OYO's Profitable Rise: A Story of Strategic Shifts and Financial Resilience

OYO, the hospitality chain launched by Ritesh Agarwal, has registered a key turnaround with its first-ever net profit of ₹229 crore in FY24, beating initial estimates of ₹100 crore. The achievement comes on the heels of eight successive quarters of a positive Adjusted EBITDA, with 215% year-on-year growth being the best among them. While the revenue of the company also dipped 1.3% year-on-year to ₹5,388.78 crore in FY24.

 

During FY25, OYO will register significant revenue growth, with the estimates pointing to a 60% jump in Q4 to ₹2,100 crore. The strategic buys of G6 Hospitality and Checkmyguest by the company have strengthened its position in the market. OYO is now looking to achieve a profit after tax (PAT) of ₹1,100 crore in FY26, which will be much above its FY24 levels.

 

As OYO gears up for an IPO, it is under pressure from lenders to list by October this year. The company is eyeing a valuation of $5 billion. With its emphasis on profitability and global expansion, OYO is well-placed to continue its growth path, led by strong performances in core markets such as India and the US, as well as emerging markets in Southeast Asia and the Middle East.

 

Source: Economic Times, Business Standard, Financial Express