Reviewed by BuyUnlistedShares Research Desk.
OYO's parent company has closed FY26 with its strongest financial year yet. Consolidated profit after tax came in at ₹994.18 crore, more than four times higher than the ₹244.82 crore reported in FY25. Revenue crossed the ₹9,000 crore mark for the first time, and operating profitability improved sharply across the board. Here is a clear, numbers-first breakdown of what drove this jump and what to keep in mind before reading too much into the headline figure.
The Headline Numbers at a Glance
• Profit after tax (PAT): ₹994.18 crore in FY26, up from ₹244.82 crore in FY25 — a jump of more than 4x.
• Revenue from operations: ₹9,357.98 crore, up 49.7% year-on-year.
• EBITDA: ₹2,593.84 crore, more than double the previous year's figure.
• Gross Booking Value (GBV): ₹30,683 crore, up 88.5% from ₹16,279 crore in FY25.
• Gross profit: ₹5,700 crore, up 82.5% year-on-year.
Where the Profit Actually Came From
The jump in profit is the result of a few things happening together: much stronger booking volumes, a large acquisition finally showing up in the numbers, tighter cost control relative to revenue, and a one-time accounting benefit that boosted the bottom line further.
1. A Big Boost from the G6 Hospitality Acquisition
A significant part of the growth came from a large hotel-brand acquisition completed in December of the prior year. This business alone generated ₹14,107 crore in gross booking value during FY26, compared to just ₹3,529 crore in FY25 — the first full year this acquisition was reflected in the numbers. Integration of its technology systems, pricing tools, and owner engagement processes was completed within about a year, which helped this segment scale quickly and contribute meaningfully to both revenue and margins.
2. Core Hotel and Home Businesses Also Grew
• Hotel business (excluding the new acquisition): GBV grew 36.5% to ₹10,939 crore.
• Home rental business: GBV grew 19.4% to ₹5,447 crore.
This shows the growth wasn't dependent on the acquisition alone — the existing hotel and vacation-rental businesses also expanded at a healthy pace.
3. More Bookings Are Coming Directly
Around 67% of room nights in FY26 were booked through direct channels rather than third-party platforms. A mobile app focused on premium bookings and repeat customers was also launched in September 2025 to push this share higher. Direct bookings typically carry lower acquisition costs, which supports margins as volumes scale.
4. Operating Leverage Improved Margins
EBITDA more than doubling while revenue grew at a slower 49.7% shows that costs did not rise in step with business volume. As booking numbers scaled up, particularly through the newly integrated acquisition and higher direct-channel bookings, a larger share of incremental revenue converted into operating profit.
5. A Deferred Tax Credit Added to the Bottom Line
It's important to note that the FY26 profit figure includes a ₹678 crore deferred tax credit — a non-cash accounting benefit rather than income from operations. This means the reported PAT overstates the improvement in the core, cash-generating business to some extent. Even after accounting for this, however, the sharp rise in EBITDA and gross profit suggests the underlying operating performance genuinely improved, not just the accounting outcome.
Why This Matters Right Now
These results have been published as the company works toward a public listing. It has filed an updated draft red herring prospectus with market regulators for a fresh issue of shares worth up to ₹6,650 crore, with a large share of the proceeds earmarked for reducing existing debt rather than funding new expansion. The FY26 numbers form a key part of the financial track record investors and analysts will examine as this listing process moves forward.
Frequently Asked Questions
1. How much profit did OYO's parent company report in FY26?
It reported a consolidated profit after tax of ₹994.18 crore for FY26, compared to ₹244.82 crore in FY25.
2. How much did revenue grow in FY26?
Revenue from operations rose 49.7% year-on-year to ₹9,357.98 crore.
3. What was the biggest driver of this profit jump?
The full-year contribution of a hotel-brand acquisition completed in December of the previous year was the single largest driver, alongside strong growth in the existing hotel and home-rental businesses.
4. Did the entire profit come from business operations?
No. The reported profit includes a ₹678 crore deferred tax credit, which is a non-cash accounting benefit rather than operating income.
5. How much did EBITDA grow?
EBITDA more than doubled year-on-year to ₹2,593.84 crore.
6. What is Gross Booking Value (GBV), and how much did it grow?
GBV is the total value of all bookings made on the platform before deducting commissions and costs. It grew 88.5% to ₹30,683 crore in FY26 from ₹16,279 crore in FY25.
7. How did the core hotel business perform, excluding the new acquisition?
The existing hotel business grew its GBV by 36.5% to ₹10,939 crore, showing organic growth independent of the acquisition.
8. How did the home rental business perform?
The home rental business grew its GBV by 19.4% to ₹5,447 crore in FY26.
9. What share of bookings came through direct channels?
About 67% of room nights in FY26 were booked through direct channels rather than third-party platforms.
10. Is the company planning to go public?
Yes. It has filed an updated draft red herring prospectus with market regulators for a fresh share issue of up to ₹6,650 crore, with most proceeds earmarked for debt repayment.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.