OYO Parent Prism Reports 4x Profit Growth in FY26

Prism, the parent company of OYO, reported a sharp improvement in its financial performance for FY26, with revenue, EBITDA and Gross Booking Value recording strong growth. The company is now preparing for a proposed ₹6,650 crore IPO, with a significant portion of the proceeds earmarked for debt reduction.

Prism, the parent entity of OYO, reported a more than four-fold increase in consolidated profit after tax (PAT) to ₹994 crore in FY26, compared with ₹245 crore in FY25. However, the reported profit includes a ₹678 crore deferred-tax credit, making the underlying profitability picture more nuanced.

The company also delivered strong operating growth during the year. Revenue from operations rose 49.7% YoY to ₹9,358 crore, while EBITDA more than doubled to ₹2,594 crore, compared with ₹1,084 crore in FY25. Prism also recorded its fourth consecutive year of positive EBITDA.

Strong Growth in Gross Booking Value

One of the key highlights of FY26 was the company's sharp increase in Gross Booking Value (GBV).

Prism's GBV increased 88.5% to ₹30,683 crore, compared with ₹16,279 crore in FY25. Gross profit also increased 82.5% to approximately ₹5,700 crore.

The company attributed the improvement to higher business volumes, a stronger business mix, increased contribution from premium and company-serviced hotels, operating leverage and the full-year contribution from its international operations.

G6 Hospitality Becomes a Major Growth Driver

North America emerged as a major contributor to Prism's growth following the acquisition of G6 Hospitality in December 2024.

G6 contributed ₹14,107 crore to Prism's GBV in FY26, compared with ₹3,529 crore in FY25, reflecting its first full-year contribution to the group. The business also added 70 net storefronts during the year.

The acquisition has also strengthened Prism's international footprint, with the company now deriving more than 80% of its revenue from markets outside India.

Prism said it completed the integration of G6's technology platform into its unified technology stack within a year. The company is also deploying AI-led pricing and service tools at individual properties and centralising owner engagement from India.

Technology and AI Remain Central to the Strategy

Beyond its hotel aggregation and hospitality operations, Prism is increasingly positioning technology as a key differentiator.

The company has deployed AI-based tools for pricing and property-level services and is developing an autonomous "GM Agent" designed to manage several day-to-day hotel operations, including reconciliation, vendor renewals, occupancy-related activities and review action plans.

This represents a broader shift in Prism's strategy—from using technology to assist hotel operations to increasingly automating operational workflows.

IPO to Focus on Strengthening the Balance Sheet

Prism is also moving closer to a public-market debut.

The company has proposed a ₹6,650 crore fresh issue as part of its IPO plans. Importantly, the proposed issue is structured as a fresh issue, meaning existing shareholders are not offering shares through an Offer for Sale.

A significant portion of the IPO proceeds is expected to be used to reduce the company's debt burden. Prism has proposed utilising approximately ₹4,987.5 crore towards repayment or prepayment of borrowings.

The focus on deleveraging is significant given that Prism paid approximately ₹1,414 crore in interest during FY26. Reducing debt could therefore lower the company's interest burden and provide greater flexibility to deploy internally generated cash towards growth.

Investor Takeaway

Prism's FY26 performance reflects a significant improvement in scale and operating profitability. Revenue grew nearly 50%, EBITDA more than doubled and GBV grew close to 90%.

The company's international expansion, particularly through G6 Hospitality, has become an important growth engine, while technology and AI are increasingly being integrated into its operating model.

However, investors should look beyond the headline ₹994 crore PAT, given the ₹678 crore deferred-tax credit included in FY26 earnings. The more important indicators to track going forward will be operating EBITDA, cash generation, debt reduction, integration of international businesses and the sustainability of GBV growth.

With a proposed ₹6,650 crore IPO and a large portion of the proceeds earmarked for deleveraging, Prism's upcoming public-market journey could mark an important transition—from a high-growth hospitality platform to a more scaled and financially disciplined global hospitality technology business.