OYO has achieved a remarkable milestone in the fiscal year 2024–25 (FY25), reporting a profit after tax (PAT) of ₹623 crore, a 2.7-fold increase from ₹229 crore in the previous fiscal year. This significant growth positions OYO as India’s most profitable startup, reflecting the company’s strategic initiatives and operational excellence.
Strategic Initiatives Driving OYO Profitability
Premiumization of Offerings
OYO’s focus on premium offerings has been a key driver of its profitability. The company expanded its Company-Serviced Portfolio, including mid-segment Townhouse Hotels and the Sunday hotel brand, across India, the UK, Southeast Asia, and the Middle East. This strategic move attracted a higher-spending customer base and improved overall margins.
Global Expansion and Acquisitions
OYO’s global footprint now encompasses approximately 22,700 hotels and 119,900 homes, with 91,300 listings on its platform. The integration of G6 Hospitality and the launch of over 30 Sunday Hotels in the last 12 months have further strengthened its market position.
Operational Efficiency
The company’s adjusted EBITDA grew by 27% year-on-year to ₹1,132 crore in FY25, marking its tenth consecutive quarter of EBITDA profitability. This consistent performance underscores OYO’s commitment to operational efficiency and sustainable growth.
Financial Performance Highlights
- Revenue Growth: OYO’s revenue increased by 20% year-on-year to ₹6,463 crore in FY25, driven by a 54% rise in Gross Booking Value (GBV) to ₹16,436 crore.
- Earnings Per Share (EPS): The company’s EPS surged by 158% to ₹0.93 in FY25, up from ₹0.36 in the previous fiscal year.
- Quarterly Performance: In Q4 FY25, OYO reported a GBV of ₹6,379 crore, a 126% increase compared to the same period in FY24. Revenue for the quarter stood at ₹1,872 crore, up 41% year-over-year, while adjusted EBITDA rose by 61% to ₹442 crore.
Future Outlook
OYO’s impressive financial performance in FY25 sets a strong foundation for its future endeavors. The company is expected to continue its focus on premium offerings and global expansion. Additionally, OYO is preparing for an initial public offering (IPO), with plans to go public by March next year, subject to market conditions.
OYO’s journey from a startup to India’s most profitable one is a testament to its strategic vision and execution. With a robust business model and a clear focus on growth, OYO is well-positioned to capitalize on future opportunities in the hospitality sector.