Archive · 7 Nov 2025
JM Financial Downgrades Fusion Finance Stock After Q2 Loss
Imagine Fusion Finance is a company that lends money, and JM Financial is like a financial advisor who watches how well companies are doing.
In the last three months, Fusion Finance lost money when it was expected to make money.
This happened because the money it earned from loans went down, its costs to run the business went up, and it had to set aside more money for loans that might not be paid back.
Because of this, the financial advisor, JM Financial, told people to sell their shares in Fusion Finance, meaning they think the stock price might go down.
They also set a lower price target for the stock.
The company's overall amount of loans it manages also got smaller, but it hopes this will stop soon.
JM Financial downgraded Fusion Finance stock from 'Hold' to 'Reduce' following a weak Q2 FY26 performance.
Fusion Finance reported a net loss of Rs 22.1 crore for Q2 FY26, contrary to JM Financial's profit estimate of Rs 14.8 crore.
Key financial metrics cited include a 38% YoY fall in net interest income and higher-than-expected operating expenses.
Elevated provisions were noted, although they declined significantly year-on-year and sequentially.
The company's assets under management contracted, with management anticipating a stabilization after Q3.
- Who
- JM Financial and Fusion Finance Ltd
- What
- JM Financial downgraded Fusion Finance's stock rating to 'Reduce' due to a Q2 net loss significantly below estimates, citing core income pressure, higher operating expenses, and elevated provisions.
- When
- July-September quarter (Q2 FY26)
- Where
- India
- Why
- Fusion Finance reported a net loss instead of an expected profit, with decreased net interest income, increased operating expenses, and provisions exceeding estimates, leading to a downgrade by JM Financial.
- Company
- Fusion Finance Ltd (formerly Fusion Micro Finance Ltd)
- Analyst Firm
- JM Financial
- Rating Change
- Hold to Reduce
- Q2 FY26 Net Loss
- Rs 22.1 crore
- JM Financial Q2 Estimate
- Rs 14.8 crore profit
- 12-Month Target Price
- Rs 165
- Stock Price (as of last check)
- Rs 173.35 (up 0.35%)