OYO recorded a 172% increase in net profit for FY25, reaching ₹623 crore (US$72.6 million), up from ₹229 crore (US$26.6 million) in FY24. The announcement was made by founder and CEO Ritesh Agarwal during a company town hall.

The improvement follows several challenging fiscal years. In FY23, OYO posted a ₹1,000 crore loss. Losses were even higher in FY21 and FY20, amounting to ₹3,943.8 crore and ₹13,122.8 crore, respectively.

In FY24, the company recorded its first-ever annual profit of ₹100 crore. That milestone followed eight consecutive quarters of profitability. Cost-cutting measures and refinancing $660 million in debt helped reduce annual interest expenses by approximately ₹124–141 crore. Operating expenses as a percentage of revenue dropped from 19% to 14%.

Strong Revenue and Booking Value Fuel Growth

Revenue grew 20% year-on-year, from ₹5,388 crore (US$628 million) in FY24 to ₹6,463 crore (US$753.188 million) in FY25. OYO also reported a 54% year-on-year increase in gross booking value, reaching ₹16,436 crore (US$1.9 billion).

Adjusted EBITDA rose 27% to ₹1,132 crore in FY25, compared to ₹889 crore in the previous year. However, the figure was lower than the ₹1,550 crore projected earlier by Agarwal, missing the estimate by nearly 26%.

The fourth quarter of FY25 contributed significantly to the annual results. Q4 revenue jumped 41% year-on-year to ₹1,872 crore, while EBITDA surged 61% to ₹442 crore.

Strategic Shift Toward Sustainable Business Segments

OYO’s profitability reflects a shift from aggressive expansion to selective, high-margin growth. The company onboarded 15,000 corporate accounts and added over 400 properties in spiritual tourism locations during FY25.

OYO scaled back international operations to focus on geographies with higher returns. Operating cost efficiency improved further, with expenses dropping to 14% of revenue in FY24 from 19% in FY23.

The company added 30 new properties under its premium ‘Sunday Hotels’ brand over the past 12 months in India, Saudi Arabia, the UAE, and Southeast Asia. In August 2024, OYO announced plans to launch 25 Sunday Hotels during FY25.

Positioned for Growth in India’s Expanding Travel Market

OYO’s strong performance aligns with the broader growth of India’s travel and hospitality sector. The country’s travel market is expected to grow from $75 billion in FY20 to $125 billion by FY27. The hotel segment is projected to expand from $32 billion to $52 billion over the same period.

Government support has also provided tailwinds. The Union Budget 2025–26 allocated ₹2,541.06 crore (US$291.07 million) for tourism infrastructure. OYO’s 54% year-on-year increase in gross booking value suggests it is capturing this demand effectively.

The number of managed properties increased from just seven in Q4 FY24 to 256 in Q4 FY25. OYO’s global footprint now includes 22,700 hotels, 1,19,900 homes, and 91,300 listings across its platform.

OYO Defers IPO Timeline Amid Market Volatility

OYO’s planned public listing, originally expected by October 2025, has been delayed. According to reports, investor SoftBank, holding over 30% in the company, advised postponement due to ongoing market uncertainty. The IPO is now anticipated by March next year.

The company previously filed for an IPO in 2022, aiming to raise ₹8,430 crore (approximately US$1 billion), but withdrew the plan. A second attempt in 2023 through a confidential DRHP was also withdrawn before OYO raised $450 million via dollar bonds.

Over the past year, OYO completed two acquisitions—Paris-based Checkmyguest and U.S.-based G6 Hospitality.

PHOTO: OYO

This article was created with AI assistance.