Small Microfinance
Market Cap
₹2,742 ₹2,742 Cr.
P/E
16.27
PEG
0.15
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

The thesis comes alive if MFI AUM recovers, collections remain controlled and MSME secured-loan expansion progresses through the existing branch network.

The bull path combines MFI recovery with faster MSME secured expansion, while the bear path reflects failed MFI recovery, weaker collections, higher credit costs or delayed MSME scaling.

Key Ratios

Debt to Equity
Debt to Equity
2.30
Div Yield (%)
Div Yield (%)
-
Individual < 2 lac
Individual < 2 lac
10.77 %
Institutions
Institutions
20.00 %
Market cap
Market cap
2,742 Cr
No. of Shareholders
No. of Shareholders
68,121
OPM (%)
OPM (%)
35.55 %
PE
PE
16.27
Prom Holding
Prom Holding
53.96 %
ROCE (%)
ROCE (%)
10.61
ROE (%)
ROE (%)
0.56
Sales
Sales
1,714 Cr
  • Fusion Finance
  • Spandana SphoortyFin
  • CreditAccess Grameen
  • TJI Microfinance
Last updated on 25 Sep 2026
  • Fusion Finance is a microfinance lender. Its book is mostly unsecured joint-liability-group loans to rural women, about 90% of assets, plus secured MSME small-business loans.
  • A FY25 microfinance stress cycle brought a ₹1,224Cr loss and pushed gross bad loans to 10.8%. A ₹800Cr rights issue and tightened underwriting followed.
  • Earnings come mainly from the microfinance group-loan book. The secured MSME book, ~₹800Cr against the group book's ~90% share, is the growth vector.
  • The mix is shifting toward secured MSME lending and individual credit for existing microfinance clients, a product launched in Q1FY27 that is still unscaled.
  • Q1FY27 profit came from operations, not deferred-tax release. Pre-tax profit was ~₹62Cr, and credit cost improved for a sixth straight quarter.
  • Capital and liquidity are buffers while the book rebuilds. Capital adequacy is 36.95%, and liquidity stood near ₹1,400Cr early in Q2FY27.
  • Growth restarted but assets, at ₹7,702Cr, sit below the ₹11,476Cr FY24 peak. Management guides ₹10,000Cr by March 2027 with credit cost about 2.5%.
  • Asset quality is the central read. Gross bad loans fell to 2.51% from 3.21% a quarter earlier, but the FY25 loss history leaves upgrades unproven.
  • Credit cost path quarterly through FY27
    management guides ~2.5% with a trajectory toward ~2%. The Q1FY27 charge was ₹40Cr.
  • AUM ramp to ₹10,000Cr due 31 Mar 2027, first read ~early Nov 2026
    the guide implies about 30% growth from the ₹7,702Cr Q1FY27 base.
  • NIM expansion through FY27
    management guides at least +15–20bps by FY27-end, potentially +25–30bps, from 11.93% in Q1FY27.
  • Individual Loans rollout launched Q1FY27, ramp through FY27
    the new individual credit product for existing microfinance clients may reach ~10% of microfinance disbursements over time, per management.
  • MSME mix ramp through FY28–29
    secured MSME loans are guided to 15% of assets next fiscal year and 20% over the two following years, from about 10% now.
Price Range

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Low
137
52W Range
High
243
Timeline

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Forensics

8 Yes

Positive for this company

1 Neutral

Neutral for this company

7 No

Negative for this company

1 No Data

Insufficient data to analyse

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    • Average Ticket Size - NBFC (Ths)

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    FAQs on Fusion Finance Ltd. Business

    Fusion Micro Finance Limited, an NBFC-MFI established in 2010, operates in a Joint Liability Group lending model to support women entrepreneurs in rural and semi-urban areas with financial services and literacy.

    Fusion Finance major competitors are Spandana SphoortyFin, CreditAccess Grameen, Mufin Green Finance, Satin Creditcare Net, Indostar Capital Fin, Arman Financial Serv.
    Market Cap of Fusion Finance is ₹2,781 Crs.
    While the median market cap of its peers are ₹2,556 Crs.

    Fusion Finance seems to be less financially stable compared to its competitors.
    Altman Z score of Fusion Finance is 0.91 and is ranked 4 out of its 7 competitors.

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