Fusion Finance lifts operating margin to 49.15% in Q2FY27
Revenue grew faster than expenses, while profit growth was not dependent on other income and the tax rate stayed at 0.00%.
Filed 02 Nov 2026, 17:32 IST · after market close · Fusion Finance Ltd (FUSION)
Key takeaways
- Standalone operating margin expanded 2.48 percentage points quarter on quarter to 49.15% as revenue grew +5.99% while expenses rose +1.06%.
- Net profit increased +38.57% quarter on quarter to EPS of Rs 5.35, with interest up only +0.45% and the tax rate unchanged at 0.00%.
- Fusion Finance's 49.15% operating margin was 4.33 percentage points below the 53.48% median for 68 reporting Financial Services peers.
Price around the results
Revenue growth outpaced costs
The standalone business delivered quarter-on-quarter revenue growth of +5.99%, while expenses increased only +1.06%. That spread helped operating profit rise +11.62% and widened operating margin by 2.48 percentage points to 49.15%. This was the first comparison available in the reported trend, against Q1FY27.
Profit growth had limited non-operating support
Profit before tax and net profit both increased +38.57% quarter on quarter, while interest expense rose just +0.45%. Other income contributed only 0.07% of pre-tax profit, so reported profit was not materially supported by that line. The tax rate was 0.00%, unchanged from Q1FY27, meaning the quarter's net profit matched pre-tax profit without a sequential tax-rate benefit.
Margin remains below the sector median
Among 68 Financial Services peers that had reported the same quarter, Fusion Finance's 49.15% operating margin was 4.33 percentage points below the sector median of 53.48%. The quarter-on-quarter margin expansion therefore improved the company's own performance without moving it above the peer midpoint.
Results were filed after market close
Fusion Finance filed its standalone Q2FY27 results after market close on 02 Nov 2026. The immediate market response is therefore not covered here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹486 cr | ₹458 cr | +5.99% |
| Other income | ₹0 cr | ₹0 cr | -57.14% |
| Expenses | ₹247 cr | ₹244 cr | +1.06% |
| Operating profit | ₹239 cr | ₹214 cr | +11.62% |
| Operating margin (%) | 49.15% | 46.67% | — |
| Interest | ₹151 cr | ₹150 cr | +0.45% |
| Depreciation | ₹2 cr | ₹2 cr | +1.15% |
| Profit before tax | ₹86 cr | ₹62 cr | +38.57% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹86 cr | ₹62 cr | +38.57% |
| EPS (₹) | ₹5.35 | ₹3.86 | +38.60% |
Operating margin of 49.15% compares with a Financial Services sector median of 53.48% across 68 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 49.15% after the 2.48 percentage-point quarter-on-quarter expansion.
- Whether interest growth remains near +0.45% quarter on quarter as profit growth is assessed.
- Whether the tax rate remains at 0.00% and other income stays immaterial relative to the 0.07% share of pre-tax profit.