Hospitality unicorn OYO ended FY25 with a net profit of ₹244.8 Cr, a modest 7% jump over FY24’s first-ever profit, but the headline number masks deep complexity. OYO’s FY25 profit was buoyed by a deferred tax gain of ₹765.6 Cr, up sharply from ₹51.3 Cr in FY24. Excluding this, OYO posted a pre-tax loss of ₹489.3 Cr, compared to a profit before tax of ₹235.8 Cr last year.
Founder Ritesh Agarwal highlighted in a staff memo that unaudited profits surged 172% YoY to ₹623 Cr, and EBITDA rose 27% to ₹1,132 Cr in FY25. Official annual reports put EBITDA at ₹1,083.5 Cr, up 22% year-on-year. OYO’s operating revenue increased 16% to ₹6,252.8 Cr—with growth led by accommodation (₹3,824.8 Cr, up 11%), commissions and royalties (₹1,562 Cr, up 16%), and a multi-fold jump in the food and beverage business, albeit on a low base. The company also expanded revenues from cleaning, fees, and rentals
Persistent IPO Delays and Financial Pressures
OYO’s public listing saga has been turbulent. After failed DRHP filings in 2021 and 2023, the company now targets a potential 2026 IPO at a $7–8 billion valuation. Delays stem from market volatility and pivotal pressure from its largest backer, SoftBank, concerned about valuation and repayment of a $2.2 billion loan Agarwal secured for a stake increase. OYO aims to meet stricter earnings targets before debuting to maximize value, even as unlisted share prices have dropped 65% since the first IPO attempt.
How OYO’s Numbers Have Shifted
- FY24: Maiden profit of ₹229.6 Cr. Revenue dipped 1.3% to ₹5,389 Cr; EBITDA at ₹887.8 Cr.
- FY25: Net profit at ₹244.8 Cr (deferred tax gain aided result), operating revenue up 16% to ₹6,252.8 Cr, EBITDA over ₹1,083 Cr.
- Q1 FY26: PAT doubled to ₹200 Cr, revenue jumped 47% YoY to ₹2,019 Cr; gross booking value leapt 144% to ₹7,227 Cr on hotel openings, premiumization, and improved utilization.
- OYO recorded its tenth consecutive EBITDA-positive quarter in Q1 FY26, reflecting sustained, if uneven, recovery and operational discipline.
Rebranding and Global Premium Play
OYO is rebranding its parent entity to ‘PRISM Life’—a new corporate identity to align with its premium push and diversified portfolio. OYO’s consumer-facing budget and mid-scale offerings continue under the core ‘OYO’ brand, while its premium segment is scaling fast.
Read this: OYO Announces ₹3 Lakh Cash Prize For the Best Name For Its Parent firm
Its new ‘Sunday’ hotel brand is at the forefront of this shift—launched in London’s Canary Wharf and expanding rapidly across the UK (six recent Sunday hotels include Cardiff, Exeter, Winchester, and more), as well as Southeast Asia and the Middle East. OYO invested in refurbishments, tech, and staff, aiming to double UK premium hotels to 25 by end-2026.
Looking Ahead
OYO is aiming for ₹1,100 Cr PAT and ₹2,000 Cr EBITDA in FY26, betting on continued premiumization, expansion in the UK and overseas, and a robust Indian travel sector. The company’s financial discipline, coupled with rebranding and international strategy, may finally set the stage for a successful IPO—if it can sustain momentum, satisfy investors, and weather market headwinds.
Read this: OYO Has Invested Over Rs 500 Crore in the United Kingdom Says Founder Ritesh Agarwal
Final Thoughts
OYO’s dramatic turnaround—profitability, expansion, rebranding, and a renewed IPO push—signals the resilience and ambition of India’s new-age hospitality leaders. The next few quarters will be critical as OYO prepares for its third, and potentially defining, shot at the public markets.
