OYO Achieves Record Profitability, Setting a New Benchmark for Indian Startups

OYO, the global hospitality chain, has marked a historic milestone by becoming the most profitable Indian startup, reporting a profit after tax (PAT) of approximately $72 million for the fiscal year ending March 31, 2025. This represents a staggering 172% increase from the previous year's $27 million, underscoring the company's rapid growth and operational efficiency. The announcement was made by OYO Founder Ritesh Agarwal during an employee town hall, highlighting the company's robust financial health and its strategic focus on premium offerings and international expansion.

The company's adjusted EBITDA for FY25 stood at $132 million, a 27% increase from the previous year, marking its tenth consecutive quarter of EBITDA profitability. This financial success is attributed to OYO's diversified portfolio, including its premium segments like Townhouse Hotels and Sunday Hotels, and the successful integration of G6 Hospitality. The company's earnings per share (EPS) also saw a significant jump to $0.93, up 158% from $0.36 in FY24, reflecting enhanced shareholder value.

OYO's Gross Booking Value (GBV) surged by 54% to $1.92 billion, with revenues growing by 20% to $754 million. The fourth quarter of FY25 was particularly strong, with GBV reaching $744 million, a 126% increase year-over-year, driven by the company's expanding hotels business and the acquisition of G6 Hospitality. The company's strategic focus on premiumization and international markets, especially in the US and SEAME regions, has been a key driver of this growth.

With a global presence encompassing approximately 22,700 hotels and 119,900 homes, OYO has significantly strengthened its position in developed markets. The company's US operations, in particular, have seen a 55% growth in storefronts and a 45% increase in GBV during FY25. Moody's upgrade of OYO's rating reflects the company's improved profitability and credit metrics, signaling strong confidence in its business model and growth trajectory.

Looking ahead, OYO has set ambitious targets for FY26, aiming for an EBITDA of over $233 million and an EPS of $1.31. The company's focus on scaling its operations, particularly in the US, and its continued emphasis on premium offerings are expected to drive further growth. OYO's financial performance not only sets a new benchmark for Indian startups but also positions it as a formidable player in the global hospitality industry, with implications for competitors and the sector at large.