Oyo is expected to report a profit after tax (PAT) of Rs 1,100 crore in 2025-26, according to the company’s founder Ritesh Agarwal. If true, this will be significantly higher than Rs 229.6 crore reported in 2023-24.
Agarwal shared the profit projections with the company’s management recently, according to people familiar with the matter.
Between April and December in the current year, Oyo has reported a net profit of Rs 457 crore. The company became profitable for the first time in 2023-24.
One of the persons mentioned above said that in FY25, the net profit is likely to be in the range of Rs 600-750 crore.
“The business is improving and he is betting big on the acquisitions and international expansion,” he said.
In December, Oyo completed its acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6. The acquisition was made for $525 million in cash.
Before that, in August, it acquired Paris-based Checkmyguest for $27.4 million.
The firm has also been raising money in the secondary market to strengthen its market position. In December, Nuvama Wealth acquired the company’s shares worth Rs 100 crore.
It has also been preparing for an IPO, which has been repeatedly delayed since 2021. It is targeting a valuation of $5 billion.
According to a recent report, if the company doesn’t list by October, its lenders, including Mizuho Financial Group, would want Agarwal to pay up the $383 million he owes from a loan package.
They might grant him an extension until 2027, but only if the IPO happens this year. Oyo was founded in 2012 by Agarwal and offers holiday homes, casino hotels, and budget hotels. Agarwal holds around 32% of the company’s stake. The largest investor SoftBank owns more than 40%.
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