SoftBank-backed Oyo reported a profit after tax (PAT) of over Rs 200 crore in the first quarter of FY26, more than doubling from Rs 87 crore in Q1 FY25. Founder Ritesh Agarwal highlighted in an email to the company’s management and shareholders that the bottom line improvement was driven by strong revenue growth and disciplined cost management.
Revenue and Booking Surge
The company’s revenue jumped 47% year-on-year to Rs 2,019 crore from Rs 1,371 crore. Gross Booking Value (GBV) surged 144% to Rs 7,227 crore in Q1 FY26, compared to Rs 2,966 crore in Q1 FY25. Agarwal attributed this growth to hotel openings, premiumization, better room utilization, and double-digit same-store performance.
Full-Year FY25 Performance
For FY25, Oyo clocked a GBV of Rs 16,250 crore and revenue of Rs 6,252 crore. The company recorded a net profit of Rs 244 crore, despite one-time loan repayment costs. Agarwal noted that these repayments would yield a recurring annual benefit of around Rs 50 crore, already visible in the latest quarter’s results.
Strategic Moves Ahead
Oyo has proposed issuing bonus shares in a 1:1 ratio, which will double its authorized share capital to Rs 24,31,13,59,300. Additionally, it plans to increase its ESOP pool by 8.8 crore stock options, aligning growth with employee incentives. The company aims to continue scaling profitably by expanding premium hotel offerings, focusing on customer experience, and maintaining operational efficiency.
Industry Context
Agarwal compared Oyo’s results with IHCL, India’s leading hospitality company, which reported Q1 FY26 EBITDA of Rs 637 crore and PAT of Rs 296 crore. He emphasized that Oyo’s growth reflects the strong momentum in the Indian hospitality industry.
