OYO Net Profit Surges to ₹166 Crore in Q3, EBITDA at ₹249 Crore: A Strong Comeback
Introduction
OYO: The travel-tech giant, has reported a significant jump in its net profit for the third quarter (Q3) of the financial year 2025. According to sources, the company recorded a profit after tax (PAT) of ₹166 crore, marking a nearly six-fold increase from ₹25 crore in the corresponding period of the previous year. This impressive performance is a testament to OYO’s strategic initiatives and improved operational efficiencies.
The company also saw a notable surge in revenue, with its topline reaching ₹1,695 crore, up 31% from ₹1,296 crore in Q3 FY24. The turnaround in revenue growth signals a strong revival for the company, which had experienced flat growth in the previous fiscal year.
Financial Performance Overview
It’s financial health has significantly improved in Q3 FY25, driven by its strong presence in key markets such as India and the US. The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹249 crore, reflecting a 22% growth from ₹205 crore in the year-ago period.
The company’s gross booking value (GBV) also surged to ₹3,341 crore, representing a 33% rise from ₹2,510 crore in Q3 FY24. This indicates increasing customer engagement and a strong demand for OYO’s services.
Key Financial Metrics
| Financial Parameter | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Net Profit (PAT) | ₹166 crore | ₹25 crore | ~6x Increase |
| Revenue | ₹1,695 crore | ₹1,296 crore | 31% |
| Adjusted EBITDA | ₹249 crore | ₹205 crore | 22% |
| Gross Booking Value (GBV) | ₹3,341 crore | ₹2,510 crore | 33% |
For the first nine months of FY25, The company reported a cumulative PAT of ₹457 crore, compared to a loss of ₹111 crore during the same period last year. This highlights the company’s successful turnaround strategy and efficient cost management.
Strategic Growth Drivers
1. Strong Performance in Core Markets
It’s revenue boost can be attributed to its strong presence in key markets, primarily India and the US. Additionally, the company has expanded its footprint in Southeast Asia and the Middle East, further driving its growth.
2. Premiumisation of the India Portfolio
A major contributing factor to company’s success has been its premiumisation strategy in India. By enhancing its offerings in the mid-to-premium hotel segment, OYO has been able to attract a more affluent customer base, leading to higher revenue per room.
3. Strategic Acquisitions
It has aggressively expanded its global presence through acquisitions. Notably, the company acquired G6 Hospitality, a US-based hotel chain, and Checkmyguest, a Paris-based rental home company. These acquisitions are expected to strengthen OYO’s position in the hospitality industry.
4. Focus on Profitability and Operational Efficiency
OYO’s ability to turn a profit has always been a subject of debate in the industry. However, the recent financial results prove that the company is not just growing its revenue but also optimizing its operational efficiency to ensure profitability.
Moody’s Upgrade and Future Outlook
OYO’s strong financial performance has not gone unnoticed. Global rating agency Moody’s recently upgraded OYO’s rating from B3 to B2, citing improved financials and stable operational metrics. The agency also estimates that OYO’s EBITDA will reach USD 200 million in FY25-26, marking its first full year of consolidated earnings from its newly acquired businesses.
A source close to the company stated,
“OYO has successfully demonstrated its ability to run profitable operations, but its revenue growth trajectory was a concern. However, with a 31% increase in topline, the company has proven that it can grow while maintaining profitability.”
Challenges and the Road Ahead
While OYO has made impressive strides in its financial performance, challenges remain. The travel and hospitality industry is highly competitive, and factors like economic downturns, fluctuating travel demand, and regulatory changes could impact its growth trajectory.
However, the company’s strategic focus on premiumisation, market expansion, and cost control puts it in a strong position to sustain its profitability. If it continues on this path, OYO could further solidify its position as a leader in the global travel-tech industry.
Conclusion
OYO’s Q3 FY25 results have been nothing short of remarkable. With a six-fold jump in net profit, strong revenue growth, and increased operational efficiency, the company has proven its ability to scale while remaining profitable. As it continues expanding in key markets and integrating its acquisitions, OYO is well-positioned for sustained success in the coming years.
With Moody’s positive rating upgrade and strong financial backing, OYO is poised to achieve even greater milestones in FY26 and beyond.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.