OYO is poised for a remarkable financial performance in the fourth quarter of FY25, with founder Ritesh Agarwal projecting a revenue surge of 60% year-on-year, targeting INR 2,100 crore. This anticipated growth underscores OYO’s commitment to sustainable and profitable expansion.
Key Highlights of OYO’s Q4 FY25 Revenue Projection
Agarwal shared in an internal email that the company’s revenue is expected to reach INR 2,100 crore, largely attributed to the successful integration of G6 Hospitality, which alone is expected to contribute INR 275 crore. Even without this acquisition, OYO’s organic revenue growth stands strong at 42%, projecting revenues of INR 1,886 crore.
Strategic Acquisitions Fueling Growth
The acquisition of G6 Hospitality, which operates popular motel chains like Motel 6 and Studio 6 in the US, has been pivotal for OYO. This strategic move aims to enhance OYO’s presence in international markets and is expected to significantly boost its financial performance in FY26, with Agarwal forecasting a profit after tax of INR 1,100 crore.
Expansion Plans Ahead of IPO
OYO is not just focusing on domestic growth; it has plans to invest heavily in international markets. The company aims to invest £50 million (approximately INR 450 crore) in the UK over the next three years to bolster its premium hotel offerings. Additionally, a $10 million (around INR 86 crore) investment will be directed towards enhancing G6 Hospitality’s digital assets.
IPO Pressure and Future Prospects
As OYO prepares for a potential IPO, there is increasing pressure from creditors for Agarwal to expedite the public offering process. The company initially filed its draft papers with SEBI in 2021 for an INR 8,430 crore issue but has faced delays. Agarwal’s ability to navigate these challenges will be crucial as he aims to avoid repaying $383 million in loans if the IPO does not materialize by October.