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Biofloc technology is a modern-day high-density fish culture system employing heterotrophic conversion of nitrogenous waste into useful flocs for water quality control and improved welfare. However, optimization of the stocking density for the target species during seed rearing is the key to a successful farming operation. The study evaluated the effect of different stocking density on the growth, feed utilization, digestive physiology and economics in a biofloc-based seed rearing of butter catfish, O. bimaculatus. Advanced fry (1.21 ± 0.08 g) was reared in a zero-water exchange biofloc system for 90 days at stocking densities of 0.5 g/L(T1), 1.0 g/L(T2), 1.5 g/L(T3) and 2.0 g/L(T4). The observed water quality indicates a reduction in DO and pH in T4, while the total ammonia nitrogen and nitrite levels remained low in T1. Among the groups, highest weight gain was noticed in the lowest stocking density (0.5 g/L) (p < 0.05), which coincides with a better feed conversion ratio. Similarly, the digestive enzyme (protease, amylase, and lipase) secretion was higher in T1. Profitability assessment describes the possibility of low profit in T4, in the case where the fish's sale price is based on harvested size. T1 showed higher individual growth and higher profit. Overall, a low stocking density of 0.5 g/Lis optimum for augmenting growth, feed utilization, physiological function and economic performance of O. bimaculatus. The study provides direction for a low-stocking oriented ecological and economically sustainable method of seed production of butter catfish in a biofloc system. [ABSTRACT FROM AUTHOR]