OYO Parent PRISM Reports FY26 Profit of ₹994 Crore as Revenue Jumps 50%
OYO parent PRISM has reported a sharp improvement in its FY26 financial performance, with consolidated profit after tax rising more than fourfold to ₹994 crore as revenue from operations increased nearly 50% and the full-year contribution from G6 Hospitality significantly expanded the group's international business.
Consolidated revenue from operations increased 49.7% to ₹9,358 crore in FY26 from ₹6,353 crore in the previous financial year.
EBITDA more than doubled to approximately ₹2,594 crore, compared with ₹1,083.5 crore in FY25, while gross booking value surged 88.5% to ₹30,683 crore.
The company's reported profit after tax reached ₹994.18 crore, compared with ₹244.82 crore in FY25.
However, the headline profit figure requires an important qualification: FY26 profit included a substantial deferred-tax credit, meaning the entire increase should not be interpreted as cash earnings from hotel operations.
Even with that accounting effect, PRISM's underlying operating indicators showed substantial improvement, including higher gross profit, EBITDA, booking volumes and operating cash generation.
The results arrive at a strategically important moment as PRISM prepares for a proposed ₹6,650 crore initial public offering and seeks to use a major portion of the proceeds to reduce its debt burden.
PRISM Profit Rises More Than Fourfold to ₹994 Crore
PRISM reported FY26 consolidated profit after tax of:
₹994.18 crore
compared with:
₹244.82 crore in FY25.
That represents an increase of more than four times year-on-year.
The improvement marks another significant milestone in the financial transformation of the hospitality technology company, which spent much of its earlier growth phase prioritising rapid expansion over profitability.
PRISM has now reported its fourth consecutive financial year of positive EBITDA.
Revenue From Operations Jumps 49.7%
Consolidated revenue from operations increased from approximately:
₹6,353 crore in FY25
to:
₹9,357.98 crore in FY26.
That represents year-on-year growth of:
49.7%.
The increase was driven by several factors, including:
higher business volumes,
a stronger contribution from premium properties,
growth in company-serviced hotels,
international expansion,
operating leverage,
and the first full-year contribution from G6 Hospitality.
The scale of the revenue increase demonstrates how significantly PRISM's business mix has changed following its international acquisitions.
EBITDA More Than Doubles to ₹2,594 Crore
PRISM's EBITDA increased to approximately:
₹2,593.84 crore
from:
₹1,083.5 crore in FY25.
The increase means EBITDA grew considerably faster than revenue.
That is an important operating indicator because it suggests the company generated greater earnings from each incremental unit of business.
The improvement reflects the benefits of:
operating leverage,
technology integration,
business mix,
centralised operations,
and greater scale.
For an asset-light hospitality platform, the ability to increase earnings faster than revenue is particularly important to the long-term business model.
Gross Profit Rises 82.5% to ₹5,700 Crore
Gross profit also recorded significant growth.
PRISM's gross profit increased approximately:
82.5%
to:
₹5,699.79 crore.
This growth substantially exceeded the 49.7% increase in revenue.
The improvement indicates that the composition of the company's revenue became more favourable during the year.
PRISM attributed its stronger financial performance partly to a greater contribution from premium and company-serviced hotels.
Gross Booking Value Surges 88.5%
Another major indicator of the company's expanding scale was gross booking value.
PRISM reported FY26 GBV of:
₹30,683.23 crore
compared with:
₹16,279 crore in FY25.
That represents growth of:
88.5%.
GBV measures the overall value of bookings generated across PRISM's platforms and businesses before accounting for the company's own revenue share.
The metric provides an indication of the total commercial activity taking place across the hospitality ecosystem operated by the company.
G6 Hospitality Becomes a Major Growth Engine
The full-year contribution from G6 Hospitality was one of the most important drivers of PRISM's FY26 growth.
PRISM acquired the US-based motel business in:
December 2024.
G6 operates well-known North American hospitality brands including:
Motel 6
and
Studio 6.
Because FY26 included G6 for an entire financial year, the acquisition had a significantly larger impact on PRISM's consolidated financial results than in FY25.
G6 Generates ₹14,107 Crore of Gross Booking Value
G6 Hospitality generated approximately:
₹14,107 crore
of gross booking value during FY26.
That compares with approximately:
₹3,529 crore in FY25.
The dramatic increase primarily reflects the first full-year consolidation of the business following the December 2024 acquisition.
G6 alone accounted for a substantial share of PRISM's overall ₹30,683 crore gross booking value.
North America consequently became one of the most important contributors to the group's scale.
G6 Adds 70 Net Storefronts
The US business also expanded its property footprint.
G6 added:
70 net storefronts
during FY26.
PRISM described this as the brand's strongest annual net additions in recent years.
Property additions are strategically important because PRISM's hospitality model benefits from increasing the number of properties operating through its brands and technology platform.
Each additional property can potentially expand:
room inventory,
booking volumes,
brand visibility,
and fee-generating opportunities.
PRISM Integrates G6 Technology Within One Year
Beyond financial consolidation, PRISM said it completed the integration of G6's technology stack into its unified technology platform within approximately one year.
The company replaced fragmented legacy systems with a common technology backbone.
PRISM has also introduced AI-led tools covering:
pricing,
service management,
property operations,
and owner engagement.
The company believes this centralised infrastructure can improve operating efficiency across geographically dispersed properties.
Centralised Technology Is Becoming Core to PRISM's Strategy
PRISM now operates a single technology-enabled platform across more than:
35 countries.
Several important functions are substantially built and operated from India, including:
technology and product engineering,
pricing and revenue management,
reservations,
customer support,
finance,
marketing operations,
and procurement.
This structure allows the company to expand internationally without building a completely separate corporate infrastructure in every market.
That model is central to the operating leverage PRISM is attempting to demonstrate ahead of its public listing.
International Operations Now Dominate Revenue
PRISM's transformation from an India-focused budget-hotel aggregator into an international hospitality group has significantly changed its geographic revenue mix.
More than 80% of the group's revenue now comes from international operations.
North America has become particularly important following the G6 acquisition.
Europe also remains a substantial market through PRISM's vacation-home and accommodation businesses.
India remains strategically important, particularly as the company expands into premium and company-serviced hotel categories, but the group's financial profile is increasingly global.
Hotel GBV Excluding G6 Also Grows Strongly
Importantly, PRISM's growth was not entirely attributable to G6.
Gross booking value from its hotel businesses excluding G6 increased:
36.5%
to approximately:
₹10,939 crore.
This indicates that the existing hotel platform continued expanding even after removing the impact of the major US acquisition.
Growth in the legacy business is important because acquisition-driven expansion alone cannot demonstrate sustainable underlying operating momentum.
Homes Business Grows 19.4%
PRISM's homes business also recorded growth.
GBV from the segment increased approximately:
19.4%
to:
₹5,447 crore.
The company's European vacation-home portfolio includes brands such as Belvilla.
The segment provides PRISM with diversification beyond traditional hotels and motels.
Vacation rentals operate under different demand patterns and customer behaviours, allowing the company to participate across a broader accommodation market.
Direct Bookings Become Increasingly Important
PRISM is also attempting to increase the proportion of bookings generated through its own distribution channels.
Approximately:
67% of room nights used during FY26 came through non-commissionable channels.
These included the OYO app and other direct channels.
Direct bookings are strategically valuable because third-party online travel agencies generally charge commissions for delivering customers.
Increasing direct demand can therefore reduce distribution expenses and strengthen relationships with travellers.
OYO App Supports Direct Distribution
The OYO application remains an important component of PRISM's consumer distribution infrastructure.
The company said the app has become the eighth most downloaded hotel accommodation booking application globally.
PRISM has also introduced additional digital products targeting specific customer segments.
Its premium-focused CheckIn application was launched in September 2025 to deepen engagement with customers seeking higher-end accommodation.
The strategy reflects the company's movement beyond its historical association with budget hotels.
PRISM Is Expanding Into Premium Hospitality
Premiumisation has become an increasingly important part of PRISM's strategy.
The company is expanding its presence in:
premium hotels,
company-serviced properties,
and higher-value accommodation categories.
This can potentially improve economics because premium properties generally generate higher average booking values.
A stronger premium mix can also diversify PRISM's customer base and reduce dependence on highly price-sensitive budget travellers.
AI Is Becoming Central to Hotel Operations
Artificial intelligence has become another important component of PRISM's operating strategy.
Chairman Ritesh Agarwal said close to:
94% of new code written at PRISM is authored using AI.
The company says its technology platform has achieved a:
99.99% crash-free rate.
PRISM is deploying AI across both software development and hotel operations.
This represents an unusually aggressive attempt to use AI as an operating infrastructure rather than simply as a customer-facing feature.
Pricing Engine Recalibrates Hourly
PRISM's pricing technology continuously evaluates variables such as:
demand,
seasonality,
booking windows,
local events,
competitor pricing,
and customer search behaviour.
The company's pricing engine recalibrates rates:
hourly.
Dynamic pricing is particularly important in hospitality because an unsold hotel room represents inventory that cannot be sold after the night has passed.
Accurate pricing can therefore materially affect occupancy and revenue.
Bolt.ai Connects Inventory to More Than 230 Partners
PRISM's in-house channel-management platform, Bolt.ai, connects accommodation inventory with more than:
230 distribution partners
in real time.
Distribution technology allows hotel operators to make rooms available across multiple booking platforms while maintaining centralised inventory information.
Automating this process can reduce manual work and minimise problems such as inconsistent availability or pricing.
PRISM Is Developing an Autonomous GM Agent
The company is now developing what it calls the:
GM Agent.
The system is intended to automate several day-to-day property-management activities.
Potential functions include:
reconciliation,
vendor renewals,
occupancy management,
and review-related action plans.
PRISM's longer-term objective is to move from AI that assists hotel managers toward systems capable of autonomously executing significant portions of daily property operations.
If successful, that could further improve operating efficiency across a large network of properties.
Headline ₹994 Crore Profit Includes Deferred-Tax Credit
While PRISM's operating performance improved materially, investors assessing the headline ₹994 crore profit need to consider the contribution from deferred taxation.
The FY26 profit figure included a substantial:
₹678 crore deferred-tax credit.
Deferred-tax credits are accounting items and do not represent an equivalent amount of cash generated during the year.
This means the ₹994 crore reported profit should not be interpreted as ₹994 crore of incremental cash earnings.
The distinction is particularly important ahead of an IPO, when investors will closely examine the quality and repeatability of earnings.
Profit Before Tax Was Significantly Lower Than PAT
PRISM's underlying financial statements illustrate the impact of the tax accounting.
Profit before tax was approximately:
₹399 crore.
The tax line then increased reported earnings rather than reducing them.
The resulting profit after tax reached approximately:
₹994 crore.
A significant part of this difference reflects recognition of deferred tax assets associated with historical losses that may be available to offset future taxable profits.
The accounting treatment can be appropriate while still being non-cash in nature.
Historical Losses Can Create Future Tax Benefits
Companies that generate losses can often carry those losses forward under applicable tax rules.
If the business later becomes profitable, accumulated losses may be used to reduce future taxable income.
Accounting standards allow companies to recognise a deferred tax asset when management concludes there is sufficient likelihood that future profits will allow those tax benefits to be utilised.
PRISM's improving profitability therefore allowed it to recognise additional deferred-tax benefits.
However, such recognition is fundamentally different from operating cash generation.
Interest Costs Remain Substantial
Debt remains one of the most important financial considerations for PRISM.
The company incurred approximately:
₹1,414 crore in interest expense during FY26.
That represents a substantial financial burden relative to its operating earnings.
PRISM accumulated significant debt partly through its international expansion and acquisitions.
Reducing that financing burden is therefore central to its strategy ahead of the proposed IPO.
PRISM Plans ₹6,650 Crore Fresh-Issue IPO
PRISM has filed an Updated Draft Red Herring Prospectus with the Securities and Exchange Board of India for a proposed IPO.
The company is considering raising up to:
₹6,650 crore
through a fresh issue of equity shares.
Because the proposed capital raise is a fresh issue, proceeds would go to the company rather than selling shareholders.
That gives PRISM an opportunity to materially reshape its balance sheet.
Debt Reduction Is a Major IPO Objective
PRISM plans to use a substantial portion of the proposed IPO proceeds to repay or prepay outstanding borrowings.
Reducing debt could have several benefits:
lower interest expenses,
stronger cash flows,
lower financial risk,
greater flexibility for future investment,
and improved profitability.
Given FY26 interest costs of ₹1,414 crore, even a substantial reduction in financing expense could have a meaningful impact on future earnings.
IPO Investors Will Focus on Earnings Quality
The FY26 results provide PRISM with a considerably stronger financial story ahead of its proposed public listing.
Revenue increased nearly 50%.
EBITDA more than doubled.
Gross profit rose more than 80%.
GBV increased nearly 89%.
The company remained EBITDA-positive for a fourth consecutive year.
At the same time, potential investors are likely to distinguish carefully between operating improvement and the deferred-tax benefit embedded in reported PAT.
The key question will be whether PRISM can translate higher EBITDA into sustainable pre-tax profit and free cash flow after financing expenses.
G6 Integration Will Remain a Key Test
The G6 acquisition has dramatically expanded PRISM's scale.
That makes successful integration critical.
Investors will watch whether PRISM can:
continue adding properties,
increase direct bookings,
improve G6 margins,
reduce operating complexity,
and generate sufficient cash returns from the acquisition.
The first full year indicates meaningful progress, but long-term acquisition economics will depend on sustained performance over several years.
PRISM Is Becoming a Different Company From Early OYO
The FY26 results also demonstrate how significantly the company has evolved.
OYO initially became known primarily as an Indian budget-hotel platform.
PRISM today operates across:
hotels,
motels,
vacation homes,
premium accommodation,
technology infrastructure,
property management,
and global distribution.
Its largest growth driver in FY26 came from North America rather than India.
This diversification could broaden the company's growth opportunities while simultaneously increasing the complexity of its operations.
Conclusion
OYO parent PRISM reported a significant improvement in FY26 performance, with revenue from operations rising 49.7% to ₹9,358 crore and reported profit after tax increasing more than fourfold to ₹994 crore.
EBITDA more than doubled to ₹2,594 crore, gross profit increased 82.5% to ₹5,700 crore, and gross booking value surged 88.5% to ₹30,683 crore.
The first full-year contribution from G6 Hospitality played a major role, generating approximately ₹14,107 crore of GBV and strengthening North America as a core market for the group.
However, the headline profit figure included a substantial ₹678 crore deferred-tax credit, making operating profitability, cash generation and debt reduction more important indicators of PRISM's sustainable earnings trajectory.
With the company preparing for a proposed ₹6,650 crore fresh-issue IPO, investors will now focus on whether PRISM can use its expanding scale, AI-driven technology platform and planned debt reduction to convert stronger EBITDA into durable pre-tax earnings and cash flows.
FY26 therefore represents more than a year of rapid growth for PRISM. It provides an important test of whether the former high-growth OYO model has evolved into a financially sustainable global hospitality platform.