Quick Take
- OfBusiness FY26 profit rose 21% to Rs 724 Cr, up from Rs 597 Cr in FY25.
- Consolidated revenue slipped 7% to Rs 20,645 Cr as low-return lines were dropped.
- Commerce margin doubled from 2.6% to 4.0%, setting the base for a planned IPO.
In This Article
OfBusiness FY26 profit climbed 21% to Rs 724 Cr for the year ended March 2026, even as consolidated revenue fell 7% to Rs 20,645 Cr, the SoftBank-backed firm said in a statement on July 29, 2026.
The Bengaluru company, formally OFB Tech Ltd, runs a business-to-business (B2B) commerce and lending platform for small and medium enterprises (SMEs). It let go of some low-return product lines during the year, which trimmed the top line but lifted margins across its core commerce unit. The result lands as the decade-old firm prepares for a much-watched initial public offering (IPO).
StartupFeed Insight
The real story here is not the headline profit, it is the quality of it. A commerce margin moving from 2.6% to 4.0% in a thin-margin trading business is hard, and OfBusiness did it by making more of what it sells (deeper manufacturing) rather than chasing volume. Watch the IPO desk and rival SME lenders closely: a firm that is free cash flow positive in commerce and past Rs 10,000 Cr in lending assets is a very different listing candidate than a growth-at-any-cost story. Expect OfBusiness to file updated IPO papers with SEBI by mid-2027, once FY27 returns show. By Harshvardhan Jain.
OfBusiness FY26 Profit: The Full Numbers
OfBusiness FY26 profit after tax stood at Rs 724 Cr, a 21% rise over the Rs 597 Cr reported in FY25, Business Standard reported from the company statement. Consolidated revenue was Rs 20,645 Cr, down from Rs 22,241 Cr a year earlier. Every figure below comes from the company release.
| Metric | FY26 Detail | Notes |
|---|---|---|
| Consolidated Revenue | Rs 20,645 Cr | Down 7% from Rs 22,241 Cr in FY25 |
| Profit After Tax | Rs 724 Cr | Up 21% from Rs 597 Cr in FY25 |
| Commerce Revenue | Rs 19,174 Cr | Flat YoY after adjusting for discontinued lines |
| Commerce EBITDA | Rs 769 Cr | Up 34% from Rs 575 Cr in FY25 |
| Commerce EBITDA Margin | 4.0% | Expanded from 2.6% a year earlier |
| Announcement Date | July 29, 2026 | For the year ended March 31, 2026 |
The standout is EBITDA (earnings before interest, taxes, depreciation and amortisation) rising 34% while revenue fell. That gap shows the profit came from mix and pricing, not from selling more.
About OfBusiness
OfBusiness is a B2B commerce and financing platform for SMEs, founded in 2015 and headquartered in Bengaluru. It sells industrial goods across metals, chemicals, apparel and food processing, and lends working capital through its arm Oxyzo Financial Services. Cofounders include Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta and Vasant Sridhar. SoftBank is a lead backer, and the group crossed 30,000 employees in FY26.
Is OfBusiness Profitable Now?
OfBusiness is profitable and turned free cash flow positive in its commerce business during FY26. The commerce unit generated Rs 390 Cr in free cash flow to firm and Rs 1,302 Cr in operating cash flow, up from Rs 715 Cr a year earlier.
“The year saw the Group crossing significant milestones, becoming free cash flow to firm positive in the commerce business and crossing the Rs 10,000 crore assets under management mark in lending,” said Asish Mohapatra, cofounder and CEO, OfBusiness.
Consolidated net worth stood at Rs 10,300 Cr with over Rs 2,000 Cr in liquidity. For a lending-plus-trading group, positive commerce cash flow matters more than a single profit figure, because it shows the core can fund itself.
Why Did Revenue Fall While Profit Rose?
Revenue fell because OfBusiness deliberately shut low-return sub-categories, so the drop reflects choice, not weak demand. Adjusted for those discontinued lines, commerce revenue of Rs 19,174 Cr was flat year-on-year, and deeper manufacturing integration lifted margins on what remained.
The lending arm added ballast. Oxyzo closed FY26 with an asset base of Rs 11,822 Cr, up 28% year-on-year, a return on assets of 3.8%, and gross non-performing assets (bad loans) of just 0.75%. StartupFeed notes that a clean loan book at that scale gives the group a second, steadier profit engine alongside commerce.
How Does OfBusiness Compare to Rivals?
OfBusiness competes with other B2B commerce and SME-financing players in India, and its scale sets it apart. The comparison below places its FY26 figures against the broad positioning of listed and private rivals.
| Player | Focus | Edge |
|---|---|---|
| OfBusiness | B2B commerce plus SME lending | Rs 20,645 Cr revenue, profitable, own NBFC |
| Udaan | B2B trade marketplace | Wide retailer reach, FMCG depth |
| Moglix | Industrial B2B procurement | Enterprise supply-chain focus |
What sets OfBusiness apart is the pairing of physical commerce with an in-house lender, letting one buyer source goods and working capital on a single platform.
What’s Next
OfBusiness has signalled that FY27 will be pivotal, with returns from earlier investments due to play out. The group has converted to a public company, a step that usually precedes a formal IPO filing, though it has deferred the exact timeline. Will steadier margins and a clean loan book be enough to win the valuation OfBusiness wants when it finally lists?
Frequently Asked Questions
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
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