Can Fusion CX IPO deliver long-term growth for high-risk investors?

AgenciesET Bureau

Business

Incorporated in 2004, Fusion CX provides multichannel customer support through voice, email, chat, social media and messaging to companies. Its workforce expanded to 13,735 as of June 2026 from 8,539 at the end of March 2024. It had 40 delivery centres and two sales offices across13 countries as of June 2026. The US is its major market contributing over 77% to revenue, followed by India at around 10%, and Australia and Europe each at around 7-8%. The top 10 clients contributed around 50% of the revenue in FY26. In the current year, the company acquired VA Platinum offshoring to expand presence in Australia.

Financials

Revenue rose nearly two times to ₹1,818 crore while net profit grew nearly five times to ₹169.8 crore between FY24 and FY26. The operating margin before depreciation and amortisation (Ebitda margin) expanded to 18.1% from 10.6%. It was at the lower end of the margin band of 16-34% for the peer group. The return on equity rose to 30.3% from 13.4% during the period. This compares with 15-32% range for peers.

Valuations

The company demands a FY26 trailing price-earnings (P/E) multiple of 25 considering post-IPO equity. Based on annualised June 2026 quarter earnings of ₹55.7 crore, the P/E works out to be 19. Peers including Firstsource Soutions, Sagility, and Eclerx Services trade at forward P/Es of 31, 24, and 21.