Travel-tech company Oravel Stays, the parent of Oyo, reported a net profit of Rs 158 crore in Q2FY25, reflecting a 20% increase over the Rs 132 crore profit recorded in Q1, founder and CEO Ritesh Agarwal announced during a townhall, sources said.
Oyo’s revenue in Q2 surged by 12% to Rs 1,578 crore, up from Rs 1,413 crore in Q1. The company had reported its first-ever profitable quarter during the same period last year, with a net profit of Rs 16 crore.
For H1FY25, Oyo’s net profit reached Rs 291 crore, a significant improvement from the Rs 91 crore net loss recorded in the same period the previous fiscal year. This growth was driven by the company’s premiumisation strategy, which included launching Company Serviced Hotels under brands like Townhouse, Collection O, Palette and Sunday.
Ebitda for Q2 grew 27% to Rs 266 crore, up from Rs 174 crore in the preceding quarter. Agarwal stated during the townhall that the company is targeting to surpass Rs 2,000 crore in Ebitda by FY26.
Oyo’s gross booking value (GBV) increased to Rs 3,243 crore in Q2, compared to Rs 3,048 crore in Q1 FY25, representing a 17% year-on-year growth.
Oyo recently announced the acquisition of G6 Hospitality, a US-based economy lodging franchisor and the parent company of Motel 6 and Studio 6 brands, from Blackstone for $525 million.
For FY24, the company had posted a net profit of Rs 229.5 crore against a net loss of Rs 1,286.5 crore in the preceding financial year, as it reigned in expenses to improve cash flows. On an adjusted basis, Ebitda grew by 215% to reach about Rs 877 crores in FY24, up from about Rs 277 crores in FY23.
From: financialexpress
Financial News
