Oyo Reports Strong Q3 FY25 Performance with Sixfold Profit Growth
Oyo, the travel tech company led by Ritesh Agarwal, has delivered a remarkable performance in the third quarter of fiscal year 2025. The company reported a net profit of Rs 166 crore, marking a sixfold increase compared to Rs 25 crore in the same period last year. This significant growth highlights Oyo’s successful expansion strategy and operational efficiency.
Revenue Growth and Market Expansion
Oyo’s revenue surged to Rs 1,695 crore in Q3 FY25, a 31% rise from Rs 1,296 crore in Q3 FY24. The company attributed this strong growth to robust sales in key markets such as India, the United States, Southeast Asia, and the Middle East. These regions have witnessed an increasing demand for budget-friendly and technology-driven hospitality solutions, which has played a crucial role in Oyo’s revenue boost.
Improved Profitability and EBITDA Growth
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to Rs 249 crore, reflecting a 22% rise from Rs 205 crore in the previous year. This improvement is a result of cost optimization efforts and an enhanced focus on high-margin properties. Furthermore, Oyo’s gross booking value (GBV) grew by 33%, reaching Rs 3,341 crore, demonstrating a higher volume of bookings across its properties.
Impact of G6 Hospitality Acquisition
The recent acquisition of G6 Hospitality, finalized in the third week of December, is expected to further strengthen Oyo’s foothold in the U.S. market. While the Q3 FY25 results do not include the financial impact of this acquisition, it is anticipated to contribute positively to Oyo’s revenue and profitability in the upcoming quarters.
Nine-Month Performance and Financial Turnaround
For the first nine months of FY25, Oyo reported a profit after tax (PAT) of Rs 457 crore, a significant turnaround from a net loss of Rs 111 crore in the same period last year. This turnaround underscores the company’s ability to scale operations efficiently while maintaining profitability.
Moody’s Credit Rating Upgrade
Global rating agency Moody’s has upgraded Oyo’s credit rating from B3 to B2 with a stable outlook. This upgrade reflects investor confidence in Oyo’s financial stability and long-term growth prospects. The improved credit rating is expected to enhance Oyo’s ability to secure funding at better terms, supporting its future expansion plans.
Future Outlook
Looking ahead, Oyo aims to capitalize on its growing market presence and technological advancements to further enhance customer experience. The integration of artificial intelligence and data analytics into its platform is expected to drive personalized services and improve occupancy rates. With a solid financial foundation and continued expansion into key global markets, Oyo is well-positioned for sustained growth in the travel and hospitality sector.
Conclusion
Oyo’s Q3 FY25 performance demonstrates its strong business model, operational efficiency, and strategic expansion. With a significant increase in profit, revenue growth, and an improved credit rating, the company is poised for continued success. As Oyo expands its presence and strengthens its financial position, it remains a key player in the evolving travel and hospitality industry.
