OYO Expects INR 1,100 Cr Net Profit In FY26: Ritesh Agarwal

SUMMARY

Agarwal expects an improvement in the top line due to its recent acquisition of US-based G6 Hospitality, the parent of Motel 6 and Studio 6

OYO expects G6 Hospitality to contribute an EBITDA of INR 630 Cr in the upcoming financial year

Agarwal's optimism about the financial health of the startup comes at a time when reports suggest that he is facing pressure from creditors to fast track OYO’s IPO

Amid the growing buzz around its much-awaited IPO, travel tech major OYO’s founder Ritesh Agarwal expects the startup’s net profit to touch INR 1,100 Cr in the financial year 2025-26 (FY26).

A PTI report, citing projections shared by the founder with the startup’s leadership team, said Agarwal expects an improvement in the top line due to its recent acquisition of US-based G6 Hospitality, the parent of Motel 6 and Studio 6.

OYO expects G6 Hospitality to contribute an EBITDA of INR 630 Cr in the upcoming financial year. “This contribution is anticipated to push OYO’s combined EBITDA to over INR 2,000 Cr in FY26,” the report cited a source as saying.

OYO declined to comment on the projections.

This isn’t the first time that the travel tech major has asserted a bullish outlook on its US acquisition. In September last year, company sources said that OYO was anticipating the G6 Hospitality acquisition to start showing quick returns.

“The reason behind this is the fact that both OYO and G6 are EBITDA positive and command large footprints in India and America, respectively. Thus, OYO’s EBITDA will get a boost because of the move,” sources told Inc42 then.

Last month, sources told Inc42 that OYO’s profit after tax (PAT) jumped nearly 6X to INR 166 Cr in the third quarter of FY25 from INR 25 Cr in the year-ago period. For nine months ended December 2024, OYO reported a PAT of INR 457 Cr against a loss of INR 111 Cr in the same period last year, suggest provisional numbers.

Earlier, the founder had predicted a PAT of INR 700 Cr for the ongoing fiscal year.

Agarwal’s optimism about the financial health of the startup comes at a time when reports suggest that he is facing pressure from creditors to clear a looming debt repayment, forcing the startup to fast track its listing process.

Earlier this week, a report by Bloomberg said that if OYO doesn’t list by October, its lenders, including Mizuho Financial Group, would pressure the founder to return the $383 Mn he owes from a massive loan package. They might grant him an extension until 2027, but only if the IPO happens this year, the report added.

The unicorn’s IPO plans have been in a limbo for the past few years. After filing its draft red herring prospectus (DRHP) for a $1.2 Bn IPO in 2021, the startup withdrew its DRHP in May last year.