OYO estimates ₹1,100 crore net profit for FY26, says founder Ritesh Agarwal; EBITDA expected to hit ₹2,000 crore

OYO estimates its net profit to hit ₹1,100 crore in the next financial year (2025-26), as per projections shared by founder Ritesh Agarwal with the travel company’s leadership, a PTI report said citing sources.

The travel tech unicorn OYO expects earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹2,000 crore for FY26 (2025-26) on the back of strong revenue growth driven by the recent acquisition of Motel 6.

Motel 6, an American chain of motels, is projected to contribute more than ₹630 crore to the company’s EBITDA in the same period, which will be the first full year of its integration, the report added.

"This contribution is anticipated to push OYO's combined EBITDA to over ₹2,000 crore in FY26," a person aware of the financial projections was quoted as saying.

OYO Q3 FY25 results

OYO, in the third quarter of the current fiscal year (FY25), posted a jump of nearly six times in its net profit to ₹166 crore from ₹25 crore reported in the year-ago period.

The company reported a net profit of ₹457 crore ($55 million) for the first nine months of FY25 as against a net loss of ₹111 crore ($13 million) posted in the same period of FY24.

OYO’s strategic initiatives like the premiumisation efforts (a growth strategy where consumers are persuaded to pay more for a particular product or service) in India, the acquisitions of G6 Hospitality and CMG, a successful equity raise and positive credit ratings, have enhanced the company’s market position, PTI reported citing sources. Global rating agency Moody’s recently upgraded OYO’s rating to B2 from B3, maintaining a stable outlook.

OYO IPO

“Creditors, including Mizuho Financial Group Inc., insist that founder Ritesh Agarwal pay off the dues for $383 million he borrowed—part of a multibillion-dollar loan package—if the startup doesn’t have an IPO by October, people familiar with the matter said,” the ET report said.