Fusion Finance maintains credit rating, negative outlook persists

Fusion Finance Limited reported on December 17, 2025, that CARE Ratings Limited has assigned a "CARE A (RWN)" rating to its proposed non-convertible debentures (NCD) issue of ₹150 crore. Additionally, the rating for its long-term bank facilities, amounting to ₹1,500 crore, has been continued at "CARE A (RWN)," maintaining a "Rating Watch with Negative Implications." The ratings were assigned and continued on December 16, 2025.

The "Rating Watch with Negative Implications" stems from Fusion Finance being in breach of financial covenants related to its borrowings, totaling ₹2,077 crore as of September 30, 2025. This makes these borrowings repayable on demand. While waivers have been secured for borrowings amounting to ₹1,331 crore, waivers for the remaining ₹746 crore are still pending. Despite this, the company maintains adequate liquidity of ₹892 crore and unavailed sanctioned lines of ~₹2,730 crore as of September 30, 2025, with no lenders having yet triggered accelerated repayment or penal interest.

Fusion Finance's tangible net worth increased to ₹1,916 crore as of September 30, 2025, up from ₹1,638 crore on March 31, 2025, following a ₹400 crore capital infusion from the first tranche of its rights issue. A second tranche of ₹400 crore is anticipated in December 2025. The company's asset quality remains moderate, with gross non-performing assets (NPA) at 4.61% and net NPA at 0.38% as of September 30, 2025, showing improvement from March 31, 2025, primarily due to write-offs.