OYO Sees Sixfold Profit Increase Ahead of Valentine’s Day

OYO is experiencing remarkable growth as it capitalizes on increased demand for hospitality services. The company reported an impressive profit of INR 166 crores in the December quarter, marking a sixfold increase compared to last year’s profit of INR 25 crores. With total revenue reaching INR 1,695 crores, a 31% increase from INR 1,296 crores in the same period last year, OYO is setting new performance records. The company also reported an EBITDA of INR 249 crores, representing a 22% increase from INR 205 crores last year. A significant surge in Gross Booking Value (GBV) was also noted, climbing 33% to INR 3,341 crores from INR 2,510 crores last year.

Last Year’s Loss Overview

These figures exclude the financial results from G6 Hospitality, which was acquired in the third week of December. In the first nine months of FY25, OYO recorded a profit of INR 457 crores, a significant turnaround from last year’s loss of INR 111 crores. This demonstrates OYO’s ability to generate profit while addressing concerns regarding revenue growth. The company’s renewed focus on revenue generation is yielding favorable outcomes, as shown by the latest profit figures.

Reasons Behind the Profit Surge

OYO’s impressive growth can be attributed to strong performances in major markets such as India and the United States, as well as emerging markets in Southeast Asia and the Middle East. By premiumizing its services in India and acquiring established players like G6 Hospitality and the Paris-based rental service Checkmyguest, OYO has strategically positioned itself for sustained growth.

Future Outlook and Market Confidence

Global rating agency Moody’s has upgraded OYO’s rating from B3 to B2, reaffirming a stable outlook for the company. Moody’s predicts that OYO’s EBITDA could reach $200 million in FY25-26. This rating upgrade reflects growing investor confidence in OYO’s business model and its ability to maintain profitability, especially after a challenging fiscal year last year where it reported substantial losses.

Key Financial Metrics at a Glance