Fusion Finance eyes 20-25% AUM growth as loan demand rebounds

Fusion Finance has set its sights on accelerating growth in the latter half of the fiscal year, projecting 20-25% expansion in assets under management as demand for loans strengthens across its portfolio. The non-banking finance company is banking on increased lending activity during the festive season to drive momentum through H2FY27.

However, the company acknowledged that weather-related disruptions have necessitated a revision to its earlier projections. Fusion Finance had initially targeted AUM of Rs 10,000 crore for the full fiscal year, but now expects moderated growth owing to seasonal challenges that impacted operations during H1FY27.

The revised outlook reflects cautious optimism in the lending sector as economic activity picks up post-monsoon. Festive-season consumption typically drives increased credit offtake across consumer finance and microfinance segments, where non-bank lenders like Fusion Finance operate. The company's growth trajectory will hinge on sustained demand recovery and normalisation of weather conditions in the coming months.

Fusion Finance's revised guidance underscores the sector's vulnerability to external factors while highlighting the importance of seasonal demand cycles for growth-stage finance companies operating in India's semi-urban and rural markets.