OYO's Q1 PAT More than Doubles to ₹200 Cr; Proposes 1:1 Bonus Share Issuance

IPO-bound travel tech platform OYO's profit after tax (PAT) more than doubled to ₹200 crore in the first quarter, on the back of robust revenue growth, Founder Ritesh Agarwal shared in an email to the top management on Friday.

The email, accessed by PTI, also mentions that the company's revenue grew 47 per cent to ₹2,019 crore in the April-June period, from ₹1,371 crore in the year-ago period.

The revenue growth was led by premiumisation of hotel inventory and better room utilisation, Agarwal said in a email.

The gross booking value (GBV) reached ₹7,227 crore in the first quarter of the current fiscal year, marking a significant 144 per cent increase year-on-year from ₹2,966 crore a year earlier.

OYO had recorded a profit after tax of ₹87 crore in the corresponding quarter of the previous year.

In a letter to shareholders, the company has sought approval to issue bonus shares in a 1:1 ratio, which will double its authorised share capital to ₹24,31,13,59,300.

It has also proposed increasing the ESOP pool by 8.8 crore stock options.

"OYO's two years of net profits has now allowed us to continue to focus on topline growth which has been at 47 per cent -- which is meaningful given the relatively flat topline not too long back in FY24," Ritesh said in the email.

As per the intimation to shareholders, for the full FY25, OYO's net profit stood at ₹245 crore, after adjusting for one-time exceptional cost on account of loan repayments.

The letter to shareholders stated that OYO is advancing premiumisation "while retaining our strong focus on the value segment, addressing a broad spectrum of customer needs".

"Our in-house tech stack, built over years, acts as a key competitive advantage and cost-saving lever, utilising innovations like dynamic locks and virtual check-ins. Additionally, the strategic acquisition of G6 is showing early success through rapid integration and synergies in technology, operations, and marketing. New direct customer initiatives, such as the My6 app and expanded large account pools, are strengthening our growth trajectory," the letter stated.

It further informed shareholders regarding ongoing efforts, including expansion of Sunday Hotels, and properties in the US under the Motel 6 brand.

"By taking these strategic investments in one go, we have laid the groundwork for sustainable and profitable growth. As these investments start delivering returns, we anticipate a much stronger performance in the coming periods," the letter added.

As per the notification to shareholders, accessed by PTI, for the full FY25, OYO demonstrated strong operational performance with booking value (GBV) of ₹16,250 crore and revenue reaching ₹6,252 crore.

The company maintained its profitability with an operational PAT of ₹411 crore and an operational earning per share (EPS) of ₹0.64.

In May, PTI had reported that OYO has become the most profitable Indian startup with a profit after tax of ₹623 crore in the 2024-25 financial year, as per its unaudited financials, without accounting for the one-time exceptional loan repayment cost.