OYO, the hospitality giant, has posted a significant surge in its profit after tax (PAT), soaring nearly sixfold to ₹166 crore in the third quarter of FY25. This marks a sharp rise from the ₹25 crore it recorded in the same period last year, sources told Inc42.
The company also experienced substantial revenue growth, with earnings rising 31% to ₹1,695 crore in Q3 FY25 compared to ₹1,296 crore in the corresponding quarter of the previous year. This boost reflects OYO’s ongoing efforts to expand its business and optimize its financial performance.
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Despite these notable gains, OYO has remained tight-lipped and has not responded to Inc42’s inquiries regarding its latest financial performance.
Provisional data suggests that the company’s adjusted EBITDA reached ₹249 crore in the third quarter of FY25, showing a 22% increase from the ₹205 crore reported in Q3 FY24. This improvement highlights the company’s ability to enhance profitability while navigating the challenges of the hospitality industry.
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Industry insiders have noted that while OYO has successfully demonstrated its ability to run a profitable business, concerns about its revenue growth had persisted. However, the company’s renewed emphasis on expanding its topline appears to have paid off, as evidenced by the 31% jump in revenue.
“OYO has always been a company with strong operational capabilities, but questions remained about its growth trajectory. With this quarter’s performance, it has shown a clear focus on boosting revenues while maintaining profitability,” a source familiar with the matter said.
The hospitality sector has been recovering steadily post-pandemic, and OYO’s latest numbers indicate that it is capitalizing on increased travel demand. Whether this momentum continues in the coming quarters remains to be seen, but for now, the company appears to be on a solid growth path.
