SoftBank-backed OYO, operating under parent Oravel Stays Limited (now rebranded to PRISM), has delivered a standout performance in Q1 FY26. The numbers are impressive—but is this the turning point many have been waiting for? Let’s break down OYO's Q1 Results.
Profit After Tax (PAT): ~₹200 crore, more than double the ~₹87 crore in Q1 FY25.
Revenue: ₹2,019 crore, up ~47% YoY (vs ~₹1,371 crore in the same quarter last year).
Gross Booking Value (GBV): ~₹7,227 crore, up ~ 144% year-on-year.
Full Year FY25 numbers for context:
Revenue ~₹6,252 crore (≈16% growth over FY24)
Net profit (consolidated) ~₹244–245 crore, notwithstanding exceptional one-time costs like accelerated loan repayments.
From public statements and the disclosures:
Premiumisation & Better Room Utilisation
OYO claims that part of the revenue growth is due to shifting more inventory toward premium/luxury offerings, improving utilization of rooms in existing properties, and opening new hotels. This tends to improve margins per stay.
For hotels in operation over six months, occupancy has been consistently above 70%. That shows that the company is getting stable traffic, not just from new openings.
Better leverage on fixed costs, improved operating discipline, and investments in technology seem to be helping reduce overheads or improve margin metrics. Also, some benefit from loan repayment costs, which reduces the interest burden.
OYO is expanding its footprint globally—acquiring brands like G6 (Motel 6, Studio 6) for the U.S., growing its vacation homes portfolios (Belvilla etc.), and developing its premium brands and hospitality verticals beyond baseline budget hotels. That diversifies revenue sources.
The company is proposing a 1:1 bonus share issue (i.e. for each share held, one more share) and increasing its ESOP pool. These are signals aimed at maintaining employee morale and providing value to shareholders.
While the results are strong, there are reasons to temper optimism:
One-time and Exceptional Items
Some profits in past periods have been helped by tax or deferred tax gains and other one-off items. In other words, when you exclude those, the profitability picture becomes less rosy.
The domestic business (India) is seeing more sluggish revenue growth compared to its international operations. Also, acquisitions in low-margin geographies (or brands) could dilute margins.
Scaling globally is capital-intensive. Competition in both budget and premium hospitality is fierce, both from traditional hotel chains and other aggregator / tech-driven entrants. Maintaining service quality, occupancy, and cost control will be critical.
OYO is reportedly preparing a DRHP (Draft Red Herring Prospectus) for IPO in November. Public market investors will scrutinize consistency, growth trajectory, profitability, governance, etc. Any misalignments or surprises may affect valuation.
Yes, there are strong signs that OYO is staging a genuine comeback, not just in headline numbers but also in fundamentals. Doubling profit, high GBV growth, improving revenue and occupancy, along with moves to rebrand, expand premium inventory, and improve cost structure, all point toward a more mature, resilient OYO. However, it's not a full turnaround yet. The reliance on international growth, the need to maintain margins, and to show consistency over multiple quarters (not just one) remain important.
Profit margins (especially adjusted for one-offs) and whether they are improving
Performance of newly added premium / international properties
Domestic India business growth vs international to see stability
Operational metrics like RevPAR (Revenue per available room), occupancy trends, customer retention
How cost control fares (labour costs, input costs, real estate/leases etc.)
IPO filing, valuation, and investor response
OYO’s Q1 FY26 results make a strong case that the company is more than just recovering — it’s evolving. But whether this becomes a sustained comeback depends on execution, keeping cost discipline, balancing growth with quality, and delivering consistently beyond just one good quarter. If things fall into place, OYO under its new parent brand (PRISM) could well be writing a new chapter in hospitality tech, profitability, and global momentum.