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.