IPO-Bound OYO Parent Prism Reports Four-Fold Rise in FY26 Net Profit to Rs 994 Cr

New Delhi: 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 per cent 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 per cent to Rs 30,683.23 crore. Consolidated revenue from operations increased 49.7 per cent to Rs 9,357.98 crore, gross profit rose 82.5 per cent 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 per cent 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.

The company’s Gross Booking Value (GBV) increased 88.5 per cent to Rs 30,683 crore during the year, compared with Rs 16,279 crore in FY25. Gross profit rose 82.5 per cent to Rs 5,700 crore.

The improvement came as the company benefited from higher business volumes, a stronger contribution from premium and company-serviced Hotels, operating leverage across markets and the full-year contribution of G6 Hospitality.

North America was the biggest contributor to the increase in group scale during FY26, with G6 Hospitality making its first full-year contribution following its acquisition in December 2024. G6 generated GBV of Rs 14,107 crore during FY26, compared with Rs 3,529 crore in FY25.

Prism said it completed the integration of G6’s technology stack into its unified platform within a year, replacing fragmented legacy systems with a common technology backbone. It also deployed AI-led pricing and service tools at the individual-property level and centralised owner engagement from India.

“We are now building the GM Agent – an autonomous layer that runs a property’s daily operations end to end, from reconciliation and vendor renewals to occupancy calls and review action plans. This is the shift from artificial intelligence that assists hotel operations to artificial intelligence that runs them, freeing our teams to spend their time with guests rather than with systems,” Agarwal added.

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