OYO-Owned Innov8's Profit Plunges 97% To INR 1 Cr

SUMMARY

The company would have slipped into loss if not for a deferred tax gain of INR 4.3 Cr, posting a loss before tax of INR 3.2 Cr during the year

The decline in profit came despite Innov8’s operating revenue surging 117% to INR 114.5 Cr in FY25 from INR 52.7 Cr in the previous fiscal year

Innov8 said in its annual report that its EBITDA zoomed 76% YoY to INR 30 Cr and EBITDA margin stood at 24%

Managed workspaces provider Innov8, erstwhile OYO Workspaces India Pvt Ltd, saw its bottom line take a hit in FY25 on the back of surging expenses. The company’s profit after tax (PAT) for the year slumped 97% to INR 1.2 Cr from INR 37.7 Cr in FY24.

The company would have slipped into loss if not for a deferred tax gain of INR 4.3 Cr. It posted a loss before tax of INR 3.2 Cr during the year. It is pertinent to mention that Innov8 had a deferred tax gain of INR 27.1 Cr in FY24. It had posted a profit before tax of INR 10.6 Cr.

The decline in profit came despite Innov8’s operating revenue surging 117% to INR 114.5 Cr in FY25 from INR 52.7 Cr in the previous fiscal year.

Rental income contributed the highest INR 109 Cr to the top line, while sale of food and beverages stood at INR 16.4 Lakh. Including other income of INR 3.1 Cr, Innov8’s total income for FY25 stood at INR 117.5 Cr.

Innov8 said in its annual report that its EBITDA zoomed 76% YoY to INR 30 Cr and EBITDA margin stood at 24%, as per I-GAAP accounting standards. These numbers also included group company Guerilla Infra Solutions’ revenue of INR 9 Cr.

For FY26, the company projected its I-GAAP EBITDA to double to INR 60 Cr. “The trend in Q1 remains strong. Q1 FY26 witnessed a revenue of INR 37 Cr, a growth of 55% from Q1 FY25 revenue of INR 24 Cr. IND GAAP EBITDA of INR 7.5 Cr, a growth of 189% from Q1 FY25 IND GAAP EBITDA of INR 2.6 Cr,” the company claimed.

Founded in 2015 by Ritesh Malik, Innov8 offers premium coworking space across 42 centers with a total seating capacity of over 13K. It operates across nine cities – Delhi NCR, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, Hyderabad, and Indore.

In July, the company claimed to have 62 centres signed (50 live, 12 expected to go live in coming months).

Innov8 was acquired by OYO in an all-cash deal worth about INR 220 Cr ($31.84 Mn) in 2019. OYO CFO Rakesh Kumar, its head of legal affairs Anshuman Singh and SVP Pankhuri Sakhuja sit on the board of Innov8.

According to OYO’s FY25 annual report, it holds a 88.3% stake in Innov8. It is pertinent to mention that the hospitality major is currently preparing its public listing plans. It is targeting a valuation of $7 Bn to $8 Bn and is expected to file its DRHP in November 2025.

Meanwhile, Innov8 also turned into a public entity in December 2024, as per its annual report. The company converted its legal status from a private limited company to a public limited company. However, there is no clarity on whether Innov8 is looking at pursuing a separate public listing.

In recent times, a number of coworking space providers have gone public. While Awfis was the first to get listed, Smartworks, IndiQube and DevX followed suit in recent months.

Breaking Down Innov8’s Expenses

The company’s total expenses more than doubled to INR 121.6 Cr in FY25, an uptick of 104% from INR 59.6 Cr in the previous fiscal year.

Operating Expenses: The spending under the head grew 110% to INR 33.8 Cr from INR 16.1 Cr in FY24.

Employee Benefit Expenses: The company’s spending on employees zoomed 70% to INR 3.9 Cr during the year under review from INR 2.3 Cr in the previous fiscal year.

Depreciation & Amortisation: These expenses surged 108% to INR 42.4 Cr from INR 20.4 Cr in FY24.