OYO IPO
Last updated:
IPO Price Range: Not Announced Yet
Objectives of IPO
- Oravel Stays Limited plans to raise up to ₹6,650 crore through its IPO. The entire amount will come from a fresh issue, which means the company is issuing new shares and the money raised will go directly into the business. There is no Offer for Sale (OFS), where existing shareholders sell their shares. This means early investors and promoters, including founder Ritesh Agarwal, SoftBank (SVF India Holdings), Lightspeed, Peak XV Partners, and Airbnb, are not selling any stake or taking home any money from the IPO. Instead, every rupee raised will be used for the company's planned business needs.
- The biggest share of the IPO proceeds, ₹4,987.50 crore, will be used to repay existing debt. The company will invest this amount in its Singapore-based subsidiary, Oravel Stays Singapore Pte. Ltd., which has a major loan called Term Loan B (TLB), a long-term loan commonly used by companies for large acquisitions and expansion. This loan helped fund OYO's international growth, including the acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 hotel brands in North America, for an upfront cash payment of ₹4,274.07 crore ($503.60 million). Reducing this debt should lower future interest costs and leave the company with a stronger financial position.
- The final amount for this category will depend on the IPO price, but it cannot exceed 25% of the total issue size, or a maximum of ₹1,662.50 crore. The company plans to use these funds for its day-to-day business needs. This may include repaying other borrowings, paying employee salaries, investing in marketing and brand building, covering rent and insurance expenses, and maintaining a reserve for taxes or any unexpected business costs.
Financial Performance of OYO
Total revenue of the company dipped slightly to ₹5,541.59 crore in FY24 as the company temporarily closed some hotel storefronts to upgrade them into premium properties. Growth picked up again in FY25, with revenue rising to ₹6,325.89 crore, and it reached ₹7,166.33 crore by the end of December 2025, supported by strong growth in both India and overseas markets. The company also moved from a net loss of ₹1,286.52 crore in FY23 to a net profit of ₹229.58 crore in FY24, mainly because of a one-time gain on investments and the reversal of certain liabilities. Net profit increased further to ₹244.82 crore in FY25 and ₹748.34 crore during the nine months ended December 2025. However, much of this latest profit was driven by deferred tax credits rather than regular business operations.
Total assets declined to ₹6,443.47 crore in FY24 before rising sharply to ₹16,695.32 crore in FY25 and ₹18,944.25 crore by December 2025. While the company has not clearly explained the decline in FY24, the strong recovery was mainly driven by the addition of leased hotel assets, brand trademarks, and goodwill from global acquisitions. Borrowings also increased significantly, from ₹3,602.97 crore in FY24 to ₹7,144.05 crore in FY25, after the company took a new term loan to fund its international expansion and refinance older debt.
EBITDA margin, or operating profit before interest, taxes, depreciation, and amortisation, as a percentage of bookings, fell from 12.09% in FY24 to 5.86% in FY25 before improving to 9.27% during the first nine months of FY26. The decline in FY25 was mainly due to higher interest costs on leased properties and increased marketing expenses. However, if one-time items and exceptional gains are excluded, the company's core operating margins improved steadily throughout the period, supported by tighter cost control and better technology-driven efficiencies.
Strengths and Risks
Strengths
The company earned a gross profit equal to 18.44% of its booking value during the first nine months of FY26. This margin is around 1.5 to 4 times higher than many leading online travel platforms, showing that OYO has strong pricing power and keeps a larger share of the money from each booking.
OYO has built a network of 293,554 storefronts across more than 35 countries as of December 31, 2025. Having such a wide global presence reduces its dependence on the travel market of any one country.
The company generated ₹1,593.77 crore in net cash from its day-to-day operations during the nine months ended December 31, 2025. This is a significant jump from ₹321.25 crore in FY25, showing that the business is generating much stronger cash from its regular operations.
OYO has steadily expanded its international business. During the first nine months of FY26, the United States alone contributed ₹12,022.51 crore in gross booking value, accounting for 52.39% of its global bookings. This gives the company a more balanced business across different markets.
The company generated ₹6,940.97 crore in revenue from operations during the first nine months of FY26. That's already more than the ₹6,252.83 crore it earned in the whole of FY25, highlighting the strong momentum in its business.
Risks
As of December 31, 2025, the company had total borrowings of ₹7,484.88 crore. Such a large debt burden means it has to spend a significant amount on interest payments, leaving it with less financial flexibility to respond quickly to changing market conditions. However, this is expected to come down to ₹2497.4 crore after the IPO funding.
The company reported a net profit of ₹748.34 crore during the first nine months of FY26. However, a large part of this came from accounting tax credits worth ₹559.30 crore. Without these non-cash tax benefits, its underlying operating profit would have been much lower.
Around 83.77% of the company's operating revenue comes from markets outside India. Since it does not hedge (protect itself against) foreign currency fluctuations, changes in exchange rates could have a noticeable impact on its financial performance.
The company's lease liabilities increased to ₹2,783.58 crore as of December 31, 2025, compared with ₹241.16 crore in FY24. This sharp increase is mainly because it is expanding its leased and company-operated hotels, which also raises its fixed operating costs.
The company is involved in several legal and regulatory matters, including its long-running dispute with Zostel, which could require it to transfer up to 7% of its shareholding if the outcome goes against it. It also faces active claims amounting to ₹465.91 crore, which remain an overhang on the business.
As of December 31, 2025, the company had a working capital deficit of ₹382.16 crore. In simple words, its short-term liabilities are higher than its short-term assets, which could put pressure on liquidity if business demand weakens.
How to Apply for OYO IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on OYO IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of OYO
Company | Operating Revenue | EBIT (% of total income) | Profit | EPS (Earnings Per Share in ₹) | RoNW |
OYO | ₹6,252.8 Cr | 7.43% | ₹244.8 Cr | 0.17 | 5.18% |
₹1,737.5 Cr | 15.85% | ₹229.9 Cr | 21.48 | 19.24% | |
₹1,286.1 Cr | 38.59% | ₹243.1 Cr | 2.48 | 19.56% | |
₹8,334.5 Cr | 28.97% | ₹2,038.1 Cr | 27.75 | 17.16% | |
₹3,559.8 Cr | 24.56% | ₹637.6 Cr | 3.05 | 5.94% | |
₹8,805.0 Cr | 12.25% | ₹857.5 Cr | - | - | |
₹99,918.0 Cr | 23.00% | ₹23,832.0 Cr | - | - | |
₹213,651.0 Cr | 31.83% | ₹59,238.0 Cr | - | - |
OYO Shareholding Pattern
| Promoters | 66.76% | |
| Name | Role | Stakeholding |
| SVF India Holdings (SoftBank) | Promoter | 40.04% |
| RA Hospitality Holdings | Promoter | 20.12% |
| Ritesh Agarwal | Promoter | 6.59% |
| Promoter Group & Public | 33.24% | |
| Name | Role | Stakeholding |
| Patient Capital Investments Pte. Ltd. | Promoter Group | 3.81% |
| Dinesh Ramamurthi (Trustee of Oravel Employee Welfare Trust) | Public | 5.38% |
| Five Stars Capital S.C.A | Public | 2.77% |
| Lightspeed Venture Partners IX, Mauritius | Public | 1.74% |
| A1 Holdings Inc. | Public | 1.62% |
| Star Virtue Investment Limited | Public | 1.62% |
| Tanjung Buai Ventures | Public | 1.41% |
| AirBnB Inc. | Public | 1.22% |
| Peak XV Partners Investments IV | Public | 1.06% |
| Others | 12.62% |
About OYO
At its core, the company runs a large digital platform that connects independent property owners with travelers looking for comfortable and affordable places to stay. Instead of spending heavily to own or build hotels, it follows an asset-light model, which means the property owners bear the real estate costs while OYO focuses on technology, branding, and operations. However, it also selectively leases premium properties under its "company-serviced" model to gain greater control over day-to-day operations and service standards.
For travelers, the platform offers reliable hotel rooms and vacation homes through well-known brands such as OYO, Motel 6, and Belvilla. People choose these brands because they offer clean, consistent, and reasonably priced stays. For property owners who often find it difficult to attract guests online, OYO provides online visibility, marketing support, and a smart pricing system that automatically adjusts room rates to help maximize bookings.
The company mainly earns revenue by taking a share of each booking made through its platform, along with subscription and franchise fees. During the first nine months of FY26, it reported operating revenue of ₹6,940.97 crore. Today, it operates in more than 35 countries, with a network of 293,554 storefronts and over 26.43 million loyal members.
Going forward, the company is placing a strong focus on expanding its premium and company-serviced hotel model. Under this model, it leases higher-end properties and works with selected operators to manage them. At the same time, it is continuing to invest in cloud computing and AI (artificial intelligence) to make booking rooms and managing hotels faster and more efficient.
For more details, visit here: https://www.oyorooms.com
Know more about OYO
OYO Parent IPO: What's Changed Since Its Last Listing Attempt?
OYO parent Oravel Stays has filed its updated DRHP for a ₹6,650 crore IPO. Here's what retail investors should know about its financials, strategy, risks, and valuation.
