Fusion Finance Ltd (FUSION) AI Stock Analysis

• Market Cap: ₹25.58B
• Dividend Yield: N/A
• Average Volume (3M): 38.51K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.83
• Revenue Growth: -31.94%
• EPS Growth: -1096.32%
• Country: IN
• Employees: 13,807
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.40
• Shares Outstanding: 161,365,970
• 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): 0.73
• 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): -3.75
• Revenue Forecast (FY): ₹12.13B

• Rating: 48 Neutral
• Price Target: ₹158.00 ▼(-2.44% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Scale & multi-year revenue growth

A large revenue base that has grown from $7.27B in 2020 to $21.49B provides durable scale for Fusion's credit services. This scale supports diversification across products and geographies, improving fixed-cost absorption and providing a structural runway to work toward sustained profitability as margins recover.

Free cash flow turnaround

A material swing to positive free cash flow ($14.37B) is a structural improvement in liquidity and cash generation. Sustained FCF allows internal funding for operations, debt servicing and reinvestment, reducing reliance on external financing and giving management optionality to execute long-term deleveraging or strategic initiatives.

Substantial cash reserves

Significant cash reserves act as a durable financial buffer for a capital-intensive credit business. They mitigate short-term refinancing risk, support loan loss absorption, and provide time for operational adjustments, enabling the company to navigate credit cycles while pursuing restructuring or margin improvement initiatives.

Negative Factors

High financial leverage

A debt-to-equity ratio near 3.9 indicates structurally elevated leverage for a credit services firm, increasing interest expense sensitivity and refinancing risk. High leverage constrains strategic flexibility, raises default/solvency vulnerability in downturns, and makes sustained deleveraging essential for long-term stability.

Large net losses and negative ROE

A persistent, large net loss ($12.25B) and negative ROE erode capital and limit the company's ability to self-fund growth or absorb credit shocks. Over the medium term this depresses retained earnings, complicates efforts to rebuild profitability, and can necessitate recurring external capital or asset disposals.

Cash flow volatility & earnings quality

Mismatch between operating cash flow and net income and historical variability in cash metrics signal earnings quality issues. For a credit services company, volatile cash flows reduce predictability for loan loss provisioning and capital planning, increasing the long-term risk profile and potentially raising funding costs.

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.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 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 below the 20-day moving average (MA) of 174.47, below the 50-day MA of 177.68, and below the 200-day MA of 176.73, indicating a bearish trend. The MACD of -6.18 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 32.75 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	₹16.69B	40.70	―	1.88%	-11.33%	-40.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	66 Neutral	₹30.10B	23.71	―	0.92%	5.73%	12.29%
PAISALO	65 Neutral	₹31.82B	12.44	―	0.29%	11.75%	-6.52%
MONARCH	64 Neutral	₹21.32B	13.44	―	0.33%	-7.85%	-11.22%
PFS	64 Neutral	₹17.59B	11.02	―	―	-17.15%	124.47%
FUSION	48 Neutral	₹25.58B	45.02	―	―	-31.94%	-1096.32%

Fusion Finance Ltd Corporate Events

Fusion Finance penalised for past board non-compliance, says issue resolved

Fusion Finance Ltd has disclosed that it received an order from the Registrar of Companies, Delhi, imposing a penalty for past non-compliance with Section 152(6) of the Companies Act, 2013, relating to the required number of non-independent directors liable to retire by rotation. The lapse, covering July 20, 2021 to July 8, 2023, resulted in a Rs. 3 lakh penalty on the company and Rs. 1 lakh on its erstwhile managing director, but the firm has been compliant since July 8, 2023 and says the matter is now closed through adjudication.

The company emphasized that the adjudication followed a voluntary, suo-motu application, underscoring its stated commitment to statutory compliance and corporate governance. Management indicated that the financial impact of the penalty is limited and that it is taking steps to strengthen oversight and ensure continued adherence to the Companies Act and other applicable regulations, aiming to reassure investors and regulators of its governance standards.

Fusion Finance seeks SEBI-compliant reclassification of promoter holdings as public

Fusion Finance Limited has applied to Indian stock exchanges BSE and NSE for approval to reclassify certain shareholders from the “promoter and promoter group” category to the “public” shareholder category under SEBI’s Listing Obligations and Disclosure Requirements. The requested reclassification, once cleared and implemented in line with regulatory norms, could alter the company’s shareholding structure and potentially increase its public float, with further procedural steps to follow in due course.

The company has submitted all requisite documents as part of this reclassification request and indicated that the process will continue in compliance with SEBI regulations. This move underscores Fusion Finance’s engagement with governance and disclosure standards, and may have implications for its ownership dynamics, investor perception, and alignment with listing requirements as it refines its shareholder profile.

Fusion Finance moves to reclassify founder family as public shareholders

Fusion Finance Limited has announced that founder Devesh Sachdev and his family have formally requested reclassification of their status from the promoter and promoter group category to public shareholders, following a phased leadership transition in which Sachdev resigned as managing director in September 2025 and left the board in November 2025. The move caps a broader governance overhaul, including shareholder-approved removal of his special rights in January 2026, and is intended to align shareholding classifications with the company’s professionalized management structure, while other key promoter investors retain majority control as the firm proceeds through the required SEBI and shareholder approval process.

The company has already notified stock exchanges of the reclassification request and will next seek board, regulatory, and shareholder approvals under Regulation 31A of the SEBI listing rules. Fusion Finance says the change should clarify its evolved control structure without altering its majority ownership base, underscoring its commitment to corporate governance, transparency, and ongoing communication with lenders and other stakeholders as the process advances.

Fusion Finance Promoter Group Seeks Reclassification as Public Shareholders

Fusion Finance Ltd has disclosed that founder-promoter Devesh Sachdev, along with Mini Sachdev and the Devesh Sachdev Family Trust, has requested reclassification of their combined 2.8% shareholding from the ‘promoter and promoter group’ category to the ‘public’ shareholder category, in line with SEBI Listing Regulations. The proposed change, which will require approvals from the board, shareholders and stock exchanges, signals a formal step away from promoter status and control, potentially altering the company’s ownership profile and governance perception while keeping overall voting power below key regulatory thresholds.

Fusion Finance Schedules Q3 and Nine-Month FY26 Earnings Call for 9 February

Fusion Finance Limited has announced that it will host an earnings conference call on Monday, 9 February 2026, to discuss its financial and business performance for the third quarter and first nine months of FY 2025-26. The call, scheduled from 9:30 a.m. to 10:30 a.m. IST, will feature participation from the managing director and CEO, CFO, COOs for microfinance and MSME businesses, and senior management, underscoring the importance of the update for investors and other stakeholders tracking the company’s operational progress and strategic direction.

Fusion Finance Schedules Investor and Analyst Meets in Mumbai for February 2026

Fusion Finance Limited has announced a schedule of in-person meetings with analysts and institutional investors to be held in Mumbai from 10–13 February 2026 and again on 18–19 February 2026, comprising both one-to-one and group interactions. The company stated that no unpublished price-sensitive information will be shared during these sessions, underscoring its adherence to disclosure norms and regulatory requirements while seeking to strengthen engagement and transparency with the investment community.

Fusion Finance Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Fusion Finance Limited has submitted to the National Stock Exchange of India and BSE Limited a compliance certificate from its Registrar and Share Transfer Agent, MUFG Intime India Private Limited, for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing underscores the company’s ongoing adherence to securities market regulations and depository-related requirements, reinforcing its corporate governance standards and transparency for investors and market regulators.

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.