Oyo’s parent PRISM has reported a net profit of ₹748 crore for nine months ending December 2025. The figure is largely supported by a deferred tax credit of ₹559 crore, raising questions about the sustainability of earnings. The company has filed for a ₹6,650 crore initial public offering.
Revenue touched ₹6,941 crore in the period, surpassing the previous year’s ₹6,259 crore. Operating performance showed improvement with EBITDA rising to ₹2,127 crore compared with ₹953 crore in FY25. Operating cash flow also strengthened to ₹1,594 crore from ₹321 crore a year earlier.
The IPO will be entirely a fresh issue with no offer for sale. Nearly three fourths of the proceeds, about ₹4,987 crore, will be used to repay debt. The company may also raise ₹1,330 crore through a pre‑IPO placement, which could reduce the issue size. Market valuation is expected between seven and eight billion dollars.
Investors such as SoftBank, Microsoft, Airbnb, Peak XV, Lightspeed, Khazanah, Greenoaks Capital and founder Ritesh Agarwal remain on board. Oyo operates 43 brands across more than 35 countries with over 24,000 hotels and 124,000 homes listed. The company has served more than 119 million customers.
Analysts caution that reliance on deferred tax credits and rising costs could affect future profitability.
