Are Fusion Finance Ltd latest results good or bad?

Fusion Finance Ltd's latest financial results reveal a complex picture of the company's operational performance and ongoing challenges. The company reported a net loss of ₹22.14 crores for Q2 FY26, which, while a significant reduction from the previous quarter's loss of ₹92.25 crores, still indicates persistent operational difficulties. Over the past four quarters, Fusion Finance has accumulated losses exceeding ₹1,300 crores, raising concerns about its long-term viability. In terms of revenue, the company generated ₹400.82 crores in Q2 FY26, marking a sequential decline of 7.74% from the previous quarter and a substantial year-on-year decrease of 42.04% from ₹691.55 crores in Q2 FY25. This decline reflects a troubling trend, as it represents the seventh consecutive quarter of revenue contraction, highlighting ongoing issues with revenue generation and asset quality. On a more positive note, the operating margin improved to 20.65%, up from 11.03% in the previous quarter, indicating some success in cost management efforts. Additionally, the operating profit before depreciation, interest, and tax (PBDIT) surged to ₹82.75 crores, a marked improvement from the negative ₹192.16 crores recorded in the same quarter last year. Despite these operational improvements, the company continues to face significant challenges, including a deeply negative return on equity of -60.75% and a high debt-to-equity ratio of 3.90, which limits its financial flexibility. The evaluation of Fusion Finance has seen an adjustment, reflecting the ongoing concerns regarding its financial health and operational sustainability. Overall, while there are signs of sequential improvement in certain metrics, the fundamental issues of declining revenue and asset quality remain critical challenges for Fusion Finance Ltd, necessitating careful monitoring of its future performance and strategic direction.