Fusion Finance Ltd (FUSION) AI Stock Analysis

• Market Cap: ₹30.12B
• Dividend Yield: N/A
• Average Volume (3M): 30.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -17.87%
• EPS Growth: -461.29%
• Country: IN
• Employees: 13,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -7.90
• Shares Outstanding: 162,082,280
• 10 Day Avg. Volume: 22,479
• 30 Day Avg. Volume: 30,960
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹176.00
• Price Target Upside: -5.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ₹176.00 ▼(-5.63% Downside)

Fusion Finance Ltd's stock score is primarily influenced by its mixed financial performance, with revenue growth offset by profitability challenges and high leverage. Technical indicators suggest caution due to potential resistance and overbought signals. Valuation is a concern due to negative earnings and lack of dividends.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams, including asset management, advisory services, and fintech solutions, provide stability and adaptability to market changes, supporting long-term growth and resilience.

Cash Flow Improvement

The turnaround in free cash flow indicates improved liquidity management, providing a buffer for operations and potential investments, enhancing long-term financial health.

Strong Cash Reserves

Substantial cash reserves offer a financial cushion, enabling the company to navigate economic uncertainties and invest in growth opportunities, bolstering long-term stability.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt, which can strain financial flexibility and increase risk, potentially impacting long-term sustainability if not managed effectively.

Profitability Challenges

The negative net profit margin highlights significant profitability challenges, which could hinder the company's ability to reinvest in growth and maintain competitive positioning over time.

Revenue Decline

The decline in revenue growth suggests potential market share loss or demand issues, which could undermine long-term growth prospects if not addressed through strategic initiatives.

Fusion Finance Ltd Business Overview & Revenue Model

Company Description

Fusion Finance Ltd (FUSION) is a dynamic financial services company specializing in investment management, financial advisory, and fintech solutions. Operating within the finance and technology sectors, FUSION offers a diverse range of products and services designed to help individuals and businesses manage their financial portfolios effectively. The company leverages cutting-edge technology to provide innovative solutions that cater to the evolving needs of its clients, ensuring they achieve their financial goals with precision and ease.

How the Company Makes Money

Fusion Finance Ltd generates revenue through multiple streams. Primarily, the company earns income via asset management fees charged to clients based on the size and performance of their investment portfolios. Additionally, FUSION offers financial advisory services, for which it charges consultancy fees. The company also develops and licenses fintech solutions, providing software and tools to other financial institutions and individual clients, generating revenue through subscription and licensing fees. Strategic partnerships with banks and financial institutions further enhance its earning potential by expanding its client base and access to new markets. These diversified revenue streams enable FUSION to maintain a steady income flow while adapting to market changes and client needs.

Fusion Finance Ltd Financial Statement Overview

Summary

Fusion Finance Ltd shows moderate revenue growth, but profitability is under pressure with a significant net loss. High leverage is a risk, though strong cash reserves provide some stability. Cash flow improvements are encouraging, but overall financial health needs sustained profitability and reduced debt.

Income Statement

Fusion Finance Ltd shows moderate revenue growth over the years, with current revenues at $21.49 billion, up from $7.27 billion in 2020. However, the net profit margin has turned negative, with a net loss of $12.25 billion in the latest year, indicating significant profitability challenges. Gross profit margin is healthy but has declined from earlier periods, reflecting pressures on cost control or pricing. EBIT and EBITDA margins are reasonable, but the negative net income is concerning for long-term sustainability.

Balance Sheet

The company's balance sheet shows a high level of debt, with a debt-to-equity ratio of approximately 3.9, indicating high leverage. The equity ratio stands at about 19.8%, reflecting significant reliance on debt financing. Return on equity has turned negative due to recent losses. Despite high leverage, the company maintains substantial cash reserves, which could provide a buffer against financial instability.

Cash Flow

Fusion Finance Ltd has shown improvement in cash flows, with a positive free cash flow of $14.37 billion in the latest year, compared to negative free cash flow in previous years. The operating cash flow to net income ratio indicates that cash inflows are not aligned with net earnings, but the turnaround in free cash flow is a positive sign for liquidity management. However, the variability in cash flow metrics over the years suggests potential volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.19B	21.49B	20.87B	15.90B	10.57B	8.06B
Gross Profit	4.70B	7.32B	9.31B	6.59B	3.59B	2.82B
EBITDA	3.15B	5.29B	6.73B	5.20B	43.81M	612.15M
Net Income	-9.20B	-12.25B	5.05B	3.87B	217.55M	439.44M
Balance Sheet
Total Assets	82.93B	82.93B	117.74B	93.64B	72.90B	58.38B
Cash, Cash Equivalents and Short-Term Investments	8.53B	8.53B	15.53B	10.65B	11.58B	13.03B
Total Debt	64.02B	64.02B	86.16B	67.78B	57.76B	44.32B
Total Liabilities	66.49B	66.49B	89.26B	70.42B	59.53B	45.92B
Stockholders Equity	16.43B	16.43B	28.48B	23.22B	13.38B	12.46B
Cash Flow
Free Cash Flow	5.57B	14.37B	-13.70B	-16.71B	-16.47B	-8.01B
Operating Cash Flow	5.59B	14.48B	-13.50B	-16.63B	-16.41B	-7.93B
Investing Cash Flow	6.83B	744.00M	314.80M	178.50M	184.83M	95.58M
Financing Cash Flow	-22.44B	-22.14B	18.43B	15.84B	14.18B	14.59B

Fusion Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 186.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FUSION, the sentiment is Positive. The current price of 186.5 is above the 20-day moving average (MA) of 170.41, above the 50-day MA of 172.08, and above the 200-day MA of 168.93, indicating a bullish trend. The MACD of 3.42 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FUSION.

Fusion Finance Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFCILTD	73 Outperform	₹33.41B	30.66		0.82%	7.91%	16.21%
GEOJITFSL	72 Outperform	₹20.91B	13.55		1.97%	4.68%	-12.79%
Sector *	68 Neutral	$18.00B	11.42	9.93%	3.81%	9.73%	1.22%
MONARCH	66 Neutral	₹25.66B	16.02		0.15%	6.10%	-6.37%
PFS	64 Neutral	₹23.94B	7.74		3.20%	-17.16%	83.67%
PAISALO	60 Neutral	₹34.27B	16.61		0.26%	13.28%	-6.07%
FUSION	52 Neutral	₹30.12B	―		―	-17.87%	-461.29%

Fusion Finance Ltd Corporate Events

Fusion Finance Approves Allotment of Partly Paid-Up Equity Shares

Fusion Finance Limited has announced the approval of the allotment of 6,10,58,392 partly paid-up equity shares at a price of Rs. 131 per share as part of its rights issue. This move is part of the company’s strategy to raise capital, with the balance amount payable in subsequent calls, and is expected to enhance the company’s equity share capital significantly, impacting its market positioning and providing additional resources for growth.