OfBusiness IPO: Oxyzo Lending Drives Profit as Commerce Shrinks

OfBusiness is heading to the stock market with an unusual profile: commerce generates almost all of its revenue, while lending generates most of its profit. In FY26, commerce, which spans raw-material trading, manufacturing and apparel, accounted for 93% of the ₹20,472 Cr consolidated operating revenue. Yet financial services, led by Oxyzo, delivered ₹505 Cr in segment profit before tax, against ₹422 Cr from commerce.

A profitable group with shrinking sales

Consolidated operating revenue fell nearly 8% year on year in FY26, even as net profit rose 21% to ₹724 Cr. OfBusiness and Oxyzo have each reached unicorn status independently, a rarity among Indian B2B commerce players such as Udaan, Moglix and Zetwerk, which have struggled with losses.

The sales decline reflects commodity exposure. Metals, the largest category, dropped 20% to ₹10,434 Cr, chemicals grew 4% to ₹3,663 Cr, and food processing and other products fell 55% to ₹1,636 Cr. The company says it exited lower-return categories, but its shareholder letter also cites lower mild-steel prices and delays in two mega projects. The disclosures do not separate the two effects.

Manufacturing as the margin lever

To lift thin trading margins, OfBusiness is manufacturing selected products. The FY26 annual report lists six of 26 metal products made in-house, with more than 1.1 Mn tonnes of annual capacity, and eight of 26 chemical products, with capacity above 80,000 tonnes. The results are visible: commerce revenue fell 9.7% to ₹19,056 Cr, but its segment result excluding other income rose from ₹303 Cr to ₹527 Cr.

Apparel is the fastest-growing line, with fashion sales jumping from ₹376 Cr in FY25 to ₹2,828 Cr in FY26. Meanwhile, platforms such as BidAssist, which reached 1.7 Mn subscribers in October 2026, and the AI-led Nexizo give the group a way to reach SMEs before they need procurement or credit.

For IPO investors, the key question is whether commerce earnings can keep improving through capacity investment rather than commodity-price recovery or portfolio exits, or whether lending will continue to carry the profits.