Fusion Finance's NCDs Rated CARE A (RWN); Long-term Facilities on Watch
Fusion Finance Limited's proposed NCDs worth ₹150 crore have been assigned a CARE A (RWN) rating. Its ₹1,500 crore long-term bank facilities remain on Rating Watch with Negative Implications. The company faces challenges due to covenant breaches on ₹746 crore of borrowings but maintains adequate liquidity. Profitability is expected to improve in H2FY26.
The credit rating announcement impacts the company's borrowing costs and investor confidence. While the NCD rating is a positive step, the ongoing 'Rating Watch with Negative Implications' on long-term facilities suggests continued scrutiny and potential financial risks.
The rating action is neutral as the NCDs have been assigned a rating, but the long-term facilities remain on watch with negative implications due to covenant breaches, indicating a mixed financial outlook.
Fusion Finance Limited has announced that CARE Ratings Limited has assigned a rating of CARE A (RWN) to its proposed Non-Convertible Debentures (NCDs) worth ₹150 crore.
Additionally, the long-term bank facilities of the company, amounting to ₹1,500 crore, continue to be on Rating Watch with Negative Implications (RWN). The rating rationale highlights Fusion's established track record and investor support, including a 35.20% stake held by Warburg Pincus. The company has raised ₹400 crore in the first tranche of its ₹800 crore rights issue and expects the second tranche in December 2025. Tangible net worth stood at ₹1,916 crore as of September 30, 2025.
However, the rating remains on watch with negative implications due to a breach of financial covenants on borrowings totaling ₹2,077 crore as of September 30, 2025. While waivers have been obtained for ₹1,331 crore, waivers for the remaining ₹746 crore are pending. The company maintains adequate liquidity with ₹892 crore in cash and cash equivalents and unavailed credit lines of approximately ₹2,730 crore as of September 30, 2025.
CARE Ratings notes that the auditor's limited review for Q2/H1 FY26 raised concerns about the company's ability to continue as a going concern. Despite these challenges, no lender has demanded immediate repayment or charged penal interest. The company's asset quality has shown some improvement in H1FY26, with GNPA at 4.61%, although write-offs have contributed to this decline. Profitability remains weak, with a net loss of ₹114 crore reported in H1FY26, but CARE Ratings expects profitability to improve in H2FY26.
What to do with a filing like this
Fusion Finance Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Fusion Finance Limited. Read the original for the full detail.