OYO’s PAT Surges 6X To INR 166 Cr In Q3

Hospitality giant OYO’s profit after tax (PAT) jumped nearly 6X to INR 166 Cr in the third quarter ended December (Q3 FY25) from INR 25 Cr in the year ago period, sources told Inc42.

The company’s revenue also increased 31% to INR 1,695 Cr in the quarter under consideration from INR 1,296 Cr in the year ago period. 

OYO has declined to comment on Inc42’s queries pertaining to the development.

The company has achieved an adjusted EBITDA of INR 249 Cr in Q3 FY25 as per provisional numbers. This is a 22% increase from INR 205 Cr in Q3 FY24. 

“OYO was able to demonstrate its ability to run profitable operations, but the topline growth trajectory was a question mark. The renewed focus on revenue growth has borne results with the company showing a 31% increase in topline,” sources added. 

For nine months ended in 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. 

The adjusted EBITDA for the nine-month period stood at INR 690 Cr, marking a 15% growth from INR 600 Cr in the year ago period. 

OYO’s growth is majorly driven by strong performance in its core markets of India and the United States, while emerging markets in Southeast Asia and the Middle East also contributed significantly, the sources added. 

The company recently announced its plans to invest £50 Mn (INR 448.36 Cr) in the UK over the next three years to double down on its premium hotel portfolio in the UK. 

It is pertinent to note that OYO is shifting its strategy to focus on premium hotel offerings rather than just budget accommodations. This involves acquiring premium inventory through long-term leasehold and management contracts.