OYO IPO

Strengths · 8

• 01The platform had 293,554 storefronts in more than 35 countries as at 31 December 2025, up from 170,101 as at 31 March 2023.
• 02Revenue from operations was Rs 6,940.97 crore in the nine months to 31 December 2025, already above the full FY2025 figure of Rs 6,252.83 crore.
• 03EBITDA was Rs 2,127.22 crore in the nine months to 31 December 2025 against Rs 953.43 crore for the whole of FY2025.
• 04The company reported a profit of Rs 748.34 crore in the nine months to 31 December 2025, after Rs 244.82 crore in FY2025 and Rs 229.58 crore in Fiscal 2024.
• 05Cash generated from operating activities was Rs 1,593.77 crore in the nine months to 31 December 2025 against Rs 321.25 crore in all of FY2025.
• 06The net leverage ratio improved to 2.60 times at 31 December 2025 from 5.69 times at 31 March 2025, and the debt service ratio to 2.10 times from 0.24 times.
• 07Gross booking value in the United States and Canada rose to Rs 12,022.51 crore in the nine months to 31 December 2025 from Rs 4,712.83 crore in all of FY2025.
• 08The document states that revenue from no single customer exceeds 10% of revenue from operations, and that the company owns no manufacturing facilities.

Risks · 10

• 01Outside India brought 83.77% of revenue from operations in the nine months to 31 December 2025, so most of the business depends on markets other than the home one.
• 02Total borrowings were Rs 7,484.88 crore at 31 December 2025, above the net worth of Rs 6,146.62 crore, and up from Rs 3,602.97 crore at 31 March 2024.
• 03The entire identified object, Rs 4,987.50 crore, repays borrowings of the subsidiary Oravel Stays Singapore Pte. Ltd., so none of the named use of funds adds capacity or new business.
• 04The company reported a restated loss of Rs 1,286.52 crore in Fiscal 2023 and says it may incur losses again if it cannot manage expenses.
• 05FY2025 showed a loss of Rs 333.65 crore before exceptional items, share of joint venture results and tax, against a reported profit of Rs 244.82 crore, so the reported figure rests on items below that line.
• 06The document says an adverse outcome in the Zostel proceedings could mean the issuance or transfer of up to 7% of the shareholding, or payment of equivalent monetary value.
• 07100% of the share capital of promoter RA Hospitality Holdings (Cayman) is pledged to a lender, and enforcement could change the company's promoters.
• 08Litigation is heavy: 22 material civil litigations, 91 tax proceedings and 9 regulatory actions are pending against the subsidiaries with Rs 3,969.44 crore involved, and Rs 1,689.55 crore is involved in matters against the promoters.
• 09The company has to integrate G6 Hospitality, K&J Consulting (CheckMyGuest) and Key Flickers (MadeComfy), and says failure to do so could affect its business.
• 10General corporate purposes is the only other use of the net proceeds, capped at 25% of gross proceeds, and a pre-IPO placement of up to Rs 1,330.00 crore would be priced outside the book build.

Oravel Stays Limited is the company behind OYO. It runs a technology driven hospitality platform that connects Patrons, the owners, lessors and operators of storefronts, with Customers who book short stay accommodation, and it supplies dynamic pricing, revenue management, content management, customer support and supply monitoring. The platform brands are grouped as PRISM brands, and the company has applied for the PRISM trademark under class 43, which was still pending as on the date of the document. The business runs in three verticals: Hotels, under brands including Sunday, Townhouse, Palette, OYO, Motel 6 and Studio 6; Homes, the professionally managed vacation homes and short term rentals under Belvilla, DanCenter and Checkmyguest; and Listings, storefronts listed for a fixed subscription fee. Wedding venues under Weddingz, co-working under Workspaces, tours, events and food and beverage services sit alongside these.

Scale is global rather than Indian. As at 31 December 2025 there were 293,554 storefronts, made up of 24,303 hotels, 124,668 homes and 144,583 listings, in more than 35 countries, against 170,101 storefronts as at 31 March 2023. Europe held 269,251 of those storefronts, India and Nepal 14,937 and the United States and Canada 2,087. Outside India brought 83.77% of revenue from operations in the nine months to 31 December 2025, up from 74.70% in Fiscal 2023, with the United States alone at 27.07%. The company reports a single operating segment and says no single customer is more than 10% of revenue. It owns no manufacturing facilities and describes its model as asset light.

Gross booking value, the amount Customers pay for bookings, was Rs 22,946.25 crore in the nine months to 31 December 2025 against Rs 16,278.78 crore in all of FY2025. Revenue from operations was 30.25% of that booking value, down from 53.70% in Fiscal 2023, because more of the business now sits in commission and royalty rather than in the company selling room nights itself. In the nine months, sale of accommodation services brought Rs 3,811.05 crore and commission from bookings and royalty income Rs 2,214.87 crore. Gross profit was Rs 4,231.00 crore.

The financial record turned in Fiscal 2024. The company reported a restated loss of Rs 1,286.52 crore in Fiscal 2023, then a profit of Rs 229.58 crore in Fiscal 2024, Rs 244.82 crore in FY2025 and Rs 748.34 crore in the nine months to 31 December 2025. EBITDA was Rs 2,127.22 crore in the nine months against Rs 953.43 crore for the whole of FY2025. Net worth was Rs 6,146.62 crore at 31 December 2025. Total borrowings were Rs 7,484.88 crore, above net worth, after rising from Rs 3,602.97 crore at 31 March 2024, largely alongside the G6 Hospitality acquisition. The net leverage ratio was 2.60 times against 5.69 times a year earlier.

The issue is a fresh issue only of up to Rs 6,650.00 crore, with no offer for sale, so no existing shareholder is selling. Of this, Rs 4,987.50 crore is an investment in the subsidiary Oravel Stays Singapore Pte. Ltd. to repay or prepay that subsidiary's borrowings, and the rest goes to general corporate purposes. The company may raise up to Rs 1,330.00 crore in a pre-IPO placement, which would be reduced from the fresh issue. Promoters are Ritesh Agarwal, RA Hospitality Holdings (Cayman) and SVF India Holdings (Cayman) Limited.

The industry

The 1Lattice report in the document values the global hospitality market across key regions at Rs 117.8 trillion, or US$1,368.6 billion, in CY2025, and projects Rs 168.9 trillion, or US$1,962.1 billion, by CY2030, a CAGR of 7.5%. The United States led CY2025 at Rs 32.7 trillion and Europe followed at Rs 25.5 trillion. India's hospitality market was Rs 4.1 trillion, or US$47.8 billion, in CY2025 and is expected to grow at a CAGR of 12.4% to Rs 7.4 trillion by CY2030, among the fastest growing markets. The report also says 92% of India's hotel storefronts were unorganised in CY2025, against 77% in Europe and 35% in the United States, and that room revenue was 65% of the Indian hospitality market.

Customer concentration: The document says revenue from any single customer does not exceed 10% of total revenue from operations, so no top five customer concentration is disclosed.