IPO-bound Prism, the parent entity of OYO, delivered exceptional financial results for FY2025-26, with net profit surging over four-fold to ₹994 crore compared to ₹245 crore in the previous year. According to the company's annual report, consolidated revenue from operations increased 49.7% to ₹9,358 crore, while EBITDA more than doubled to ₹2,594 crore from ₹1,083.5 crore in FY25. The FY26 net profit also included a ₹678 crore deferred-tax credit, as reported by PTI. In his letter to shareholders, Chairman Ritesh Agarwal emphasized that this marks the company's fourth consecutive year of positive EBITDA, driven by stronger business mix, operating leverage, and continued integration of international businesses. The company, which started out as a budget hotel aggregator in India, now derives over 80% of its revenue from global operations, supported by its extensive international expansion in recent years.
The hospitality firm demonstrated robust operational growth with Gross Booking Value increasing 88.5% to ₹30,683 crore during the year, compared with ₹16,279 crore in FY25. As reported by PTI, gross profit rose 82.5% to ₹5,700 crore, while approximately 67% of room nights were generated through non-commissionable channels supported by the OYO app, now the eighth most downloaded hotel accommodation booking application globally. The improvement came as the company benefited from higher business volumes, a stronger contribution from premium and company-serviced hotels, operating leverage across markets, and the full-year contribution of G6 Hospitality. The company paid interest of ₹1,414 crore on its outstanding loan during the year. According to the Updated Draft Red Herring Prospectus filed with SEBI in June, the company plans to deploy a major portion of its IPO proceeds towards reducing its debt burden.
US-based G6 Hospitality made its first full-year contribution following its acquisition in December 2024, generating ₹14,107 crore of Gross Booking Value during FY26 compared with ₹3,529 crore in FY25. According to PTI, G6 added 70 net storefronts during the year, marking the strongest annual net additions in recent years. The company completed the integration of G6's technology stack within a year and deployed AI-led pricing tools at the individual-property level. As reported by HDFC Securities, Prism also deployed AI-led pricing and service tools at the individual-property level and centralised owner engagement from India. The company is now building the GM Agent - an autonomous layer that runs a property's daily operations end to end, from reconciliation and vendor renewals to occupancy calls and review action plans. North America emerged as the biggest contributor to the increase in the group's scale during FY26.
Prism is seeking to raise up to ₹6,650 crore through a fresh issue of equity shares and plans to deploy a major portion of its IPO proceeds towards reducing its debt burden. As reported by PTI, the company has filed updated draft papers with SEBI in June to raise up to ₹6,650 crore through a fresh issue, along with a possible pre-IPO placement of up to ₹1,330 crore, which would be adjusted against the final issue size. The company has proposed to utilise ₹4,987.5 crore from the IPO proceeds towards the repayment or prepayment of borrowings. The proposed IPO is entirely a fresh issue, with existing shareholders, including SoftBank, Microsoft, Airbnb, Khazanah, Peak XV, Lightspeed and others, not selling shares through the offer. Chairman Ritesh Agarwal emphasized that strengthening the balance sheet remains a priority, with the company maintaining a disciplined approach to acquisitions evaluated against demanding return thresholds.
