OYO Achieves Record Profitability, Becoming India's Most Profitable Startup
OYO has emerged as India's most profitable startup with a $72 million profit in FY25, marking a significant milestone in the hospitality sector and showcasing the company's rapid growth and strategic expansions.
OYO, the global hospitality chain, has set a new benchmark by becoming the most profitable Indian startup, with a profit after tax (PAT) of approximately $72 million for the fiscal year ending March 31, 2025. This represents a 172% increase from the previous year's $27 million, underscoring the company's robust financial health and operational efficiency.
The company's adjusted EBITDA also saw a significant uptick, reaching $132 million in FY25, a 27% increase from the previous fiscal year. This marks OYO's tenth consecutive quarter of EBITDA profitability, a testament to its sustainable business model and strategic focus on premium offerings. The earnings per share (EPS) surged to $0.93, up 158% from $0.36 in FY24, highlighting the company's commitment to enhancing shareholder value.
OYO's financial success is attributed to a 54% increase in Gross Booking Value (GBV) to $1.92 billion and a 20% rise in revenue to $754 million. The growth was fueled by the expansion of its premium offerings, including Townhouse Hotels and Sunday Hotels, across India, the UK, and the SEAME region, as well as the successful integration of G6 Hospitality.
The fourth quarter of FY25 stood out as OYO's strongest, with GBV hitting $744 million, a 126% increase year-over-year, and revenue growing by 41% to $218 million. The company's strategic acquisitions and premiumization efforts have paid off, with hotel GBV per storefront per month soaring by 161% to approximately $8,940.
With a global presence encompassing 22,700 hotels and 119,900 homes, OYO has significantly strengthened its position in developed markets, especially in the US, where it recorded 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.
Looking ahead to FY26, OYO aims to achieve an EBITDA of over $233 million and an EPS of $1.31, leveraging its current annualized EBITDA run-rate of $198 million. The US operations are expected to be a key growth driver, with a projected consolidated GBV growth of 3.4x compared to FY25.