OYO Becomes the Most Profitable Indian Startup with $72 Million Profit

June 25, 2025 at 08:30 AM EDT

--News Direct--

OYO Founder Ritesh Agarwal shared in an employee town hall that the company has now become the most profitable Indian startup. The company reported profit after tax (PAT) of ~$72 million in its financial results for the fiscal year ended March 31, 2025, a 172% increase from ~$27 million in FY24.

According to documents accessed by PTI, as per its unaudited financials, the company achieved an adjusted EBITDA of ~$132 million in FY25, compared to ~$104 million in the previous fiscal year, marking a robust 27% year-over-year growth and its 10th consecutive quarter of EBITDA profitability.

Consequently, OYO's earnings per share (EPS) reached $0.93 for FY25, up from $0.36 in FY24, reflecting a 158% increase as the company continues to enhance shareholder value.

The platform reported a 54% increase in Gross Booking Value (GBV) to $1.92 billion and its revenue grew to ~$754 million, a 20% increase year-over-year, fueled by the company's premium offerings through its Company-Serviced Portfolio (including the mid-segment Townhouse Hotels and Softbank- and Oravel-promoted Sunday Hotels) across India, UK, and the SEAME region, as well as the successful integration of G6 Hospitality.

The company has strategically expanded its premium offerings with the launch of over 30 Sunday Hotels in the last 12 months across various regions, including India, Saudi Arabia, UAE, and Southeast Asia. In the SEAME region alone, company-serviced property additions grew from 7 in Q4 FY24 to 256 in Q4 FY25.

The fourth quarter of FY25 proved to be OYO's strongest, with GBV reaching ~$744 million, a 126% growth compared to the same period last year, driven by its growing hotels business across India, USA, and SEAME and the acquisition of G6 Hospitality in Q3 FY25. Revenue for Q4 stood at ~$218 million, up 41% year-over-year, while adjusted EBITDA increased by 61% to ~$51 million compared to Q4 FY24.

The quarter saw significant expansion with the company's hotel storefronts increasing by 25%, buoyed by the addition of G6 hotels in its portfolio, and the homes segment growing by 42% year-over-year. Hotel GBV per storefront per month surged by 161% to ~$8,940, reflecting the success of OYO's premiumization efforts and strategic acquisitions.

OYO's global presence now includes approximately 22,700 hotels and 119,900 homes, along with 91,300 listings across its platform. The company significantly strengthened its position in developed markets, particularly in the US, where it experienced 55% growth in storefronts and 45% growth in GBV during FY25.

International rating agencies have recognized OYO's improved profitability and strengthened credit metrics, with Moody's upgrading the company's rating, citing OYO's improved profitability over recent quarters.

For the current financial year, FY26, Ritesh Agarwal has earlier shared a target of reaching over ~$233 million in EBITDA and $1.31 EPS, by growing its current annualized EBITDA run-rate of ~$198 million. The company expects its US operations to be a significant driver, with projected consolidated GBV growth of 3.4x in FY26 compared to FY25.

In FY 2025, OYO demonstrated the highest PAT growth compared to leading hospitality players such as IHCL, Lemon Tree, Ixigo, and Royal Orchid. OYO’s revenue outperformed Lemon Tree, Ixigo, and Royal Orchid, though it trailed IHCL.

Note: Financial figures in USD are converted using the exchange rate of 1 USD = ~85.7 INR as of June 9, 2025.