JM Financial has downgraded Fusion Finance Ltd (formerly known as ) to 'Reduce' from 'Hold' following a weak set of numbers for the July–September quarter (Q2 FY26). The domestic brokerage highlighted that the company's earnings were significantly below estimates due to pressure on core income, higher operating expenses and elevated provisions. Advertisement

Fusion Finance reported a net loss of Rs 22.1 crore in Q2 FY26, against JM Financial's estimate of a Rs 14.8 crore profit. The company's net interest income (NII) fell 38 per cent year-on-year (YoY) and 10 per cent quarter-on-quarter (QoQ), while operating expenses were higher than expected.

Provisions also exceeded estimates by 15 per cent, although they declined 84 per cent YoY and 38 per cent sequentially as the company utilised

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