IPO-bound OYO posted a profit after tax (PAT) of over ₹200 crore in the first quarter of FY26 (Q1FY26), more than doubling from ₹87 crore in the same period last year (Q1FY25). The hospitality firm attributed the sharp improvement in its bottom line to strong revenue growth from premium brands such as Townhouse and Sunday, alongside tighter cost controls and a sharper focus on customer experience.
In a notification sent to its shareholders, OYO stated that its revenue grew to Rs 2,019 crore, up 47% from the corresponding quarter last year. The Gross Booking Value (GBV) reached Rs 7,227 crore in Q1 FY26, marking a significant 144% increase year-on-year.
The company has sought approval to issue bonus shares in a 1:1 ratio which will double its authorised share capital to Rs 24,31,13,59,300. OYO has also proposed increasing the ESOP pool by 8.8 crore stock options.
As per the notification to shareholders, accessed by TNIE, for the full fiscal year 2025, OYO’s gross booking value (GBV) stood at Rs 16,250 crore and revenue reached Rs 6,252 crore.
The company maintained its profitability with an operational PAT of Rs 411 crore and an operational EPS of Rs 0.64 per share last financial year. The net profit for FY25 came at 244 due to the higher cost of one-time loan repayments.
“These repayments are expected to generate a recurring annual benefit of approximately Rs 50 crore in PAT—a benefit that is already evident in our strong Q1 FY26 performance. As a reference, IHCL—the leading hotel company in India—delivered Q1 FY26 EBITDA of INR 637 crore and PAT of INR 296 crore, demonstrating its continued leadership and the bullishness in the hospitality industry,” OYO’s founder Ritesh Agarwal wrote in an email to the management committee.
He also stated that OYO is advancing premiumisation while retaining its strong focus on the value segment.
"Our in-house tech stack, built over years, acts as a key competitive advantage and cost-saving lever, utilising innovations like dynamic locks and virtual check-ins. Additionally, the strategic acquisition of G6 is showing early success through rapid integration and synergies in technology, operations, and marketing. New direct customer initiatives, such as the My6 app and expanded large account pools, are strengthening our growth trajectory," the message stated.
Agarwal also informed shareholders regarding ongoing efforts, including the expansion of Sunday Hotels, and properties in the US under the Motel 6 brand.
"By taking these strategic investments in one go, we have laid the groundwork for sustainable and profitable growth. As these investments start delivering returns, we anticipate a much stronger performance in the coming periods," the message added.