OfBusiness has reported that its apparel segment revenue grew to ₹3,002 crore in fiscal year 2026, marking a significant increase from ₹843 crore in FY24. As the apparel vertical becomes a key growth driver, the company is moving forward with plans for an IPO of up to $800 million, targeting a potential draft filing later this year.
B2B commerce platform OfBusiness has achieved a major milestone, with its apparel division revenue tripling to ₹3,002 crore in the fiscal year ending March 2026. This rapid growth follows a period of intense operational expansion, bringing the segment’s contribution to 15.7% of the company’s total ₹19,174 crore commerce business. The company, which counts global retailers like Uniqlo, Adidas, and Michael Kors among its clients, has effectively used its manufacturing footprint across South India, the Delhi NCR region, and Bangladesh to scale production.
While the apparel segment is growing rapidly, the company's overall financial picture reflects a strategic pivot. OfBusiness reported a consolidated revenue of ₹20,645 crore for FY26, which represents a 7% decline compared to the previous year. Management has attributed this revenue drop to a deliberate strategy of exiting low-margin business lines. Despite the lower top-line revenue, the company’s focus on higher-value products has paid off, with net profit rising by 21% to reach ₹724 crore.
This performance comes as OfBusiness accelerates its preparations for an initial public offering. The company is reportedly planning an IPO of up to $800 million, which will include a mix of a fresh issue of shares and an offer for sale. To manage the process, the company has appointed a strong lineup of advisors, including Axis Capital, Morgan Stanley, JPMorgan Chase & Co., and Citigroup. Market participants expect the company to file its Draft Red Herring Prospectus by November 2026.
Despite the growth, the business faces specific challenges that investors may track. The company’s financial health remains sensitive to volatility in global commodity prices, such as metals and chemicals, which are core to its other business segments. Furthermore, as an exporter to over 70 countries, the company is exposed to foreign exchange rate fluctuations that can impact profitability. Operational complexity is another factor to watch, as the business continues to integrate large manufacturing facilities across different geographies. Additionally, the B2B commerce and SME lending sectors are highly competitive, featuring both large established players and smaller, agile firms that put pressure on margins. These market risks have previously led the company to defer its IPO plans, making the execution of the current growth strategy a key point for future updates.