Fusion Micro Finance's Q1FY25 earnings were affected by elevated credit cost, leading to a loss of INR 356mn, despite 6% QoQ AUM growth and 8% QoQ NII growth; operating costs and credit costs rose, prompting a 46% reduction in earnings estimates and a downgrade to REDUCE with a revised target price of INR 385. Fusion Micro Finance's Q1FY25 earnings were affected by elevated credit cost.