Microfinance Institutions company Fusion Finance announced Q1FY26 results Total income stood at Rs 446 crore in Q1FY26 vs Rs 476 crore in Q4FY25. Net interest income (NII) for Q1FY26 stable at Rs 268 crore vs Q4FY25. Net interest Margin (NIM) increased to 10.29% in Q1FY26 vs 8.57%in Q4FY25. Cost of funds reduced to 10.27% in Q1FY26 vs 10.52% in Q4FY25. Pre-provision Operating Profit stood at Rs 87 crore in Q1FY26 vs Rs 90 crore in Q4FY25. Loss after tax stood at Rs 92 crore in Q1FY26. Sustained Stage 3 provision coverage to ~97% in Q1FY26. Credit cost stood at Rs 178 crore in Q1FY26. Gross NPA was 5.43% in Q1FY26 and Net NPA at 0.19%. Healthy capital adequacy position with CRAR of 29.52 % (post equity infusion). Robust liquidity of Rs 724 crore aggregate of cash and cash equivalents and liquid assets, amounting to 9.76% of the total assets. AUM stands at Rs 7,688 crore as on June 2025. Total loan disbursements stood at Rs 950 crore in Q1FY26. Active borrower base stood at ~Rs 28.5 lakh as of June 2025. 1,560 branches across 22 states, including 3 Union Territories. Devesh Sachdev, Managing Director, Fusion Finance, said: “In Q1FY26, we continued to make progress, moving closer to normalcy. Our strong measures and persistent efforts on the ground have helped us overcome the external and operational hurdles, setting us on a path to recovery. The renewed focus on credit quality and discipline across the sector, along with favourable regulatory steps of lowering the qualifying assets threshold to 60% from 75% will help in ensuring sustainability and future growth.” Sanjay Garyali, Chief Executive Officer, Fusion Finance, said: “We continue to witness improvements in key business and financial parameters, including collection efficiencies, credit costs and GNPA. As we step into the next phase, our focus remains on driving sustainable growth with strong credit checks, tech-led underwriting, and deeper customer engagement. To deepen our relationship with our customers, we have launched differentiated products like Ujala and Sugam loans and are coming up with new products for the MSME segment too. We are well-prepared for the future. We will continue to grow thoughtfully across emerging rural and MSME markets, backed by a strong balance sheet and a culture built on trust and strong execution.” Result PDF