OYO’s parent firm Prism reports net profit of Rs 994 Cr for FY26

IPO-bound Prism, the parent entity of OYO, on Thursday reported an over four-fold rise in net profit for the 2025-26 financial year to Rs 994 crore.

The hospitality firm’s consolidated revenue from operations increased 49.7% to Rs 9,358 crore and Ebitda (earnings before interest, taxes, depreciation and amortisation) more than doubled to Rs 2,594 crore in FY26.

PRISM posted a net profit of Rs 245 crore in FY25. However, the FY26 net profit also included a Rs 678 crore deferred-tax credit, the company's annual report showed.

The company paid interest of Rs 1,414 crore on its outstanding loan. It plans to deploy a major portion of its IPO proceeds towards reducing its debt burden, according to the Updated Draft Red Herring Prospectus (UDRHP) filed with Sebi in June.

Prism is seeking to raise up to Rs 6,650 crore through a fresh issue of equity shares.

In a letter to shareholders, Prism Chairman Ritesh Agarwal said, “Financial Year 2025-26 marked another year of progress in our long-term journey. Gross Booking Value grew 88.5% to Rs 30,683.23 crore. Consolidated revenue from operations increased 49.7% to Rs 9,357.98 crore, gross profit rose 82.5% to Rs 5,699.79 crore, Ebitda more than doubled to Rs 2,593.84 crore from Rs 1,083.5 crore, and profit after tax reached Rs 994.18 crore compared with Rs 244.82 crore in the previous year – marking the company's fourth consecutive year of positive Ebitda."

These outcomes, Agarwal said, were driven by a stronger business mix, operating leverage, disciplined capital allocation and continued integration of the company's international businesses.

"Approximately 67% of room nights used during the year came through non-commissionable channels, supported by the OYO app – now the eighth most downloaded hotel accommodation booking application globally – and our other direct channels," the Chairman said.

He shared that in its first full year with OYO, US-based G6 Hospitality contributed Rs 14,107.13 crore of Gross Booking Value and added 70 net storefronts, marking the strongest annual net additions in recent years.

"Acquisitions have been few and deliberate, and we intend to keep them that way – evaluated against demanding return thresholds and pursued only where our brands, technology and distribution can make an acquired business materially better. Strengthening the balance sheet remains a priority, so that the cash this business generates is directed towards growth and long-term value creation," Agarwal stressed.