OfBusiness FY26: Profit Up 21% as Revenue Falls 7%
OfBusiness grew profit while letting revenue shrink. For a commerce platform heading to the public markets, that trade is the whole strategy.
- Profit rose 21% to Rs 724 crore even as revenue fell 7%
- EBITDA margin nearly doubled to 4% from 2.6%
- Free cash flow to the firm turned positive for the first time
- Oxyzo lending arm holds a 0.75% gross NPA ratio
IPO-bound OfBusiness closed FY26 with consolidated profit after tax of Rs 724 crore, up 21% from Rs 597 crore a year earlier. Revenue moved the other way, falling about 7% to Rs 20,645 crore from Rs 22,241 crore in FY25.
That combination is the story. EBITDA rose 39% to Rs 769 crore and the EBITDA margin widened to 4% from 2.6%, meaning the B2B raw materials platform earned meaningfully more on a smaller book of business. Operating cash flow climbed to Rs 1,302 crore from Rs 715 crore, and free cash flow to the firm turned positive for the first time at Rs 390 crore.
Oxyzo, the group lending arm, grew its asset base 28% to Rs 11,800 crore while holding gross non-performing assets at 0.75% and return on assets at 3.8%. For a lender attached to a commerce platform, credit quality at that level is the number that matters most to public-market investors.
Why it matters
Indian commerce platforms have spent a decade being valued on revenue growth. OfBusiness went into its pre-IPO year and deliberately shed low-margin volume instead, trading topline for margin, cash generation and a cleaner set of unit economics.
Operators reading this ahead of their own fundraise should note what got rewarded: gross margin discipline, positive operating cash flow, and a financing book with visible asset quality. Revenue that does not convert to cash is increasingly treated as a cost rather than a signal, and the diligence questions have moved accordingly.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.