OYO Achieves Record Profitability, Becoming India's Most Profitable Startup

OYO has emerged as the most profitable Indian startup, reporting a profit after tax (PAT) of approximately $72 million for the fiscal year ending March 31, 2025, a significant leap from the previous year's $27 million. This achievement highlights the company's successful premiumization strategy and operational efficiencies across its global operations.

The company's adjusted EBITDA saw a 27% year-over-year growth to $132 million, marking its tenth consecutive quarter of EBITDA profitability. This financial health is further evidenced by a 158% increase in earnings per share (EPS), reaching $0.93, and a 20% growth in revenue to $754 million, driven by its premium offerings and the integration of G6 Hospitality.

OYO's strategic focus on premium accommodations, including the launch of over 30 Sunday Hotels in the past year, has paid off, with Gross Booking Value (GBV) soaring by 54% to $1.92 billion. The fourth quarter of FY25 was particularly strong, with GBV hitting $744 million, a 126% increase from the previous year, and revenue growing by 41% to $218 million.

The company's expansion is not just limited to India but spans across the UK, SEAME region, and notably the US, where it saw a 55% growth in storefronts. OYO's global footprint now includes approximately 22,700 hotels and 119,900 homes, showcasing its vast operational scale.

With Moody's upgrading OYO's rating in recognition of its improved profitability, the company is poised for further growth. Founder Ritesh Agarwal has set ambitious targets for FY26, aiming for an EBITDA of over $233 million and an EPS of $1.31, with the US operations expected to be a key growth driver.

OYO's financial performance not only sets a new standard for Indian startups but also positions it as a formidable player in the global hospitality industry, challenging established players with its innovative business model and aggressive expansion strategy.