OYO has reported a remarkable sixfold increase in profit, reaching ₹166 crore in Q3 FY25, compared to ₹25 crore in the same quarter last year. The hospitality giant also recorded a 31% revenue growth, climbing to ₹1,695 crore from ₹1,296 crore in Q3 FY24. Additionally, OYO's gross booking value (GBV) surged 33% to ₹3,341 crore.
The company attributes this growth to strategic realignments and a strong focus on revenue expansion. With an improved Moody's credit rating and a stable financial outlook, OYO appears well-positioned for sustained profitability and market expansion in the coming years.
During the last quarter of the year, OYO turned its first profit, posting an adjusted EBITDA of Rs 249 crores, which is a remarkable figure considering that last year, the value stood at only Rs 205 crores. The company's gross booking value (GBV) also increased by an additional 33%, reaching Rs 3,341 crores from Rs 2,510 crore in the third quarter of FY 2024. This information helps to gauge whether OYO is on the right path to achieving profits and fulfilling market needs.
The conclusion of a fundamental realignment exercise that OYO undertook explains its current revenue acceleration. According to insiders the company has already shown through successful operations that it can be profitable while concentrating on raising its topline. A shift towards concentrating more on generating revenue has resulted in quite an impressive 31% year-over-year revenue growth.
During the first nine months of the simply ended FY, not only did OYO reverse its losses to a profit of Rs 457 cr, but it also successfully blunted the impact of the pandemic by moving towards stabilization, as shown by a comparison of the year-ago period in last year (loss = Rs 111 cr). The comeback has been put down to OYO's dedication, discipline, and expansion of its market, which have demonstrated so far that in the last two years, its financial performance has been rising substantially.
In addition to its very successful quarterly results, OYO's financial stability has also been recognized by global rating agencies. Moody's has upgraded the company's credit rating from B3 to B2 with a stable outlook. The upgrade indicates that OYO's confidence in its financial strength improves with scale-up and earnings and healthy market positioning.
Moody's expects the USD 200 million (over Rs 1,600 crore) mark in EBITDA in FY25-26, which is the first full year of revenue from the recently purchased subsidiaries. This increases with OYO's Strategic geographical and acquisition diversification. Given that so many regions worldwide are now generating revenue for OYO, the company seems well-positioned to continue growing for several decades.
OYO is prepared to maintain its focus on expanding, increasing its operations, and making more premium offerings. As such, these changes are expected to improve consolidated performance. Although they may not have been very vocal about their interim financial reports, OYO's market positivity suggests potential boosts for the company.
A proactive hospitality sector professional, OYO is very well positioned to aggressively target the travel tech industry owing to its ability to adapt to challenges and capitalize on opportunities. Successfully, the initiatives taken by OYO to widen its portfolio and improve the delivery of services are set to yield results.