Microfinance Institutions company Fusion Finance announced Q2FY26 results AUM stood at Rs 7,038 crore as on September 2025. Total loan disbursements stood at Rs 1,298 crore in Q2FY26; increased by 37% QoQ. Active borrower base stood at ~25.8 lakh as of September 2025. 1,545 branches across 22 states including 3 Union Territories. Total income stood at Rs 433 crore in Q2FY26 vs Rs 446 crore in Q1FY26. Net interest income (NII) for Q2FY26 stable at Rs 243 crore vs Rs. 268 crore in Q1FY26. Net Interest Margin (NIM) increased to 10.85% in Q2FY26 vs 10.29% in Q1FY26. Cost of funds stood at 10.35% in Q2FY26 vs 10.27% in Q1FY26. Pre-provision Operating Profit stood at Rs 89 crore in Q2FY26 vs Rs 87 crore in Q1FY26. Loss after tax stood at Rs 22 crore in Q2FY26 vs loss after tax of Rs 92 crore in Q1FY26. Sustained Stage 3 provision coverage to ~92% in Q2FY26. Credit cost stood at Rs 111 crore in Q2FY26 vs Rs 178 crore in Q1FY26. Gross NPA further declined to 4.61% in Q2FY26 from 5.43% in Q1FY26; and Net NPA stood at 0.38%. Healthy capital adequacy position with CRAR of 31.31%. Robust liquidity of Rs 892 crore aggregate of cash and cash equivalents and liquid assets, amounting to 12.58% of the total assets. Sanjay Garyali, MD & CEO, Fusion Finance, said: “Our path to recovery continues, reflected in the sharp reduction in losses, growth in disbursements, and consistent improvement in collection efficiency, credit costs, and GNPA levels. These outcomes demonstrate the strength of our disciplined underwriting practices, tighter operational guardrails, and tech-led processes. We remain focused on driving sustainable growth while maintaining prudent risk management. With overall collection efficiency now at 98.5% and that of the new book at 99.5%, we are building a stronger, more resilient portfolio. In line with our commitment to enhance customer experience, we have made our onboarding process completely paperless. Additionally, with the recent IRDAI approval to operate as a Corporate Insurance Agent, we are now better positioned to offer comprehensive financial solutions beyond lending. Going forward, we aim to grow responsibly across emerging rural and MSME markets.” Result PDF