CreditAccess, Fusion Finance: Motilal Oswal bet on recovery-led growth in microfinance

The microfinance industry is gradually recovering from a turbulent phase, driven by operational reforms, digital adoption, and product diversification. Despite a significant GLP contraction and cautious lending, improved collection efficiencies and an easing funding environment signal a stronger future. Profitability is expected to rebound from 2HFY26, fostering sustainable growth.