Fusion Finance Ltd · NSE:FUSION
Fusion Finance — Q1 FY26 Earnings Presentation
52 slides from Fusion Finance's earnings presentation, Aug 10, 2025
Slide 1: Exchange submission letter for earnings presentation
Letter No. FFL/SEC/2025-26/SE-51 Date: 10.08.2025 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 Q1 FY26
Investor Presentation Q1 FY26 1 August 10, 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 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 5: Executive Summary
Executive Summary 4 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 6: Executive Summary
Executive Summary Continued improvement in Credit Cost Credit costs sequentially lower for the third consecutive quarter — ₹178 Cr in Q1 FY26 vs ₹253 Cr in Q4 FY25, ₹571 Cr in Q3 FY25, and ₹693 Cr in Q2 FY25. GNPA improved to 5.43% in Q1 FY26 from 7.92% in Q4 FY25, while NNPA declined to 0.19% from
Slide 7: Fusion Finance – Q1'26 Snapshot
Fusion Finance – Q1’26 Snapshot Active Client AUM PPOP NIM 28.5 Lakhs ₹ 7,688 Cr ₹ 87 Cr 10.29% New Client addition ~1.7 L client addition with 35% in cycle 1 Net Worth Disbursement GNPA CRAR ₹ 950 Cr 5.43% 29.52% ₹ 1,943 Cr Total Income NNPA Branches Avg. Ticket Size ₹ 446 Cr 0.19% 1,560 ₹ 53.3 k 6
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 Punjab 49 Haryana 44 Details FY15 FY16 FY24 FY25 Q1FY’26 States 5 9 22 22 22 Jharkhand 67 Districts 38 88 453 497 494 Chhattisgarh 35 Villages 7,289 15,218 1,42,083 1,60,585 1,61,785 Branches 75 173 1,297 1,571 1,560 AUM (₹ Cr) 295 647 11,476 8,980 7,688 Puducherry 1 8 August 10, 2025 |
Slide 10: It's all about People
It’s all about People Experienced Field Team Full-fledged Collection Developing Homegrown Robust Business Team Vertical Talent 85% team engaged in direct Majority of the field Dedicated Collection verticals 70% of the field leadership business across Fusion leadership with 3 years or within MFI and
Slide 11: MFI Business
MFI Business 10 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 12: Strategic actions driving borrower deleveraging
Strategic actions driving borrower deleveraging Timeline / Relationship # Unique to Fusion Fusion+1 Fusion+2 Fusion+ >= 3 Customer Composition* Mar'24 30.9% 19.7% 17.8% 31.5% Mar’25 35.5% 26.8% 19.6% 18.1% June’25 33.3% 27.4% 21.8% 17.6% Fusion Customers* Fusion Customers having MFI Exposure* Timeli
Slide 13: Sustained disbursement momentum
Sustained disbursement momentum Sourced vs Disbursed – MoM Disb Month # Disb. Fusion + 0 Fusion + 1 Approval Rate Disb. (Cr) Jul’25 69,607 28,583 24,153 21.77% 379 Jun’25 63,016 26,776 21,821 17.59% 342 Q1’26 (Avg.) 55,739 24,067 19,243 13.86% 297 Q4’25 (Avg.) 70,371 29,526 22,416 13.15% 354 Disburs
Slide 14: Disbursement Trend
Disbursement Trend QoQ Disbursement – State-wise (₹ Cr.) Contribution % Contribution % State Avg DB Q1'25 Avg DB Q1’26 YoY % Reduction Avg DB Q4'25 DB Jun’25 DB Jul’25 DB – Jun’25 POS – Jun’25 Uttar Pradesh 230 72 69% 94 83 102 24% 24% Bihar 183 59 68% 63 66 69 19% 19% Odisha 119 23 80% 23 29 33 8%
Slide 15: Portfolio Concentration and Market Analysis
Portfolio Concentration and Market Analysis AUM <100 Cr Diversified portfolio concentration aligned with market maturity and expansion potential 14 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 16: The growth approach
The growth approach Tighter, Smarter guardrails→ Better Data Insights → Better customer screening → Portfolio quality improves Credit Strengthening → lower credit cost → Higher returns • Identification of good geography Growth Drivers • ATS Alignment with market • New products - Individual Loan • FT
Slide 17: Sustained improvement in current collections
Sustained improvement in current collections % flow Q2’25 Q3'25 Q4'25 Q1'26 Current to >PAR 0 2.98% 1.80% 0.57% 0.54% • Current → PAR1-30 flow reduced from 2.98% (Q2FY25) to 0.54% (Q1FY26) Current CE% Top 5 State Sep’24 Dec’24 Mar’25 Jun’25 Uttar Pradesh 97.70% 98.16% 98.80% 98.76% Bihar 96.59% 97.1
Slide 18: Collections
1 Collections team now well settled with 80% having vintage >6 months Flow Rates - First bucket onwards 2 Achieved strong client coverage, 80% of POS in the 60–90 DPD bucket managed by field 86.20% 90.93% team – inhouse / external. 78.39% 71.85% 86.64% COLLECTIONS 80.11% 66.76% 3 Identified high pot
Slide 19: Focus on enhancing branch productivity
Focus on enhancing branch productivity June’24 Mar’25 June’25 Branch Vintage (Years) POS POS POS Borrower / Branches Branches Branches Contribution Contribution Contribution Branch <1 Yrs 270 6% 268 9% 173 6% 907 1 - 2 Yrs 106 6% 180 7.9% 264 12% 1278 2 - 3 Yrs 200 15% 121 7.1% 105 6% 1688 > 3 Yrs 7
Slide 20: MSME Business
MSME Business 19 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 21: MSME Product & Portfolio Metrics
MSME || Product & Portfolio Metrics Product Portfolio Mix – As on 30th Jun 2025 FINANCIAL OPERATIONS PORTFOLIO UNDERWRITING ₹ 684* Cr AUM 98 BRANCHES 41.60 % PORTFOLIO LTV 52% APPROVAL RATE ₹ 59 Cr DISBURSEMENT 8 STATES ₹ 4.33 L ATS - PORTFOLIO 78% BOOKING RATE 22.91 % PORTFOLIO ROI (AUM) 20,322** A
Slide 22: Target Market & Product Suite
Target Market & Product Suite Self-employed (informal) Self-employed (formal) Micro enterprises in retail (shops), traders and service providers – Registered Micro enterprises using revenue generating assets mostly informal transactions With credit history, limited financial supported with informal
Slide 23: MSME reach and focused states
MSME reach and focused states Business Portfolio Developm Credit Operations Collection Manager ent Officer Manager Manager Officer Branch Door to Door Underwriting of File logins, Quality Collection Administration, Business sourcing and marketing loan, personal discussion, Check, Daily operations ma
Slide 24: Performance Highlights & Credit Cost
Performance Highlights & Credit Cost 23 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 25: Performance Highlights
Performance Highlights Key Metrics Q1’26 Q4’25 QoQ Q1’25 YoY AUM (₹ Cr) 7,688 8,980 (14)% 12,193 (37)% Disbursement (₹ Cr) 950 1,156 (18)% 2,987 (68)% Total Income (₹ Cr) 446 476 (6)% 707 (37)% NII (₹ Cr) 268 268 n.m. 397 (32)% NIM 10.3% 8.6% 172 Bps 11.6% (135) Bps PPOP (₹ Cr) 87 90 (4)% 298 (71)%
Slide 26: Credit Cost
Credit Cost Particulars Q1 FY26 Q4 FY25 Q1 FY25 FY 25 Opening ECL [A] 887 1,551 355 355 - Provisions as per ECL[B] 178 253 348 1,865 Reversals (on account of write-off) [C] 486 917 58 1,333 Closing ECL [D = A+B-C] 579 887 644 887 Impairment [F] 178 253 348 1,865 Credit Cost (Provisions) / % of Avg.
Slide 27: Vision, Mission & Values
Vision, Mission & Values 26 August 10, 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 August 10, 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: Strong Governance
Strong Governance Environment Social Governance Reducing Environmental Impact Empowering Community & Employees through Responsible business practices through various Initiatives transparency, integrity & accountability • Adherence to IFC exclusion list in • Under 7 CSR programs, 19 activities • 50%
Slide 32: CSR Snapshot Q1'26
CSR || Snapshot Q1’26 7 40+ CSR Programs External Stakeholders 3 125+ SDG’s Covered Employees Participation 1,345+ 7+ Branding & Visibility Lives Touched 12 5 States & UTs Partnership with NGOS 13 3 Districts Aspirational Districts 31 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 33: 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 34: 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 35: Key Strengths & Liability Management
Key Strengths & Liability Management 34 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 36: Key Strengths: Diversification
Key Strengths ||Diversification Network Distribution Top 5 states concentration Rural vs Urban Presence 22 22 22 22 22 1,75 0 22 70% 70% 70% 69% 1,463 1,506 1,571 1,560 68% 94% 94% 94% 94% 94% 1,398 21 1,55 0 20 1,35 0 QoQ 19 1,15 0 18 950 17 750 16 550 15 6% 6% 6% 6% 6% Q1'25 Q2'25 Q3'25 Q4'25 Q1'2
Slide 37: Key Strengths: Agility across business cycles
Key Strengths ||Agility across business cycles AUM Disbursement 140 00 12,193 2,987 11,571 300 0 120 00 10,599 8,980 250 0 QoQ 100 00 800 0 7,688 200 0 1,661 600 0 150 0 1,168 1,156 950 100 0 400 0 500 200 0 0 0 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 AUM Disbursement 10,294 140
Slide 38: 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 350 0 1.2 10.0 8.9 3,017 1.1 1.1 8.0 2,805 2,590 9.0 300 0 0.9 8.0 7.1 250 0 2,175 0.8 7.0 5.7 1,932 4.8 6.0 200 0 QoQ 5.0 4.0 150 0 100 0 3.0 2.0 500 1.0 0 - Q1'25 Q2'25 Q3'
Slide 39: 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) 54.0 53.3 45 39.3 38.3 29.6 36.4 28.6 27.4 40 30 52.0 50.3 31.9 26.1 24.8 35 50.0 30 28.3 25 46.4 47.1 25 QoQ 48.0 46.0 45.2 20 20 15 44.0 15 10 42.0 5 10 0 40.0 Q1'25
Slide 40: Key Strengths: Liability Management
Key Strengths || Liability Management Average Cost of Borrowing Marginal & Average Cost of Borrowing 13.3% 11.2% 14. 0% 11.7% 12. 0% 10.4% 10.3% 10.4% 10.3% 10.3% 11.3% 10.1% 10.1% 12. 0% 10. 0% 10.0% 10.1% 10.3% 10.5% 10.3% 10. 0% 8.0 % 8.0 % 6.0 % 6.0 % YoY 4.0 % QoQ 4.0 % 2.0 % 2.0 % 0.0 % 0.0 %
Slide 41: Key Strengths: Liability Management
Key Strengths || Liability Management 30. 0% Positive ALM (Months) Stable Liquidity Position 23.7 24.2 23.1 25. 0% 22.2 Oct’25 to 18.8 20.4 19.2 Details Jul-25(P) Aug-25(P) Sep-25(P) 18.1 Dec’25(P) 20. 0% 17.6 17.5 14.5 Opening Cash & Equivalents (A) 724 881 936 887 14.1 675 597 601 1,638 15. 0% Loa
Slide 42: Financial Performance
Financial Performance 41 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 43: Profit and Loss Statement
Profit and Loss Statement Profit & Loss Statement (₹ Cr) Q1 FY26 Q4 FY25 QoQ% Q1 FY25 YoY % Revenue from operations - Interest income 421.89 448.68 (6)% 621.28 (32)% - Other revenue from operations 12.54 17.40 (28)% 67.04 (81)% Total revenue from operations 434.43 466.08 (7)% 688.32 (37)% - Other in
Slide 44: Balance Sheet
Balance Sheet Financial Position (₹ Cr) Q1’26 Q4’25 QoQ% Q1’25 YoY % Financial and Non-financial assets - Cash & Other Bank Balances 561.78 783.05 (28)% 1,590.00 (65)% - Bank balances other than cash and cash equivalents 225.20 70.00 222% 60.43 273% - Loans (Net of Impairment Loss Allowance) 6,472.1
Slide 45: Key Ratios
Key Ratios Margin Analysis Cost to Income Opex to Avg. AUM 25. 0% 21.7% 21.5% 20.6% 75.9% 19.1% 19.1% 80. 0% 69.6% 70.8% 12. 0% 20. 0% 70. 0% 10.1% 8.4% 10. 0% 60. 0% 11.6% 7.4% 15. 0% 11.5% 40.4% 8.0 % 6.3% 6.5% 10.3% 10.5% 10.3% 50. 0% 38.4% QoQ 10. 0% 10.1% 10.1% 40. 0% 6.0 % 10.3% 30. 0% 5.0 % 8
Slide 46: Key ratios
Key ratios GNPA CRAR NNPA 35. 00% 3.0 0% 14. 00% 12.58% 29.52% 30. 00% 12. 00% 2.5 0% 2.41% 25.86% 25. 00% 24.39% 10. 00% 9.41% 22.20% 22.42% 2.0 0% 1.71% 7.92% 20. 00% 8.0 0% 1.5 0% 15. 00% 1.25% 6.0 0% 5.46% 5.43% 1.0 0% 10. 00% 4.0 0% 0.5 0% 2.0 0% 5.0 0% 0.30% 0.19% 0.0 0% 0.0 0% 0.0 0% Q1'25 Q2
Slide 47: Stakeholder Management
Stakeholder Management Category Top Share Holders (As on date) Alternate Investment Fund NUVAMA CROSSOVER OPPORTUNITIES FUND 55.20% 55.01% Body Corporate FOUR DIMENSIONS SECURITIES (INDIA) LTD Body Corporate CHARTERED FINANCE & LEASING LIMITED Body Corporate AADI FINANCIAL ADVISORS LLP Body Corporat
Slide 48: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Devesh Sachdev, Promoter, MD & Chairman Ratna Dharashree Vishwanathan, Independent Director • 26+ years of experience in Service/ Financial Services industry • Over 35 years of experience working with the Government of • Holds a Post-Graduate Certifica
Slide 49: Stable & Experienced Management Team
Stable & Experienced Management Team Sanjay Garyali Sunil Mundra Anurag Srivastava Sanjay Mahajan CEO COO-MFI CCO CIO Sushil Menon Sanjay V Deepak Madaan Ankush Ahluwalia CISO Choudhary Company CBO - MFI CRO Secretary & CCO Satish Mani Pooja Mehta Vikas Jajoo Amandeep Singh CVO CHRO Head – Internal
Slide 50: 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 51: 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 52: 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 51 August 10, 2025 | © Fusion Finance Limited | www.fusionfin.com