Fusion Finance Ltd (FUSION) AI Stock Analysis

• Market Cap: ₹26.71B
• Dividend Yield: N/A
• Average Volume (3M): 38.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -31.94%
• EPS Growth: -1096.32%
• Country: IN
• Employees: 13,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -2.20
• Shares Outstanding: 162,082,280
• 10 Day Avg. Volume: 11,897
• 30 Day Avg. Volume: 38,509
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 1.09
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹180.00 ▲(11.15% Upside)

Fusion Finance Ltd's overall stock score is primarily impacted by its financial performance and valuation challenges. The company's significant net losses and high leverage are major concerns, despite positive revenue growth and cash flow improvements. Technical analysis suggests a neutral to bearish outlook, further weighing on the stock's attractiveness. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Streams

Diversified revenue streams from transaction fees, subscriptions, and asset management provide stability and reduce dependence on a single income source.

Cash Flow Improvement

Improved cash flows enhance liquidity and provide financial flexibility, supporting long-term operational and strategic initiatives.

Technological Focus

Emphasizing technology in fintech solutions positions FUSION to capitalize on digital trends, driving customer engagement and market expansion.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Profitability Challenges

Sustained net losses undermine profitability, impacting the company's ability to reinvest in business growth and maintain investor confidence.

Revenue Decline

Declining revenue growth suggests challenges in market penetration or competition, potentially affecting long-term business viability.

Fusion Finance Ltd Business Overview & Revenue Model

Company Description

Fusion Micro Finance Limited, a non-banking financial company, provides micro finance lending services to women entrepreneurs in rural and semi-urban areas in India. The company offers unsecured and secured business loans, and machinery loans, as well as small value collateral free loans. As of March 31, 2022, it operated through a network of 934 branches. The company was formerly known as Fusion Microfinance Private Limited and changed its name to Fusion Micro Finance Limited in July 2021. Fusion Micro Finance Limited was incorporated in 1994 and is headquartered in Gurugram, India.

How the Company Makes Money

FUSION generates revenue through multiple streams, primarily from transaction fees, subscription services, and asset management fees. The company charges users a nominal fee for transactions conducted through its mobile banking platform, while premium features of its personal finance application are offered through a subscription model. Additionally, FUSION earns income from managing investment portfolios on behalf of clients, collecting a percentage of assets under management as a fee. Strategic partnerships with financial institutions and technology providers further bolster revenues by enabling FUSION to expand its service offerings and reach a broader audience, thus enhancing customer acquisition and retention.

Fusion Finance Ltd Financial Statement Overview

Summary

Fusion Finance Ltd shows mixed financial performance. Revenue growth is positive, but the company faces significant profitability challenges with a net loss of $12.25 billion. High leverage is a concern, though strong cash reserves provide some stability. Improvements in cash flow are encouraging, but overall financial health would benefit from sustained profitability and reduced debt levels.

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	19.23B	21.29B	20.87B	15.90B	10.57B	8.06B
Gross Profit	6.47B	7.97B	9.31B	6.59B	3.59B	2.82B
EBITDA	-12.76B	-11.20B	6.73B	5.20B	306.85M	612.15M
Net Income	-12.81B	-12.25B	5.05B	3.87B	217.55M	439.44M
Balance Sheet
Total Assets	74.25B	82.93B	117.74B	93.64B	72.90B	58.38B
Cash, Cash Equivalents and Short-Term Investments	7.87B	8.88B	16.11B	11.18B	11.58B	13.03B
Total Debt	52.66B	64.02B	86.16B	67.78B	57.76B	44.32B
Total Liabilities	54.81B	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: Negative
• Last Price: 161.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 161.95 is above the 20-day moving average (MA) of 161.35, below the 50-day MA of 166.65, and below the 200-day MA of 172.19, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FUSION.

Fusion Finance Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEOJITFSL	73 Outperform	₹20.23B	17.18	―	1.88%	-11.33%	-40.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFS	66 Neutral	₹20.93B	5.98	―	―	-17.15%	124.47%
TFCILTD	66 Neutral	₹30.25B	26.90	―	0.92%	5.73%	12.29%
PAISALO	65 Neutral	₹30.99B	14.81	―	0.29%	11.75%	-6.52%
MONARCH	64 Neutral	₹23.76B	15.18	―	0.33%	-7.85%	-11.22%
FUSION	48 Neutral	₹26.71B	-1.77	―	―	-31.94%	-1096.32%

Fusion Finance Ltd Corporate Events

Fusion Finance Collects 99% of Rights Issue Call Money; Fully Paid Shares to List on January 6

Fusion Finance Limited has announced the successful completion of the first and final call on its partly paid-up equity shares issued under a rights issue, raising Rs 395.30 crore, representing about 99% of the total amount called. Following receipt of the funds, the company has completed the requisite corporate actions to convert these into fully paid-up equity shares of Rs 10 each, which will commence trading on NSE and BSE from 6 January 2026 under ISIN INE139R01012, strengthening its capital base and potentially enhancing liquidity and investor participation in the stock.

Fusion Finance Closes Trading Window Ahead of December Quarter Results

Fusion Finance Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended 31 December 2025, in compliance with SEBI’s Prohibition of Insider Trading Regulations. The company will communicate the date of the board meeting to consider these results separately in due course, signalling standard governance and disclosure practices ahead of its upcoming financial reporting cycle.

Fusion Finance Cleared in ₹2.84 Crore Tax Credit Dispute

Fusion Finance Limited has announced that the Joint Commissioner, Corporate Circle, Varanasi, Uttar Pradesh, has issued an order dated 20 December 2025 dropping the proceedings under Section 73 of the CGST Act, 2017 related to a previously issued show cause notice over an alleged mismatch in Input Tax Credit. The order, which carries a nil demand, fully withdraws the earlier claim of Rs 2.84 crore (including tax, interest and penalty), resulting in no financial or operational impact on the company and effectively concluding the matter in the company’s favour.

Fusion Finance Announces Postal Ballot Notice Publication

Fusion Finance Limited announced the publication of a newspaper advertisement regarding the dispatch of a Postal Ballot Notice. This move is part of the company’s ongoing communication with its stakeholders, ensuring transparency and engagement in its corporate governance processes. The advertisement was published in Financial Express and Jansatta newspapers and is also available on the company’s website.

Fusion Finance Ltd’s Credit Ratings Revised by ICRA

Fusion Finance Ltd has announced that ICRA Limited, a credit rating agency, has assigned, reaffirmed, and revised the outlook on the company’s credit ratings for different financial instruments. The ratings for the Non-Convertible Debentures (NCD) and Subordinated Debt have been reaffirmed with a stable outlook, indicating improved financial stability and potential positive implications for stakeholders.

Fusion Finance Announces Dispatch of Final Call Notice to Shareholders

Fusion Finance Limited has announced the dispatch of the First and Final Call Notice to shareholders holding partly paid-up equity shares as of the record date, November 11, 2025. This move is part of the company’s strategic financial operations, ensuring compliance with regulatory requirements and enhancing shareholder engagement. The notice was published in major newspapers and is available on the company’s website, reflecting Fusion Finance’s commitment to transparency and effective communication with its stakeholders.

Fusion Finance Schedules Investor Meetings in Mumbai

Fusion Finance Limited has announced a schedule for upcoming meetings with analysts and institutional investors, set to take place on November 18th and 19th, 2025, in Mumbai. These meetings, which will be conducted in-person, are part of the company’s efforts to engage with stakeholders, although no unpublished price-sensitive information will be disclosed during these sessions.

Fusion Finance Releases Q2 FY26 Earnings Presentation

Fusion Finance Limited has released its earnings presentation for the quarter and half-year ending September 30, 2025. The unaudited financial results were approved during a board meeting and are now available on the company’s website. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational strategies, reflecting its commitment to transparency and regulatory compliance.

Fusion Finance Announces Key Financial Decisions and Leadership Change

Fusion Finance Limited announced several key decisions following its board meeting on November 4, 2025. The company approved unaudited financial results for the quarter and half-year ending September 30, 2025, and plans to issue up to 10,000 non-convertible debentures worth INR 100 crore on a private placement basis. Additionally, the board approved the issuance of non-convertible debentures up to INR 1,000 crore. The company also set November 11, 2025, as the record date for the first and final call on partly paid-up equity shares. Furthermore, Mr. Devesh Sachdev resigned as a director, with the board acknowledging his contributions and adjusting the company’s articles of association accordingly. These developments position Fusion Finance for continued growth in its core segments.

Fusion Finance Reports Q2 & H1 FY26 Results and Strategic Initiatives

Fusion Finance Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025. The company has approved the issuance of non-convertible debentures worth up to INR 1,000 crore on a private placement basis, aiming to enhance its capital structure. Additionally, the Board has approved a first and final call on partly paid-up equity shares and noted the resignation of Mr. Devesh Sachdev as Director. With these strategic moves, Fusion Finance is poised to strengthen its market position and drive sustainable growth in its core segments.

Fusion Finance Announces Leadership Change and Debenture Issuance

Fusion Finance Limited announced the resignation of Mr. Devesh Sachdev as a Non-Executive Director, effective November 4, 2025, marking the end of his influential role since the company’s inception. The company also approved the issuance of non-convertible debentures worth up to INR 1,000 crore on a private placement basis, aiming to enhance its financial stability and support future growth initiatives.

Fusion Finance Grants 70,000 ESOPs to Employees

Fusion Finance Limited has announced the approval of 70,000 stock options granted to eligible employees under the Fusion Employee Stock Option Plan 2023. This move, approved by the company’s Nomination and Remuneration Committee, aligns with SEBI regulations and aims to incentivize employees, potentially enhancing employee retention and motivation, which could positively impact the company’s operational efficiency and market position.

Fusion Finance Expands into Insurance with New IRDAI Certification

Fusion Finance Limited has received a Certificate of Registration from the Insurance Regulatory and Development Authority of India, allowing it to operate as a ‘Corporate Agent (Composite)’ under the Insurance Act, 1938. This approval enables the company to solicit insurance products to its customers, potentially broadening its service offerings and strengthening its position in the financial services market.

Fusion Finance Limited Announces Key Director Appointments

Fusion Finance Limited has announced the successful passing of several resolutions through a postal ballot, which includes the appointment of Mr. Sanjay Garyali as a Director and Whole-time Director, Mr. Rajeev Sardana as a Non-Executive Independent Director, and Mr. Hemant Omprakash Mundra as a Non-Executive Director. These appointments, approved by a requisite majority of shareholders, are part of the company’s compliance with SEBI regulations and the Companies Act, 2013, potentially impacting its governance and strategic direction.