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OYO Achieves Record Profitability and Sets Sights on Further Growth

By Editorial Staff

TL;DR

OYO's strategic expansions and premium offerings have propelled it to become the most profitable Indian startup, offering investors a 158% increase in EPS to $0.93.

OYO achieved a 172% increase in PAT to $72 million in FY25, with a 27% growth in adjusted EBITDA to $132 million, marking its 10th consecutive quarter of profitability.

OYO's growth and profitability enhance the hospitality sector, creating more job opportunities and improving travel experiences globally, making tomorrow better for travelers and employees alike.

OYO now operates approximately 22,700 hotels and 119,900 homes worldwide, with its premium Sunday Hotels expanding rapidly across India, Saudi Arabia, UAE, and Southeast Asia.

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OYO Achieves Record Profitability and Sets Sights on Further Growth

OYO, the global hospitality chain, has reported a profit after tax (PAT) of approximately $72 million for the fiscal year ending March 31, 2025, marking a 172% increase from the previous year's $27 million. This financial milestone not only cements OYO's status as the most profitable Indian startup but also showcases its robust growth trajectory in the competitive hospitality sector. The company's adjusted EBITDA grew by 27% year-over-year to $132 million, achieving its tenth consecutive quarter of EBITDA profitability.

The remarkable financial performance is largely due to OYO's strategic emphasis on premium offerings and its aggressive international expansion. The company witnessed a 54% surge in Gross Booking Value (GBV) to $1.92 billion and a 20% increase in revenue to $754 million. Key contributors to this growth include the launch of over 30 Sunday Hotels and the successful integration of G6 Hospitality. The fourth quarter of FY25 emerged as particularly strong, with GBV soaring to $744 million, a 126% increase from the previous year, and revenue climbing by 41% to $218 million.

With a global presence now encompassing around 22,700 hotels and 119,900 homes, OYO has seen a 55% growth in storefronts in the US alone. This expansion, coupled with improved profitability and credit metrics, has earned recognition from international rating agencies such as Moody's. Looking forward, OYO has set ambitious targets for FY26, aiming for an EBITDA of over $233 million and an EPS of $1.31, with its US operations expected to play a pivotal role in driving this growth.

This financial turnaround and strategic positioning underscore OYO's resilience and adaptability in a rapidly evolving global hospitality landscape. For business and technology leaders, OYO's success story offers valuable insights into the potential of strategic diversification and international expansion in achieving sustainable growth and profitability.

Curated from News Direct

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Editorial Staff

Editorial Staff

@editorial-staff

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