In an incredible turn of events, OYO, a unicorn in the hotel industry, became the most profitable company in India in FY25, announcing a record Profit After Tax (PAT) of ₹623 crore. This comes after the SoftBank-backed startup’s PAT of ₹229 crore in FY24, which represented a 172% year-over-year rise and the beginning of a new period of steady profitability and strategic expansion.
In this article, we will take a comprehensive look into OYO’s extraordinary transformation in FY25—from posting record profits and surging bookings to expanding its global footprint and redefining operational efficiency—while also examining what this milestone means for the broader Indian startup ecosystem and its pursuit of sustainable growth.
From Struggles to Strength: The FY25 Milestone
FY25 is a clear turning point for a firm that was previously constantly criticized for its rapid growth and growing losses. Ritesh Agarwal, the CEO and creator of OYO, characterized the year as historic due to its outstanding operational metrics and meticulous execution.
OYO’s adjusted EBITDA increased from ₹889 crore in FY24 to ₹1,132 crore, a 27% year-over-year increase. The fact that this is the company’s tenth straight quarter of EBITDA profitability is noteworthy and demonstrates its emphasis on steady performance and sound financial management.
Adding to shareholder delight, the company’s Earnings Per Share (EPS) jumped by 158% to ₹0.93, signaling substantial value creation.
Surging Bookings and Revenue Growth Power Performance
Much of this profitability has been driven by a sharp rise in Gross Booking Value (GBV), which climbed 54% to ₹16,436 crore in FY25. OYO also recorded a 20% jump in revenue, clocking ₹6,463 crore for the fiscal year.
In Q4 FY25 alone, OYO posted impressive numbers:
- GBV: ₹6,379 crore (126% YoY growth)
- Revenue: ₹1,872 crore
- Adjusted EBITDA: ₹442 crore
- This surge was largely fuelled by OYO’s strategic focus on its premium product offerings, especially:
- The Company-Serviced Portfolio
- The expanding network of mid-scale Townhouse hotels
- The launch of over 30 Sunday brand hotels across India, Southeast Asia, the Middle East, and the UK
These offerings have not only enhanced customer experience but also delivered higher margins, contributing directly to the bottom line.
Global Expansion: A Key Growth Engine
Another major contributor to OYO’s FY25 success is its robust international expansion strategy. As of now, the platform hosts:
- 22,700 hotels
- 119,900 homes
- 91,300 active listings across global markets
The company’s bold acquisition of G6 Hospitality in 2024 has further strengthened its foothold in the U.S. and other developed markets, adding significant brand equity and revenue potential. This move reflects OYO’s evolving vision: to not just survive but dominate globally in the hospitality-tech space.
Setting a New Standard for Indian Startups
OYO’s turnaround is more than a corporate success story—it’s a signal of maturity for the Indian startup ecosystem. As many high-growth ventures struggle with the trade-off between scale and sustainability, OYO has demonstrated that profitable growth is possible with the right mix of operational efficiency, customer focus, and international ambition.
It’s a moment of vindication for Ritesh Agarwal and the entire OYO team—who have weathered regulatory challenges, pandemic disruptions, and investor skepticism to deliver India’s best-performing startup year yet.
Credits: Rediff Money
What Lies Ahead
With a strong financial base, a scalable model, and a global presence, OYO is now poised for its next phase of growth. Analysts expect the company to explore public listing avenues or raise additional growth capital, especially as global markets recover and travel demand stabilizes.
OYO’s journey in FY25 will likely become a case study in business transformation—showing how agile strategy, focus on core strengths, and financial discipline can lead a startup from losses to industry leadership.
In short, FY25 wasn’t just a good year for OYO. It was a year that redefined what Indian startups can achieve.
