OfBusiness Faces Profitability Balancing Act Ahead of IPO
As OfBusiness approaches a stock market debut, the company reports a decline in overall revenue alongside increased profits driven primarily by its lending division, Oxyzo.
OfBusiness is preparing for an initial public offering under a dual-engine model where trading operations provide the bulk of revenue, while the lending arm, Oxyzo, generates the majority of profits. This structural imbalance has become a central focus for analysts evaluating the company's long-term growth potential.
For the 2026 fiscal year, consolidated operating revenue fell nearly 8% year-on-year, even as net profit climbed 21% to ₹724 Cr. While commerce activities accounted for 93% of the company's revenue, the lending-led business reported a pre-tax profit of ₹505 Cr, outperforming the ₹422 Cr profit generated by commerce. This performance disparity underscores the company's reliance on high-margin credit services to offset the volatile, low-margin nature of its commodity trading.
To improve the commerce unit's economic viability, management is shifting from pure trading toward selective in-house manufacturing. By expanding capacity in structural steel and chemicals, OfBusiness aims to exert greater control over supply chains and margins. This strategic pivot involves scaling back low-return categories to prioritize operational efficiency, as highlighted in recent shareholder communications.
As the company moves toward public trading, the market will assess whether these manufacturing investments can sustain earnings growth independently of commodity price recovery. OfBusiness remains a notable outlier in India's B2B sector, as it has maintained profitability unlike many of its peers.