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Fusion Finance Ltd (IN:FUSION)
:FUSION
India Market
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Fusion Finance Ltd (FUSION) AI Stock Analysis

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IN:FUSION

Fusion Finance Ltd

(FUSION)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
₹193.00
▲(19.17% Upside)
Action:Reiterated
Date:07/02/26
The score is held down primarily by volatile financial performance, elevated leverage, and inconsistent cash flow history, including a sharp profitability drawdown in 2025 and a revenue decline in 2026. Technicals are a meaningful offset with price trading above key moving averages and positive momentum indicators. Valuation contributes negatively because earnings are negative (limiting P/E usefulness) and no dividend yield is available.
Positive Factors
Gross Margin Improvement
The sharp 2026 gross-margin improvement indicates better unit economics or operating efficiency. If sustained, it can provide greater resilience against funding costs, credit losses, and revenue volatility.
Negative Factors
Revenue Contraction
The reversal from earlier growth to a 2026 revenue decline signals weaker business momentum. Sustained contraction could reduce operating leverage, constrain loan-book expansion, and make fixed funding and operating costs harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Improvement
The sharp 2026 gross-margin improvement indicates better unit economics or operating efficiency. If sustained, it can provide greater resilience against funding costs, credit losses, and revenue volatility.
Read all positive factors

Fusion Finance Ltd (FUSION) vs. iShares MSCI India ETF (INDA)

Fusion Finance Ltd Business Overview & Revenue Model

Company Description
Fusion Micro Finance Limited is an Indian non-banking financial institution (NBFI) dedicated to delivering microfinance solutions. It primarily serves women entrepreneurs located in rural and semi-urban parts of India. The company offers a diverse...

Fusion Finance Ltd Financial Statement Overview

Summary
Overall fundamentals are mixed and volatile. Revenue growth reversed with an approximately 10% decline in 2026 after modest 2025 growth, profitability swung from strong profits (2023–2024) to a very large loss (2025) and only a small profit in 2026, leverage remains elevated (debt-to-equity ~2.3x–4.3x historically), and cash flow has improved recently but has been highly inconsistent with sharp year-to-year swings.
Income Statement
54
Neutral
Balance Sheet
46
Neutral
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue17.45B17.32B21.29B20.87B15.90B10.57B
Gross Profit11.90B11.75B7.97B9.31B6.59B3.59B
EBITDA2.91B-533.30M-11.20B6.73B5.20B306.85M
Net Income1.69B138.50M-12.25B5.05B3.87B217.55M
Balance Sheet
Total Assets86.58B82.95B82.93B117.74B93.64B72.90B
Cash, Cash Equivalents and Short-Term Investments19.93B20.05B8.88B16.11B11.18B11.58B
Total Debt58.40B55.71B64.02B86.16B67.78B57.76B
Total Liabilities61.37B58.39B66.49B89.26B70.42B59.53B
Stockholders Equity25.21B24.56B16.43B28.48B23.22B13.38B
Cash Flow
Free Cash Flow0.003.67B14.37B-13.70B-16.71B-16.47B
Operating Cash Flow0.003.68B14.48B-13.50B-16.63B-16.41B
Investing Cash Flow0.008.51B744.00M314.80M178.50M184.83M
Financing Cash Flow0.00-666.30M-22.14B18.43B15.84B14.18B

Fusion Finance Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price161.95
Price Trends
50DMA
208.64
Negative
100DMA
194.44
Positive
200DMA
182.09
Positive
Market Momentum
MACD
-2.81
Positive
RSI
46.32
Neutral
STOCH
59.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FUSION, the sentiment is Neutral. The current price of 161.95 is below the 20-day moving average (MA) of 203.03, below the 50-day MA of 208.64, and below the 200-day MA of 182.09, indicating a neutral trend. The MACD of -2.81 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:FUSION.

Fusion Finance Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
₹61.35B24.390.29%22.60%21.00%
67
Neutral
₹24.43B5.9620.59%225.35%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹35.49B35.215.19%
53
Neutral
₹32.06B19.12-17.20%
53
Neutral
₹13.32B5.8635.80%-5.33%
30
Underperform
₹21.67B-5.75-46.58%78.01%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:FUSION
Fusion Finance Ltd
199.00
24.95
14.33%
IN:MUTHOOTMF
Muthoot Microfin Ltd
208.15
52.35
33.60%
IN:PAISALO
Paisalo Digital Ltd.
67.45
37.39
124.38%
IN:SATIN
Satin Creditcare Network Ltd
222.10
82.30
58.87%
IN:SPANDANA
Spandana Sphoorty Financial Ltd.
244.45
-3.25
-1.31%
IN:UGROCAP
Ugro Capital Limited
86.63
-90.62
-51.13%

Fusion Finance Ltd Corporate Events

RBI Fines Fusion Finance for KYC Lapses; Firm Says Impact Is Immaterial
Aug 15, 2026
Fusion Finance Limited has disclosed that the Reserve Bank of India has imposed a monetary penalty of ₹2.70 lakh following a statutory inspection for FY 2024-25. The violation related to non-compliance with RBI Know Your Customer directions,...
Fusion Finance confirms rights issue proceeds used as planned
Aug 10, 2026
Fusion Finance Ltd has reported that there is no deviation or variation in the use of proceeds from its rights issue of equity shares for the quarter ended 30 June 2026, confirming that all funds have been deployed in line with the objectives outl...
Fusion Finance grants 25,000 stock options under ESOP 2023
Jun 24, 2026
Fusion Finance Limited has approved the grant of 25,000 stock options to eligible employees under its Fusion Employee Stock Option Plan 2023. The options, priced at Rs. 176.77 per share based on the previous day’s NSE closing price, will ves...
Fusion Finance issues final reminder on unpaid rights shares
Jun 18, 2026
Fusion Finance Limited has issued a second and final reminder-cum-forfeiture notice for payment of the first and final call money on 392,088 partly paid-up equity shares that were allotted on a rights basis under a March 29, 2025 letter of offer. ...
Fusion Finance Schedules Mumbai Investor and Analyst Meetings in June 2026
Jun 5, 2026
Fusion Finance Limited has announced that its management will meet a group of investors and analysts in one-to-one and group sessions in Mumbai between June 9 and June 11, 2026, as part of its ongoing investor relations efforts. The company emphas...
Fusion Finance Wins ITAT Ruling as Rs 16.62 Crore Tax Demand Is Scrapped
Jun 2, 2026
Fusion Finance Limited has announced that the Income Tax Appellate Tribunal in New Delhi has dismissed an appeal filed by the Income Tax Officer concerning tax treatment on interest payments to foreign non-convertible debenture holders for assessm...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2026