Hospitality firm OYO has become India’s most profitable startup after reporting a profit after tax (PAT) of $72 million (₹5.98 billion) for the fiscal year ended March 31 2025, founder Ritesh Agarwal announced during an employee town hall. The figure marks a 172% increase from the $27 million (₹2.24 billion) PAT recorded in FY24.
According to unaudited financial report, OYO’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $132 million (₹10.96 billion) in FY25, up 27% from $104 million (₹8.63 billion) in the previous fiscal year. This represents the company’s 10th consecutive quarter of EBITDA profitability.
The strong financial performance was reflected in OYO’s earnings per share (EPS), which rose 158% to $0.93 in FY25 from $0.36 in FY24, underscoring the company’s focus on enhancing shareholder value.
OYO’s gross booking value (GBV) surged 54% to $1.92 billion (₹159.36 billion) in FY25, while revenue grew 20% year-on-year to $754 million (₹62.58 billion). The growth was fuelled by the company’s premium offerings under its Company-Serviced Portfolio, which includes mid-segment Townhouse Hotels and Sunday Hotels, a brand promoted by SoftBank and Oravel. These properties operate across India, the UK and the Southeast Asia, Middle East and Europe (SEAME) region.
The company also benefited from the successful integration of G6 Hospitality, a US-based hotel chain acquired in Q3 FY25. Over the past 12 months, OYO expanded its premium segment by launching more than 30 Sunday Hotels in markets including India, Saudi Arabia, the UAE and Southeast Asia. In the SEAME region alone, company-serviced properties increased from seven in Q4 FY24 to 256 in Q4 FY25.
The fourth quarter of FY25 was OYO’s strongest to date, with GBV reaching $744 million (₹61.75 billion), a 126% increase compared to the same period last year. This growth was driven by expansion in India, the US and SEAME, as well as the G6 Hospitality acquisition. Revenue for Q4 rose 41% year-on-year to $218 million (₹18.09 billion), while adjusted EBITDA climbed 61% to $51 million (₹4.23 billion).
The company’s hotel storefronts grew by 25% during the quarter, aided by the addition of G6 properties, while its homes segment expanded by 42%. Hotel GBV per storefront per month jumped 161% to $8,940 (₹742,000), highlighting the success of OYO’s premiumisation strategy and acquisitions.
OYO’s global portfolio now comprises approximately 22,700 hotels and 119,900 homes, alongside 91,300 listings on its platform. The company strengthened its position in developed markets, particularly the US, where storefronts grew 55% and GBV increased 45% in FY25.
The improved profitability and credit metrics have drawn recognition from international rating agencies, with Moody’s upgrading OYO’s rating citing consistent earnings growth.
For FY26, Agarwal has set a target of exceeding $233 million (₹19.34 billion) in EBITDA and $1.31 EPS, building on its current annualised EBITDA run-rate of $198 million (₹16.43 billion). The company expects its US operations to be a key growth driver, projecting a 3.4x increase in consolidated GBV compared to FY25.
In FY25, OYO recorded the highest PAT growth among leading hospitality players, including IHCL, Lemon Tree, Ixigo and Royal Orchid. While its revenue outperformed Lemon Tree, Ixigo and Royal Orchid, it remained behind IHCL.
While OYO has achieved profitability, it continues to refine its operational model, including addressing occasional partner concerns over contract terms and payment cycles, as it scales in competitive markets like India and the US.
Financial figures in USD are converted using the exchange rate of 1 USD = ~85.7 INR.
