII (₹ Cr) 243 268 (9)% 397 (39)% 511 NIM 10.9% 10.3% 56 Bps 11.5% (63) Bps 10.
Slide 26: Credit Cost
Credit Cost Particulars Q2 FY26 Q1 FY26 Q2 FY25 FY 25 H1 FY26 Opening ECL [A] 579 887 644 355 887 - Provisions as per ECL[B] 111 178 693 1,865 289 Reversals (on account of write-off) [C] 246 486 196 1,333 732 Closing ECL [D = A+B-C] 444 579 1,141 887 444 Impairment [F] 111 178 693 1,865 289 Credit C
Slide 27: Vision, Mission & Values
Vision, Mission & Values 26 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 28: Vision, Mission & Values
Vision, Mission & Values Vision: “Fusion Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to transform the quality of Mission: their lives.” “A self-sustainable financial institution which leverages the distribution network to ch
Slide 29: Tech Capabilities & ESG
Tech Capabilities & ESG 28 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 30: Tech Interventions
Tech Interventions||Strengthening compliance, reducing fraud, and enabling seamless digital onboarding AI/ML-Driven Credit Aadhaar-Based Operations Verification Intelligent KYC validation and Integrated with government live face recognition database for live ID, name, and Automated credit decisionin
Slide 31: End-to-End Digital Solutions || LIR, AI & Onboarding
End-to-End Digital Solutions || LIR, AI & Onboarding AI agents and automation Improving contactability and collections through automated calls, WhatsApp, SMS, and IVR. It Digital Onboarding / Digital Loan Information reduces roll-forward risk and Q-sign Receipt captures customer issues for better en
Slide 32: ESG Policy: Aspiring to become a responsible Financial Institution
ESG Policy : Aspiring to become a responsible Financial Institution Environment Social Governance Reducing Environmental Impact Empowering Community & Employees through Responsible business practices through various Initiatives transparency, integrity & accountability • Adherence to IFC exclusion li
Slide 33: CSR || Snapshot till Q2 FY26
CSR || Snapshot till Q2 FY26 15 310+ CSR Programs Got./Key officials 5 500+ SDG’s Covered Employees Volunteering 31,104+ 30+ Branding & Visibility Lives Touched 21 9 States & UTs Partnership with NGOS 105 17 Districts Aspirational Districts 32 November 4, 2025 | © Fusion Finance Limited | www.fusion
Slide 34: Risk Governance
Risk Governance Board of Directors Board Risk Management Board Risk Management Committee (BRMC) Committee Board Level Committee chaired by independent director Approves Risk Management Policies & Framework Management Risk Quarterly review of the Organizational Risk environment Committee Comprehensiv
Slide 35: Internal Audit Structure
Internal Audit Structure FRAMEWORK STRUCTURE Board of Directors MD & CEO Audit Philosophy No surprise environment Consultative role Board Audit Committee Chief Internal Board Auditor Audit Committee chaired by Independent Director Majority of Committee members are independent Corporate Office Audit
Slide 36: Key Strengths & Liability Management
Key Strengths & Liability Management 35 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 37: Key Strengths || Diversification
Key Strengths ||Diversification Network Distribution Top 5 states concentration Rural vs Urban Presence 94% 94% 94% 94% 94% 100 % 22 22 22 22 22 70% 70% 90% 1,59 0 1,571 69% 1,57 0 1,560 1,545 20 68% 80% 1,55 0 68% 70% 60% 15 1,506 1,53 0 QoQ 50% 1,51 0 10 40% 1,463 1,49 0 30% 1,47 0 1,45 0 5 20% 1,
Slide 38: Key Strengths || Agility across business cycles
Key Strengths ||Agility across business cycles AUM Disbursement 11,571 1,661 10,599 8,980 1,298 7,688 1,168 1,156 7,038 950 QoQ Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 AUM Disbursement 11,476 10,294 9,296 8,980 8,596 7,038 6,971 6,786 6,180 YoY 4,638 3,710 2,2
Slide 39: Key Strengths || Agility across business cycles
Key Strengths || Agility across business cycles For MFI Vertical only AUM/ RO (₹ in Cr) AUM/Branch (₹ in Cr) Borrower/ Branch 1.1 1.1 8.0 2,805 2,590 7.1 0.9 2,175 0.8 0.8 5.7 1,932 4.8 1,759 4.4 QoQ Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 F
Slide 40: Key Strengths || Operational Prudence
Key Strengths ||Operational Prudence For MFI Vertical only Avg. Ticket Size (₹ in K) Borrowers (in Lacs) Avg. OS / Borrower (₹ in K) 53.3 54.2 28.6 50.3 38.3 45.2 47.1 36.4 27.4 31.9 28.3 26.1 25.6 QoQ 24.8 24.8 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25
Slide 41: Key Strengths || Liability Management
Key Strengths || Liability Management Average Cost of Borrowing Marginal & Average Cost of Borrowing 13.3% 12.9% 11.2% 11.7% 10.0% 11.3% 10.4% 10.3% 10.4% 10.3% 10.3% 10.1% 10.5% 10.3% 10.3% 10.3% YoY QoQ FY 21 FY 22 FY 23 FY 24 FY 25 H1 FY26 Q2FY'25 Q3FY'25 Q4FY'25 Q1FY26 Q2FY26 Avg Cost of Borrowi
Slide 42: Key Strengths || Liability Management
Key Strengths || Liability Management Positive ALM (Months) Stable Liquidity Position 24.2 Jan’26 to 23.7 23.1 23.7 Details Oct-25(P) Nov-25(P) Dec-25(P) 22.2 Mar’26(P) 20.4 19.2 18.8 17.5 Opening Cash & Equivalents (A) 892 959 1,005 930 17.6 14.5 14.6 Loan Recovery [Principal + Interest] (B)* 615 5
Slide 44: Profit and Loss Statement
Profit and Loss Statement Profit & Loss Statement (₹ Cr) Q2 FY26 Q1 FY26 QoQ% Q2 FY25 YoY% 6M FY 26 6M FY 25 YoY % Revenue from operations - Interest income 380.80 421.89 (10)% 626.08 (39)% 802.69 1,247.36 (36)% - Other revenue from operations 34.99 20.39 72% 70.37 (50)% 55.38 143.15 (61)% Total rev
Slide 45: Balance Sheet
Balance Sheet Financial Position (₹ Cr) Q2 FY26 Q1 FY26 QoQ % Q2 FY25 YoY % Financial and Non-financial assets - Cash & Other Bank Balances 809.89 561.78 44% 1,793.06 (55)% - Bank balances other than cash and cash equivalents 168.21 225.20 (25)% 57.50 193% - Loans (Net of Impairment Loss Allowance)
Slide 46: Key Ratios
Key Ratios Margin Analysis Cost to Income Opex to Avg. AUM 21.5% 20.6% 21.2% 11.4% 19.1% 19.1% 75.9% 69.6% 70.8% 70.2% 10.1% 8.4% 7.4% 6.5% 10.1% 10.3% 10.5% 10.3% 10.3% 38.4% 40.4% QoQ 11.5% 10.9% 10.3% 8.9% 8.6% Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FYF26 Q1FY'25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY
Slide 47: Key ratios
Key ratios GNPA CRAR NNPA 12.58% 31.31% 29.52% 2.41% 24.39% 9.41% 22.20% 22.42% 7.92% 1.71% 5.43% 4.61% 0.38% 0.30% 0.19% Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 46 November 4, 2025 | © Fusion Finance Limited | www.fusio
Slide 48: Stakeholder Management
Stakeholder Management Category Top Share Holders (As on date) Mutual Fund HDFC MUTUAL FUND 55.20% 54.95% Foreign Institutional Investor INDIA CAPITAL FUND LIMITED Mutual Fund ICICI PRUDENTIAL BANKING AND FINANCIAL SERVICES FUND Mutual Fund NIPPON LIFE INDIA TRUSTEE LTD Body Corporate NIPPON LIFE IN
Slide 49: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Sanjay Garyali, MD and CEO Devesh Sachdev, Founder and Director • 28+ years of expertise in retail financial markets and a deep • 26+ years of experience in Service/ Financial Services industry understanding of the key drivers in the sector. Prior to j
Slide 50: The Management Team
The Management Team Sunil Mundra Sanjay Mahajan Anurag Srivastava Nishant Monga COO-MFI CIO CCO Chief Compliance Officer Sushil Menon Sanjay V Jitender Sharma Ankush Ahluwalia CISO Choudhary Deputy COO– CBO - MFI CRO MSME Satish Mani Pooja Mehta Gautam Munjal Amandeep Singh CVO CHRO Head – Internal
Slide 51: Abbreviations
Abbreviations AUM Asset Under Management Cr Crore PAT Profit After Tax L Lakh NIM Net Interest Margin Mn Million ROE Return on Equity K Thousand ROA Return on Assets FY Financial Year ECL Expected Credit Loss Bps Basis points CRAR Capital Risk Adequacy Ratio H Half Yearly GNPA Gross Non-Performing A
Slide 52: Definitions
Definitions • AUM represents the aggregate of principal outstanding for all loans including the assigned portfolio as of the last day of the relevant period/year • Net Interest Income represents interest income on loan portfolio for the relevant period/year reduced by finance costs for such period/y
Slide 53: Thank You
THANK YOU For Investor queries contact investor.relations@fusionfin.com Adfactors PR Investor Relations Aashvi Shah aashvi.shah@adfactorspr.com Smit Shah smit.shah@adfactorspr.com 52 November 4, 2025 | © Fusion Finance Limited | www.fusionfin.com

Fusion Finance — Q2 FY26 Earnings Presentation on 6ix

Fusion Finance — Q2 FY26 Earnings Presentation

Slide 1: Exchange submission letter for earnings presentation

Slide 2: Investor Presentation Q2 FY26

Slide 3: Disclaimer

Slide 4: Presentation Path

Slide 5: Executive Summary

Slide 6: Executive Summary

Slide 7: Fusion Finance – Q2 FY26 Snapshot

Slide 8: Key Milestones

Slide 9: Our Presence

Slide 10: It's all about People

Slide 11: MFI Business

Slide 12: Book Composition || Borrower deleveraging

Slide 13: Prudent accelerating disbursements in less leveraged customers

Slide 14: Customer Segmentation & Cycle wise ATS

Slide 15: Disbursement || Cycle wise and Lenders association

Slide 16: Disbursement Trend || Quarterly Avg || State wise

Slide 17: Portfolio Concentration and Market Analysis

Slide 18: Sustained improvement in current collections

Slide 19: Collections

Slide 20: MSME Business

Slide 21: MSME || Product & Portfolio Metrics

Slide 22: MSME - At a Glance

Slide 23: MSME Product and Assessment

Slide 24: Performance Highlights & Credit Cost

Slide 25: Performance Highlights

Slide 26: Credit Cost

Slide 27: Vision, Mission & Values

Slide 28: Vision, Mission & Values

Slide 29: Tech Capabilities & ESG

Slide 30: Tech Interventions

Slide 31: End-to-End Digital Solutions || LIR, AI & Onboarding

Slide 32: ESG Policy: Aspiring to become a responsible Financial Institution

Slide 33: CSR || Snapshot till Q2 FY26

Slide 34: Risk Governance

Slide 35: Internal Audit Structure

Slide 36: Key Strengths & Liability Management

Slide 37: Key Strengths || Diversification

Slide 38: Key Strengths || Agility across business cycles

Slide 39: Key Strengths || Agility across business cycles

Slide 40: Key Strengths || Operational Prudence

Slide 41: Key Strengths || Liability Management

Slide 42: Key Strengths || Liability Management

Slide 43: Financial Performance

Slide 44: Profit and Loss Statement

Slide 45: Balance Sheet

Slide 46: Key Ratios

Slide 47: Key ratios

Slide 48: Stakeholder Management

Slide 49: Highly Experienced Board with Strong Governance

Slide 50: The Management Team

Slide 51: Abbreviations

Slide 52: Definitions

Slide 53: Thank You