Fusion CX

Fusion CX was originally incorporated as Xplore-Tech Services Private Limited on February 25, 2004, under the Companies Act, 1956, by the Registrar of Companies in West Bengal, Kolkata. Over the decades, the company evolved from a regional service provider into a global CX powerhouse, culminating in a name change to Fusion CX Private Limited in March 2024 and subsequent conversion to a public limited company as Fusion CX Limited in March 2025. This structural evolution reflected its expanding geographical footprint and strategic repositioning as an advanced technology-enabled customer engagement enterprise.

The core business model centers on delivering high-end, complex, and integrated customer experience services across multiple channels, including voice, email, chat, social media, and messaging. In addition to traditional customer acquisition, retention, technical support, and order fulfillment support, Fusion CX has expanded into specialized AI Data Infrastructure Services. This encompasses data collection, data annotation and labelling, and teleoperations services, powered by proprietary AI tools such as Arya and MindVoice developed by its step-down subsidiaries, Omind Technologies Inc. and Omind Technologies Private Limited.

The company caters to a highly diversified portfolio of tier-1 institutional customers spanning telecommunications and utilities, healthcare and life sciences, high-tech and technology, banking and financial services (BFSI), and retail sectors. Fusion CX has established deep long-standing relationships with global enterprises, ensuring high revenue stickiness and recurring service contracts. Its stringent service level agreements (SLAs), compliance standards, and multi-language capabilities across 28 languages make it a preferred vendor for multinational corporations seeking seamless outsourcing solutions.

Operationally, Fusion CX has scaled significantly to support its global clientele. As of 2024, the enterprise operates 40 scalable delivery centers spread across 15 countries, supported by a robust workforce comprising 10,520 CX professionals and a 12,323-strong field workforce. The service delivery model is heavily anchored in technology, blending human expertise with artificial intelligence and automation to drive efficiency, reduce handle times, and improve customer satisfaction metrics at scale.

The company is driven by an experienced promoter group and a professional leadership team with extensive domain expertise in business process management and technology integration. Strategic initiatives focus on continuous R&D investments in proprietary AI solutions, inorganic growth through targeted acquisitions, and expanding delivery capabilities in high-growth international markets to solidify its competitive positioning within the global CX industry.

The Fusion CX Initial Public Offering represents a book-built issue aggregating up to ₹702.00 crores, structured as a combination of a fresh issue of ₹500.00 crores and an offer for sale (OFS) of approximately ₹202.00 crores by promoter selling shareholders. The price band has been fixed at ₹289 per equity share with a face value of ₹1 each. The issue opened on October 14, 2026, and closed on October 16, 2026, with the basis of allotment finalized on October 19, 2026, and listing scheduled on BSE and NSE on October 22, 2026. The total issue float size stands at ₹601.0 crores, reflecting strong institutional participation.

The net proceeds raised from the fresh issue will be deployed towards strategic objectives including the full or partial repayment and prepayment of certain outstanding borrowings availed by the company and its direct and step-down subsidiaries. Additionally, funds will be invested in step-down subsidiaries Omind Technologies Inc. and Omind Technologies Private Limited for upgrading core proprietary IT tools like Arya and MindVoice, alongside funding inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes.

Financial performance over the past three fiscal years demonstrates exceptional growth momentum. Restated consolidated revenues expanded from ₹520.5 crores in FY24 to ₹740.2 crores in FY25, and further accelerated to ₹1,050.8 crores in FY26, delivering a robust Revenue CAGR. EBITDA margins expanded concurrently due to operating leverage and higher-margin AI-driven service adoption. Net profits (PAT) tracked an aggressive upward trajectory, moving from ₹28.5 crores in FY24 to ₹58.2 crores in FY25, and surging to ₹134.5 crores in FY26, driven by scaling operations and improved realization per seat.

From a valuation perspective, the company reported a Basic EPS of ₹2.88 in FY24, ₹5.90 in FY25, and ₹13.47 in FY26, with a weighted average basic EPS of ₹9.18. Diluted EPS stood at ₹13.41 for FY26. Return on Equity (ROE) and Return on Capital Employed (ROCE) have witnessed consistent expansion, crossing industry medians due to efficient capital utilization and increasing net worth. The issue is priced at a compelling valuation multiple relative to listed BPO and IT-enabled services peers, offering an attractive entry point for institutional investors.

Key investment highlights include strong promoter alignment, high proportion of fresh capital infusion (83.2% of the total issue size) going directly into balance sheet strengthening and technology enhancement, and structural tailwinds in the global customer experience and generative AI automation sector. The healthy subscription demand across categories—recording a weighted institutional demand score of 4.38x with overall subscription reaching 4.42x—underscores robust market confidence.

Principal risk factors include customer concentration from top-tier accounts, potential wage inflation across global delivery centers, foreign currency exchange rate fluctuations, and execution risks associated with integrating inorganic acquisitions. Additionally, grey market premium trends indicate a modest listing gain expectation of approximately 1.63%, advising investors to maintain a long-term horizon anchored on fundamental execution rather than short-term listing pops.