OYO's Profit Surge: Riding the Wave of Revenue Growth and Strategic Acquisitions

OYO, a travel tech unicorn, has recorded a substantial profit growth, achieving Rs 166 crore PAT in the third quarter of FY25, up from Rs 25 crore year-on-year. The company's revenue rose 31% to Rs 1,695 crore. Key market performance in India and the US fueled this growth alongside strategic acquisitions.

OYO, the travel technology unicorn, made remarkable strides in profitability, reporting a profit after tax (PAT) of Rs 166 crore for Q3 FY25. This is a significant leap from Rs 25 crore in the same period last year, signifying nearly a sixfold increase.

The company's revenue for the third quarter reached Rs 1,695 crore, marking a 31% rise from the previous year's Rs 1,296 crore. This growth reflects a notable change from the flat topline trajectory seen in FY24. According to documents from PTI, OYO's adjusted EBITDA in the October-December period was Rs 249 crore, a 22% increase from Rs 205 crore year-on-year.

OYO's financial upswing excluded G6 Hospitality's results, acquired late December. Strategic expansions in core markets like India and the US, coupled with key acquisitions, have powered this growth, prompting Moody's to upgrade OYO's rating to B2. The company foresees an EBITDA of USD 200 million in FY25-26 with full earnings consolidation.

(With inputs from agencies.)