OYO to File DRHP in November: Numbers, Valuation & What to Expect

Why Now?

1. Clean Balance Sheet: OYO prepaid Rs.1,620 crore of its Term Loan B (Nov 2023) and later refinanced $450m debt, easing interest costs.
2. Profitability Streak: Two consecutive years of profit give it a stronger story than before.
3. Premium Push: Plans to launch a premium hotel app and brand refresh to capture higher-yield customers.

Key Numbers

1. FY24: Revenue Rs.5,389 crore, PAT Rs.229–230 crore (first full-year profit).
2. FY25: Revenue Rs.6,463 crore (+20% YoY), PAT Rs.623 crore (+172% YoY), Adjusted EBITDA Rs.1,132 crore.
3. Network: ~18,100 properties (up from ~12,900 in FY23).

What Investors Will Watch

1. Unit Economics: Occupancy, RevPAR, and shift to premium hotels.
2. Debt & Cash Flows: Impact of refinancing and free cash flow sustainability.
3. Governance: Board independence and shareholder alignment.
4. Growth Consistency: Can FY26 deliver both revenue growth and profits?

Bottom Line

With profitability, growth, and reduced debt, OYO is better positioned for its IPO than in past attempts. The success of its November DRHP will hinge on how well it convinces investors that its $7–8B valuation is backed by sustainable growth and strong cash flows.