OYO estimates Rs 1,100 cr PAT, Rs 2K cr Ebitda for FY26: Ritesh Agarwal

Travel tech unicorn OYO estimates its profit after tax to touch Rs 1,100 crore in the next financial year 2025-26, according to projections shared by Founder Ritesh Agarwal with the company's leadership on Wednesday, sources said.

The company expects Ebitda of Rs 2,000 crore for the same period, on the back of a strong top-line growth, buoyed by the recent Motel 6 acquisition.

Ebitda (earnings before interest, taxes, depreciation, and amortization) is a financial metric that measures a company's profitability and cash flow.

Motel 6 is projected to contribute an Ebitda of over Rs 630 crore in the coming financial year, which will be the first full year of its integration, according to sources.

"This contribution is anticipated to push OYO's combined Ebitda to over Rs 2,000 crore in FY26," said a person aware of the financial projections.

OYO recorded a Profit After Tax (PAT) of Rs 166 crore in the third quarter ended December, up nearly six times from Rs 25 crore in the year-ago period, PTI had reported earlier.

For the first nine months of FY25, OYO reported a PAT of Rs 457 crore ($55 million), compared to a loss of Rs 111 crore ($13 million) in the same period of the previous financial year.

The company's strategic initiatives, including India premiumization efforts, the acquisitions of G6 Hospitality and CMG, successful equity raise, and recent credit ratings upgrade, have further strengthened its market position, sources said.

Global Rating agency Moody's has upgraded OYO's rating to B2 from B3, and maintained the stable outlook.