The paper has two parts, in the first part, we apply the localisation technique to the Rozansky-Witten theory on compact HyperKahler targets. We do so via first reformulating the theory as some supersymmetric sigma-model. We obtain the exact formula for the partition function with Wilson loops on $S^1timesSigma_g$ and the lens spaces, the results match with earlier computations using Feynman diagrams on K3. The second part is motivated by a very curious preprint cite{Gukov:2020lqm}, where the equivariant index formula for the dimension of the Hilbert space the theory is interpreted as a kind of Verlinde formula. In this interpretation, the fixed points of the target HyperKahler geometry correspond to certain states. In the second half of the paper we extend the formalism of part one to incorporate equivariance on the target geometry. For certain non-compact hyperKahler geometry, we can apply the tilting theory to the derived category of coherent sheaves, whose objects label the Wilson loops, allowing us to pick a basis for the latter. We can then compute the fusion products in this basis and we show that the objects that have diagonal fusion rules are intimately related to the fixed points of the geometry. Using these objects as basis to compute the dimension of the Hilbert space leads back to the Verlinde formula, thus answering the question that motivated the paper.
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