Revenue and Profitability Trends
Over the five-year period ending March 2025, Fusion Finance’s net sales demonstrated a robust upward trend, increasing from ₹855.81 crores in 2021 to ₹2,319.76 crores in 2025. This represents a near threefold growth, with the most notable jump occurring between 2022 and 2023, where sales surged from ₹1,151.27 crores to ₹1,741.92 crores. Despite this impressive top-line expansion, the company’s profitability has been volatile. Operating profit before depreciation and interest (PBDIT) excluding other income swung from a modest positive ₹43.40 crores in 2021 to a significant loss of ₹1,170.47 crores in 2025. The operating profit margin mirrored this volatility, peaking at 26.48% in 2023 before plunging to a negative 50.46% in 2025.
Profit after tax (PAT) followed a similar pattern, rising from ₹43.94 crores in 2021 to ₹505.29 crores in 2024, before sharply declining to a loss of ₹1,224.54 crores in 2025. Earnings per share (EPS) reflected these swings, moving from a positive ₹5.32 in 2021 to a negative ₹117.85 in 2025. The PAT margin also deteriorated from a positive 5.13% in 2021 to a negative 52.79% in 2025, underscoring the challenges faced in maintaining profitability despite revenue growth.
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Cost Structure and Expenses
Fusion Finance’s cost profile reveals a substantial increase in employee costs and other expenses over the years. Employee costs rose from ₹168.64 crores in 2021 to ₹573.24 crores in 2025, reflecting either workforce expansion or wage inflation. Other expenses more than quadrupled from ₹643.77 crores in 2021 to ₹2,916.99 crores in 2025, significantly impacting the total expenditure which escalated from ₹812.41 crores to ₹3,490.23 crores in the same period. These rising costs have contributed to the negative operating margins and overall losses in the latest fiscal year.
Balance Sheet and Financial Position
The company’s balance sheet shows a considerable increase in total liabilities, rising from ₹1,207.52 crores in 2017 to ₹8,292.67 crores in 2025. Total debt, primarily short-term borrowings, expanded from zero in 2017 to ₹6,402.02 crores in 2025, indicating a growing reliance on external financing. Shareholders’ funds increased from ₹222.54 crores in 2017 to ₹1,643.33 crores in 2025, but the book value per share declined from ₹274.18 in 2024 to ₹158.15 in 2025, reflecting the impact of losses on net worth.
Non-current assets remained relatively stable, with net block assets increasing modestly to ₹18.33 crores in 2025. However, net current assets were negative throughout, reaching a deficit of ₹5,775.86 crores in 2025, signalling liquidity pressures. Cash and bank balances decreased from ₹1,553.19 crores in 2024 to ₹853.05 crores in 2025, further highlighting cash management challenges.
Cash Flow Analysis
Cash flow from operating activities showed a dramatic turnaround, moving from negative ₹1,350 crores in 2024 to a positive ₹1,447 crores in 2025. This improvement was driven by adjustments and changes in working capital, which swung from a large negative in prior years to a positive ₹881 crores in 2025. Despite this, net cash outflow for the year was ₹691 crores, largely due to significant cash used in financing activities amounting to ₹2,213 crores, reflecting debt repayments or other financing outflows. Investing activities contributed a modest positive cash flow of ₹74 crores in 2025.
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Summary and Outlook
In summary, Fusion Finance has experienced strong revenue growth over the last five years, nearly tripling its sales. However, this growth has been accompanied by rising costs, volatile profitability, and increasing debt levels. The sharp decline in profitability and negative margins in the latest fiscal year raise concerns about operational efficiency and financial sustainability. While the company’s cash flow from operations improved significantly in 2025, the overall net cash outflow and negative net current assets suggest ongoing liquidity challenges.
Investors should weigh the company’s impressive top-line expansion against its recent losses and balance sheet pressures. The historical performance indicates a need for careful monitoring of cost control measures and debt management strategies to ensure long-term value creation.
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