Oravel Stays Ltd, which operates OYO Rooms, reported a sharp surge in first-quarter profit and revenue, buoyed by robust hotel demand, premium brand expansion, and improved operating discipline. The board will also consider a 1:1 bonus share issue at its annual meeting later this month.
The company recorded a profit after tax of more than Rs 200 crore in Q1 FY26, more than double the Rs 87 crore posted a year earlier, according to an internal email founder Ritesh Agarwal sent to employees. Revenue climbed 47% year-on-year to Rs 2,019 crore, while gross booking value jumped 144% to about Rs 7,227 crore.
Agarwal attributed the performance to “ongoing hotel openings, double-digit same-store growth, premiumisation, and improved room utilisation.” Occupancy at company-serviced hotels consistently exceeded 70% for locations operating for more than six months, he said.
For the year ended March 2025, OYO reported revenue of Rs 6,252 crore and net profit of about Rs 244 crore, dampened by accelerated loan repayments. The company said those repayments will provide a recurring annual benefit of about Rs 50 crore to profit, already evident in the strong Q1.
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The improved financials now give the SoftBank-backed startup two consecutive years of post-tax profit—an important milestone for the once loss-making company that has been working to restore investor confidence. Agarwal said the results were particularly meaningful given OYO’s “relatively flat topline in FY24.”
OYO compared its performance with Indian Hotels Co Ltd, which posted Q1 FY26 EBITDA of Rs 637 crore and net profit of Rs 296 crore, underscoring the sector’s broader recovery and investor optimism in India’s hospitality industry.
Looking ahead, OYO is betting on the rapid expansion of its Sunday Hotels brand and new properties in the US to drive future growth. “We will continue to scale profitably by enhancing customer experience, expanding premium offerings, and maintaining operational discipline,” Agarwal told employees.
Separately, OYO said its board will consider a 1:1 bonus share issue at its 14th Annual General Meeting on September 26, with fully paid-up equity shares of face value Re 1 each to be allotted to eligible shareholders as of September 30.
Edited by Kanishk Singh
