OYO posts PAT of over ₹200 crore in H1 FY26
Profit more than doubled from ₹87 crore in Q1 FY25
Revenue up 47% YoY to ₹2,019 crore
SoftBank-backed hospitality platform, OYO, has posted a profit after tax of over ₹200 crore in the first half of current financial year, according to an internal note from founder Ritesh Agarwal to the management committee and shareholders, reviewed by The Economic Times. This shows that OYO’s profit after tax more than doubled year-on-year, climbing from ₹87 crore in Q1 FY25.
The hospitality start-up has also sought approval for issuing bonus shares in a 1:1 ratio, which will double its authorised share capital to ₹24,31,13,59,300. The company has further proposed expanding its ESOP pool by 8.8 crore options, the report said.
Its revenue also rose 47% to ₹2,019 crore compared with ₹1,371 crore a year earlier, while gross booking value (GBV) surged 144% to ₹7,227 crore in Q1 FY26 from ₹2,966 crore in Q1 FY25. The company has attributed the growth to new hotel launches, strong-store performance, premiumisation, and better room utilization, the ET report added.
“Our two years of PAT profits now allow us to continue focusing on topline growth, which stands at 47% this quarter, a particularly meaningful achievement given our relatively flat topline in financial year 2024. Our net profit for financial year 2025 was ₹244 crore, which reflects the impact of one-time accelerated loan repayment costs,” Agarwal said as quoted by the report.
OYO IPO Plans
The start-up plans to file its Draft Red Herring Prospectus (DRHP) in November, eyeing a $7-8 billion valuation for its IPO. The company is expected to approach its board with the proposal soon.
"While we cannot comment on any timelines related to OYO's DRHP or IPO related plans, since it's a decision that will be guided by OYO's Board of Directors and will be solely at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for its stakeholders," the company spokesperson had said, as quoted by PTI.
Discussions with key banking partners have ramped up in recent weeks, with valuation guidance now pegged at $7-8 billion (around ₹70 per share), potentially in the range of 25-30 times the EBITDA.
SoftBank remains one of OYO's largest shareholders. Insiders indicate that the prospective filing will showcase OYO's latest Q1 financial performance, capitalising on a period of strong growth and improved fundamentals.
OYO is working on the rollout of a new parent brand identity that will unify its expanding portfolio.
Earlier this year, OYO founder and CEO Ritesh Agarwal sought name suggestions for its parent entity Oravel Stays Limited via his social media platforms. The name chosen through the exercise may end up being the new name of the group.
