OYO becomes most profitable Indian startup in FY25 with Rs 623 crore profit, says Ritesh Agarwal

Ritesh Agarwal-led hospitality giant OYO has emerged as India's most profitable startup in FY25, posting a record Rs 623 crore in net profit—a 172% increase from the previous year, according to unaudited financial data reviewed by PTI.

The development was shared by founder and CEO Ritesh Agarwal during a town hall with employees on Thursday, marking a milestone moment for the SoftBank-backed company as it prepares for a delayed but still-anticipated IPO.

Rise in revenue

The company's revenue climbed 20% year-on-year to Rs 6,463 crore, supported by a 54% surge in Gross Booking Value (GBV), which stood at Rs 16,436 crore for the full fiscal year. Growth was fueled by OYO's expanding premium offerings, particularly through its company-serviced Townhouse and Sunday hotel portfolios across India, the UK, Southeast Asia, and the Middle East, as well as the integration of its US acquisition, G6 Hospitality.

OYO's adjusted EBITDA reached Rs 1,132 crore in FY25, up 27% from Rs 889 crore the previous year. This marked the company's tenth consecutive quarter of EBITDA profitability.

Notably, the fourth quarter alone accounted for Rs 1,872 crore in revenue—up 41% year-over-year—and Rs 442 crore in EBITDA, a 61% rise, underscoring the company's improved operational efficiency.

Market presence

The company added over 30 Sunday hotels in the last year, expanding its premium inventory in key regions including India, Saudi Arabia, UAE, and Southeast Asia.

OYO's global footprint now includes 22,700 hotels, 1.2 lakh homes, and more than 91,000 listings, with the number of managed properties rising from just 7 in Q4FY24 to 256 in Q4FY25. The company also reported earnings per share (EPS) of Rs 0.93, up from Rs 0.36 a year earlier—a 158% increase.

IPO outlook

While OYO had initially aimed to go public by October 2025 in what would be its third attempt at listing, recent reports suggest the IPO may be deferred to early 2026.

SoftBank, the company’s largest shareholder with over 30% stake, is understood to have expressed concerns over the company's financial readiness and is urging the hospitality firm to wait for a more robust earnings profile before hitting the bourses.

The company's original IPO plan, filed in 2021, sought to raise Rs 8,430 crore (about $1 billion), but was withdrawn due to adverse market conditions. A scaled-down version filed confidentially in 2023, targeting $400–600 million, was also pulled ahead of a $450 million bond issuance. Despite these delays, Agarwal recently indicated the company is on track to achieve Rs 1,100 crore in net profit for FY26.