Fusion CX is a real business with real cash flow. That is not the same as a good IPO for the person buying from its promoters.
The issue
Fusion CX opens on Wednesday, 14 October 2026 and closes on Friday, 16 October, at a price band of ₹275 to ₹289. The lot is 51 shares, ₹14,739 at the top of the band. Listing is expected on 22 October on NSE and BSE.
The issue is ₹702 crore: ₹500 crore fresh and ₹202 crore offer for sale. Post-issue market cap at ₹289 is ₹4,172 crore. Only 10% of the issue is reserved for retail; 75% goes to institutions and 15% to non-institutional investors. Nuvama, IIFL Capital and Motilal Oswal are the lead managers.
What the company does
Fusion CX runs call centres and digital customer-support desks for other companies: calls, chat, email, collections and order handling. It has 40 delivery centres in 13 countries and served 208 customers as of June 2026. About 85% of revenue comes from the US and Canada. Telecom and utilities clients are 47% of revenue, banking and finance 14%, healthcare 13%. A small subsidiary, Omind Technologies, builds AI tools for its contact centres.
There is no order book. Revenue comes from contracts that usually run for less than 24 months, 89% of them fixed-fee, and many can be ended at short notice.
The numbers
| ₹ crore | FY24 | FY25 | FY26 | Q1 FY27 |
|---|---|---|---|---|
| Revenue from operations | 991 | 1,329 | 1,818 | 504 (total income) |
| PAT | 36 | 74 | 170 | 56 |
| PAT margin | 3.7% | 5.6% | 9.3% | 11.4% |
| Operating cash flow | 39 | 102 | 264 | 23 |
| Borrowings | 211 | 307 | 267 | 238 |
The growth and the cash are real. FY26 operating cash flow of ₹264 crore was higher than profit. But profitability is only two years old: in FY24 the margin was 3.7% and most of pre-tax profit came from other income. Much of the growth was bought through eight acquisitions since 2024, and one client accounted for about 64% of FY26's revenue growth. Without that client, revenue grew about 16% in FY26.
Where the money goes
- ₹276 crore repays debt, clearing about 92% of borrowings and saving roughly ₹25 crore a year in interest. This part helps the company.
- ₹61 crore goes into Omind, its AI tools arm.
- The rest of the fresh issue goes to general corporate purposes and acquisitions not yet identified.
- The ₹202 crore OFS goes to two promoter companies, P N S Business and Rasish Consultants. They also sold ₹120 crore of shares at ₹289 on 9 October, just before the IPO, to investors including Ashish Kacholia and Kotak Life.
In all, the promoters take about ₹322 crore out. Their cost is ₹0.12 to ₹0.13 per share.
Peers
| Market cap | P/E | |
|---|---|---|
| Fusion CX (post-issue) | ₹4,172 Cr | ~25x FY26 |
| Firstsource | ~₹23,400 Cr | 23.8x |
| eClerx | ~₹17,500 Cr | 24.1x |
| Alldigi | ~₹1,235 Cr | 13.1x |
The price is roughly in line with listed peers. It is not cheap.
Flags
- Sunset industry. The company's own offer document lists generative AI reducing the need for outsourced customer support as a risk. ₹61 crore into its own AI tools does not change the direction of the industry.
- One client is 30% of revenue, up from 14% in FY24.
- ₹84 crore lent to PKR Services, a promoter-group company where the chairman is a director. The balance was ₹1.7 crore in March 2024. Its accounts are unaudited and no repayment terms are stated.
- A 10.3% tax rate, helped by subsidiaries in Belize and the Philippines. At India's 25% rate, FY26 profit would be about ₹142 crore and the P/E about 29x.
- Goodwill and intangibles are about 75% of net worth, the price of its acquisitions. These can be written down.
- Lawsuits of about ₹181 crore, including a claim by the sellers of an acquired US business.
- Staff attrition of 31% and no currency hedging on a mostly dollar revenue base.
Demand
The anchor book raised ₹316 crore from 19 investors, mostly mutual funds. The grey market premium was about ₹33 on 14 October, around 11% over the top of the band, down from ₹55 on 9 October. Neither is a verdict on the business. Building demand for an issue is the lead managers' job.
Verdict
A great exit for the promoters. For everyone else, not much. The profit is real but recent, the growth was largely bought and leans on one client, the tax rate flatters the earnings, and the industry is the one AI is coming for. At about 25 times earnings, there are better fish in the pond. Tread very carefully.
Educational purposes only, not investment advice. DYOR.
Sources: Fusion CX Limited RHP, October 2026; Chittorgarh and Investorgain IPO pages, 14 October 2026; Business Today, 14 October 2026; IPO Watch review by Dilip Davda; mPulse RHP analysis.
Follow along: @tyrovirtuoso on X