OfBusiness reported a 21% rise in consolidated net profit to ₹724 crore in FY26 even as revenue declined 7% to ₹20,645 crore, underscoring a shift towards higher-margin segments and stronger cash generation. The Gurugram-based B2B commerce and financing platform is preparing to file its draft IPO papers within two to three months, amid improved profitability and a healthier balance sheet.
Margin-led strategy lifts earnings and cash flows
The company prioritised margin accretive categories and in-house manufacturing through FY26, pruning low-return lines. Its core commerce operations—spanning metals, chemicals, apparel and food processing—posted revenue of ₹19,174 crore. Segment EBITDA rose to ₹769 crore, with margins improving to about 4% from 2.6% in FY25, supported by tighter sourcing, scale efficiencies and product mix optimisation.
Nearly 45% of the portfolio is now manufactured within group entities, aiding cost control and cycle times. Operating cash flow from commerce surged to ₹1,302 crore from ₹715 crore a year earlier. The business turned free cash flow to firm positive for the first time, generating ₹390 crore. Consolidated net worth stood at approximately ₹10,300 crore at end-FY26, including around ₹3,000 crore in retained earnings, with liquidity exceeding ₹2,000 crore.
BidAssist, OfBusiness’s AI-led tender discovery platform, expanded its user base to over 1.5 million and now hosts more than 50,000 live tenders daily, broadening access to government and private procurement opportunities. Headcount crossed 30,000, driven largely by growth in apparel manufacturing capacities across South India.
Oxyzo scales lending with strong asset quality; IDEPL deepens manufacturing
Oxyzo Financial Services, the group’s credit arm, delivered a 23% rise in operating revenue to ₹1,494 crore in FY26, with PAT at ₹375 crore. Assets under management expanded 28% to ₹11,822 crore. Asset quality remained robust, with GNPA at about 0.74% and NNPA at 0.30%, while CRAR stood at 29%, comfortably above regulatory thresholds.
Oxyzo acquired GoldenPi Technologies and GoldenPi Securities via a share-swap valued at ₹42.4 crore, gaining a foothold in the retail and HNI bond investment market. GoldenPi has over 1.6 million users and has facilitated more than ₹6,000 crore in bond investments. The lender also launched Oxyzo Credit Fund I, targeting ₹3,000 crore in AUM over five years.
Manufacturing capabilities were bolstered through the acquisition of Indian Designs Exports Private Limited (IDEPL), a supplier to global brands including H&M, IKEA and Columbia Sportswear. To mitigate US tariff exposure, IDEPL shifted American orders to its Bangladesh subsidiary, while fulfilling European and UK demand from Indian facilities.
IPO preparations gather pace amid sectoral shift to profitability
Following its conversion to a public limited company in January 2025, OfBusiness is advancing IPO plans, with a filing of the Draft Red Herring Prospectus expected within the next quarter. The proposed issue could raise $750 million to $1 billion, implying a potential valuation range of $6–9 billion, and is likely to comprise a mix of fresh issuance and an offer for sale by existing shareholders.
The company’s improved earnings profile, stronger free cash flow, and expanding manufacturing base are expected to underpin investor appetite. In a parallel development, manufacturing platform Zetwerk has filed its DRHP with SEBI, also steering towards profitable growth by exiting low-margin lines and scaling investments in manufacturing, renewables, defence, aerospace and consumer electronics. Together, these moves highlight a broader shift in India’s B2B manufacturing ecosystem towards sustainable margins, capital efficiency and disciplined expansion.
