OYO

### **The Phoenix Rising: OYO’s ₹623 Crore Profit and the Strategic Path to a $8 Billion IPO**

The narrative surrounding OYO has shifted from rapid, burn-heavy expansion to a disciplined, high-growth profitability story. As of August 2025, OYO has solidified its position as the **most profitable Indian startup in FY25**, reporting a staggering **Profit After Tax (PAT) of ₹623 crore**, representing a **172% year-on-year growth** [1-3].

For investors and industry watchers, this isn't just a recovery; it is a fundamental transformation of a tech-hospitality giant.

#### **The Financial Turnaround: By the Numbers**

OYO’s fiscal performance in FY25 signals a robust "turnaround" phase. Key highlights include:

* **Revenue & EBITDA:** The company recorded a total revenue of **₹6,463 crore**, with an **Adjusted EBITDA of ₹1,132 crore** (a 27% increase YoY) [3, 4].

* **Operational Excellence:** In Q4 FY25 alone, Gross Booking Value (GBV) surged by **126% to ₹6,379 crore**, while EBITDA for the quarter grew by 61% [3].

* **Earnings Per Share (EPS):** The EPS has climbed to **₹0.93**, up from ₹0.36 in the previous year, reflecting a 158% improvement [3].

This profitability is underpinned by a **tech-driven platform** that enhances digital demand and operational efficiency across its **2,00,000+ global storefronts** [1, 2].

#### **Global Footprint: Beyond the Indian Market**

While OYO remains a household name in India, its growth engine is increasingly international.

* **The US Market:** A pivotal driver of OYO's current scale is its expansion in the United States, which now accounts for approximately **24% of its revenue** [3]. The recent **acquisition of G6** is expected to accelerate this, with a revenue target of **₹2,000 crore** from this segment alone [4].

* **European Dominance:** OYO Vacation Homes has emerged as one of **Europe’s top holiday home providers**, maintaining a massive presence in Denmark, the Netherlands, Germany, and France [1, 2].

* **Premium Brand Growth:** The company is successfully pivoting toward the premium segment, recently adding six UK properties under its **SUNDAY brand** [2].

* **Corporate Traction:** Client acquisition is soaring, with over **3,500 corporate clients** in FY25—a 20% increase YoY—adding roughly 50 new corporate partners every month [2, 3].

#### **Latest News: The Road to the 2026 Listing**

The most anticipated update for the market is OYO’s IPO timeline. The company is currently "IPO-bound," with plans to file its **Draft Red Herring Prospectus (DRHP) in November 2025** [3].

**Key Market Insights:**

* **IPO Target:** OYO is eyeing a listing between **March and November 2026**, with a target IPO price of approximately **₹70 per share**, which would value the company at **$7–8 billion** [3].

* **Unlisted Market Sentiment:** Currently, OYO shares are trading in the unlisted market between **₹47 and ₹52 per share** [3].

* **Valuation Perspective:** While the valuation is considered "rich" at a forward P/E of ~75x at the IPO price, the strong growth in PAT and EBITDA provides a visible pipeline for justified pricing [5].

***Note from the Journalist:** Information regarding specific unlisted share price movements and exact IPO dates is based on the latest ORENA and Analah reports from August 2025. You should independently verify any market movements occurring after this date.*

#### **Investment Verdict: Tactical Entry**

Analysis suggests a **"Tactical Hold & Scale"** approach rather than aggressive buying. While the turnaround is impressive, the high P/E multiples suggest that investors should protect capital and "play the optionality" of the IPO rather than overexposing their portfolios [5, 6]. Current recommendations suggest an allocation of **2–5% of a portfolio** for those looking to ride the IPO wave [6].

**In Conclusion:**

OYO has successfully migrated from a tech-disruptor to a profitable global leader. With customer ratings improving from **3.7 to 4.3** and a clear path to a 2026 listing, Ritesh Agarwal’s vision of a global hospitality powerhouse is closer to reality than ever before [1, 4].

**Analogy for Understanding:**

Think of OYO as a **world-class marathon runner** who spent the first half of the race sprinting at an unsustainable pace. After a brief period of slowing down to focus on form and breathing (profitability), they have now found their "second wind." They are no longer just running fast; they are running smart, with enough stamina to reach the finish line (the IPO) ahead of the pack.

**Disclaimer:** *This blog post is for informational and educational purposes only and does not constitute financial advice. Investments in unlisted shares carry inherent risks, including the potential for total capital loss. Please consult a professional advisor before making investment decisions [7-9].*