SUMMARY
- OYO’s parent company has reported a net profit of Rs 158 crore in Q2 FY25.
- The company’s revenue saw a significant increase to Rs 1,578 crore in Q2 FY25.
- In Q2 FY25, EBITDA grew to Rs 266 crore, a 27.4% QoQ increase.
Traveltech giant OYO’s parent company, Oravel Stays Ltd, has reported a net profit of Rs 158 crore in Q2 FY25, up from a profit of Rs 132 crore in Q1 FY25 representing a 19.6% QoQ increase.
This growth in profit brings the total net profit for the first half of the fiscal year to Rs 291 crore indicating an improvement from the net loss of Rs 91 crore recorded in Q2 FY24.
This improvement in financial performance is attributed to OYO’s focus on offering premium services, including the launch of Company Serviced Hotels under Townhouse, Collection O hotels, Palette, and Sunday brands.
Following a similar strategy, the company’s revenue saw a significant increase to Rs 1,578 crore in the quarter under review, marking a 12% QoQ rise from Rs 1,413 crore in Q1 FY25.
In Q2 FY25, EBITDA grew to Rs 266 crore, a 27.4% increase from Rs 174 crore reported in the previous quarter.
The company saw a rise in Gross Booking Value to Rs 3,242 crore in Q2 FY25 from Rs 3,048 crore in the first quarter. This represents a 17% YoY growth from Rs 2,767 crore reported in Q2 FY24.
Based on the Q2 figures, the company is set to report eight consecutive quarters of positive Adjusted EBITDA. In August, the company announced its first profitable fiscal year for FY24, recording a profit after tax of Rs 229.57 crore.
Founded in 2012 by Agarwal, OYO is a hospitality service provider, offering easy-to-book and affordable stay options worldwide. The company has over 40 integrated products and solutions across more than 35 countries, including India, Europe, and Southeast Asia.
OYO in September announced its acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million (approximately Rs 4,382.72 crore) in a cash deal.
Following the recent acquisitions, it’s expected that the company will exceed Rs 2,000 crore in EBITDA for FY26.
This deal is seen as OYO’s expansion into the US market since its launch in the area in 2019. Additionally, the company is looking to strengthen its position in Europe, where it generates more revenue due to higher average transaction values.
OYO in August secured Rs 1,457 crore (around $175 million) in a down round led by Ritesh Agarwal’s Singapore-based company Patient Capital, along with J&A Partners and ASK Financial Holdings.
OYO is also in the process of preparing for its IPO after putting its IPO plans on hold twice. The company is planning to refile its DRHP with SEBI once the ongoing refinancing of its $660 Mn Term Loan B is complete.
