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OfBusiness Profit Soars 21% to ₹724 Cr Ahead of IPO

By Business DeskOfBusiness Profit Soars 21% to ₹724 Cr Ahead of IPO

IPO-bound OfBusiness reports a 21% YoY profit jump to ₹724 Cr in FY26, driven by strong revenue growth and improved cash flow. Key financials revealed.

B2B commerce and financing platform OfBusiness, gearing up for an IPO, posted a substantial 21% year-on-year rise in profit after tax (PAT), reaching Rs 724 crore in FY26. This significant jump from Rs 597 crore in the previous fiscal underscores a period of robust growth for the company.

Key Financial Highlights

  • PAT: Rs 724 crore in FY26, up 21% from Rs 597 crore in FY25.
  • Consolidated Revenue: Rs 20,645 crore in FY26.
  • Commerce Division Revenue: Rs 19,174 crore.
  • EBITDA: Rs 769 crore in FY26, a 39% increase from Rs 575 crore in FY25.
  • EBITDA Margin: Expanded to 4% in FY26 from 2.6%.
  • Operating Cash Flow (commerce): Rs 1,302 crore in FY26, up from Rs 715 crore.
  • Free Cash Flow to Firm (FCFF): Rs 390 crore in FY26, marking its first positive year.
  • Oxyzo Financial Services Asset Base: Grew 28% to Rs 11,800 crore in FY26.
  • Oxyzo Return on Assets: Maintained at 3.8%.
  • Oxyzo Gross Non-Performing Asset (GNPA) Ratio: Stood at 0.75%.

The company’s commerce division, encompassing metals, chemicals, apparel, and food processing, was the primary revenue driver. Its contribution of Rs 19,174 crore, coupled with a 39% EBITDA growth, propelled the EBITDA margin to 4% from 2.6%. This indicates improved operational efficiency across its diverse B2B segments.

Strategic Growth Drivers

OfBusiness also demonstrated enhanced financial health through improved cash generation. Operating cash flow from its commerce business nearly doubled to Rs 1,302 crore in FY26. Crucially, the company achieved positive free cash flow to firm for the first time, recording Rs 390 crore during the year.

Its financing arm, Oxyzo Financial Services, played a significant role in this growth trajectory. Oxyzo expanded its asset base by 28%, reaching Rs 11,800 crore in FY26. The arm maintained a strong return on assets at 3.8% and a low gross non-performing asset ratio of 0.75%.

Beyond financial metrics, OfBusiness leverages technology to support SMEs. Its BidAssist platform, founded in 2015 by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, and Vasant Sridhar, serves over 1.5 million business users. This platform aggregates more than 50,000 live tenders daily and utilizes AI to match tenders, supporting both commerce and financing operations.

Leadership Outlook

The company’s workforce has expanded significantly, nearly doubling over the past year to exceed 30,000 employees. This expansion is largely attributed to the growth of its apparel business in South India, reflecting strategic investments in key operational areas.

Co-founder and CEO Asish Mohapatra highlighted FY26 as a year of “significant milestones,” including positive free cash flow in the commerce business and surpassing Rs 10,000 crore in Assets Under Management for lending. He anticipates that FY27 will be “a crucial year for realizing returns from previous investments,” setting a clear expectation for future performance.

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