Travel technology company OYO has reported exceptional financial results for the third quarter of FY25, with net profits soaring sixfold to ₹166 crore, up from ₹25 crore in the same period last year. The strong performance reflects the company’s successful transition to profitable operations and growing demand in key markets.
OYO’s Q3 FY25 Revenue Surges 31%
The hospitality platform’s revenue saw a substantial 31% year-over-year increase, reaching ₹1,695 crore compared to ₹1,296 crore in Q3 FY24.
This growth marks a significant improvement from the flat topline growth experienced in the previous fiscal year, indicating the success of OYO’s renewed focus on revenue expansion.
The company’s adjusted EBITDA for the October-December quarter stood at ₹249 crore, showing a 22% increase from ₹205 crore in the corresponding period last year.
The gross booking value (GBV) also demonstrated strong momentum, rising 33% to reach ₹3,341 crore, compared to ₹2,510 crore in Q3 FY24.
“The company’s performance in Q3 FY25 demonstrates our strong execution capabilities and the resilience of our business model,” said an OYO spokesperson. “We’re particularly encouraged by the growth across our core markets and the success of our premium offerings.”
The impressive quarterly results contribute to a strong showing for the first nine months of FY25, with OYO reporting a cumulative profit after tax of ₹457 crore. This represents a remarkable turnaround from a loss of ₹111 crore during the same period in the previous year.
The company’s growth strategy has been multifaceted, focusing on both organic expansion and strategic acquisitions. OYO has been actively pursuing premiumization of its India portfolio, enhancing the quality of its properties and service offerings.
OYO Reports Strong Financials, Eyes IPO and Global Expansion
The company has also strengthened its global presence through strategic moves, including the acquisition of US-based G6 Hospitality and Paris-based rental home platform Checkmyguest. However, the current financial figures do not include G6 Hospitality’s numbers, as the acquisition was only completed in the third week of December.
The strong financial performance has not gone unnoticed by rating agencies. Moody’s has upgraded OYO’s rating from B3 to B2 with a stable outlook, projecting that the company’s EBITDA will reach $200 million in FY25-26, which will be its first full year of financial consolidation following recent acquisitions.
Looking ahead, OYO appears to be preparing for its third attempt at going public, with plans to file its draft red herring prospectus (DRHP) in the first quarter of the new financial year. This comes as the company continues to restructure its shareholding pattern.
The company’s performance has been particularly strong in its core markets of India and the United States while emerging markets in Southeast Asia and the Middle East have also contributed significantly to its growth trajectory.
The focus on premium properties and enhanced customer experience has helped OYO capture a larger share of the market and improve its average revenue per booking.
As the travel industry continues to recover and evolve, OYO’s strong financial results and strategic initiatives position it well for sustained growth.
The company’s ability to maintain profitability while expanding its global footprint suggests a mature business model that can potentially weather market fluctuations while capturing new opportunities in the hospitality sector.
