OYO, the travel tech giant, has posted a profit after tax (PAT) of ₹166 crore in the third quarter of FY25, marking an almost sixfold increase from ₹25 crore in the same period last year, according to sources.
The company also saw a strong 31% jump in revenue, reaching ₹1,695 crore, compared to ₹1,296 crore a year earlier. This growth comes after a period of stagnation in FY24, signaling a clear turnaround in OYO’s financial performance.
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Operating Performance Sees Steady Improvement
OYO’s adjusted EBITDA for the October-December quarter stood at ₹249 crore, reflecting a 22% rise from ₹205 crore in Q3 FY24, as per documents reviewed by PTI. Additionally, the company’s gross booking value (GBV) surged 33% to ₹3,341 crore, up from ₹2,510 crore in the same quarter last year.
It is important to note that these figures do not include the financials of G6 Hospitality, as the acquisition was completed in the third week of December.
Growth Driven by Core and Emerging Markets
A source close to the company revealed that while OYO had already proven its ability to operate profitably, concerns lingered over its revenue growth trajectory. The renewed focus on expanding topline revenue has now yielded results, with a significant 31% increase in revenue.
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The company’s strong performance was driven primarily by its core markets—India and the US, while emerging markets in Southeast Asia and the Middle East also played a crucial role in boosting revenue.
Strategic Moves Fuel Expansion
OYO has been aggressively expanding and diversifying its portfolio through strategic acquisitions. Key initiatives include:
• Premiumisation of its India portfolio, aimed at improving offerings in the mid-to-premium hotel segment.
• Acquisition of US-based G6 Hospitality, a major player in the budget and midscale hotel segment.
• Acquisition of Paris-based rental home operator Checkmyguest, strengthening OYO’s presence in the European short-term rental market.
Moody’s Upgrades OYO’s Credit Rating
In a further boost to its financial standing, global credit rating agency Moody’s recently upgraded OYO’s rating from B3 to B2, maintaining a stable outlook. Moody’s estimates that OYO’s EBITDA will reach $200 million in FY25-26, which will be the first full fiscal year reflecting earnings from its newly acquired businesses.
With a renewed focus on profitability, expansion, and premiumisation, OYO appears to be entering a new phase of accelerated growth, reinforcing its position as a leading player in the global travel and hospitality sector.
