Prismatic Company, the parent structure of Oyo, reported a 17% profit increase to 353 crore rupees in the first quarter of 2026-2027

PRISM, the parent company of the hotel chain OYO, which is preparing for an IPO, reported consolidated profit after tax (PAT) of 353 crore rupees for the first quarter ending in June. This figure represents a 17% increase compared to 301 crore rupees the previous year.

According to the company's audited financial statements, the quarterly profit included an deferred tax credit of approximately 244 crore rupees. PRISM's operating income increased by 35%, reaching 2,814 crore rupees in the first quarter of the 2026-2027 fiscal year, up from 2,078 crore rupees in the same quarter last year.

During the same period, the Gross Booking Value grew by 30%, amounting to nearly 9,600 crore rupees. Growth was observed across all business segments of the company, including hotels and vacation homes. Booked rooms in PRISM's hotel segment grew by 30% year-on-year, while the vacation home business showed a 28% growth in bookings.

Addressing shareholders at an Extraordinary General Meeting (EGM) in early October, PRISM founder Ritesh Agarwal noted that 'it is inspiring that this momentum continued into the first quarter of the 2027 fiscal year.' He emphasized that the performance results in the hotel and vacation home segments indicate improved gross margins and higher operating revenues, despite investments in brand expansion and strengthening customer demand.

Agarwal added that the company continues to grow its business while generating healthy operating income. He noted that the benefits of investments made over the past few years in technology, brands, and distribution capabilities are being felt, while maintaining aggressive investments.

During his address at the EGM, Agarwal highlighted the importance of the company's geographically diversified business, noting that North America remains a key market following the acquisition of G6 Hospitality. He stated that only G6 provided a Gross Booking Value of about 14,000 crore rupees during the 2026 fiscal year.

Other profitability metrics also strengthened in the June quarter: EBITDA grew by 24% year-on-year to 760 crore rupees, and adjusted EBITDA, excluding rent expenses, increased by 35% to 589 crore rupees.

The company's centralized technology platform is used across all markets to support pricing, distribution, booking, customer service, and property management. PRISM is also implementing artificial intelligence in pricing processes and workflows; its General Manager, Grace AI, supports operations in several hotels in Western markets.

Notably, on October 26, an amendment was filed with SEBI stating that the proposed Initial Public Offering (IPO fresh issue) was reduced to 3,350 crore rupees, with 2,512.5 crore rupees allocated for the repayment or early repayment of borrowings through a subsidiary, and the pre-IPO placement was excluded.

Sources reported that OYO's parent company, PRISM, intends to nearly halve the size of the new issuance within the proposed Initial Public Offering (IPO). The planned volume has been reduced to 3,350 crore rupees from the initial nearly 6,650 crore rupees.

Individuals familiar with the situation told PTI that this reduction in issuance size is due to sustainable cash generation and an improved balance sheet for the company. These factors have led to the capital raising need being lower than initially anticipated.

One informed source noted that the original issuance size was calculated before the company's more recent financial reports were available. Since cash generation remains strong and the balance sheet is improving, the financing requirement has decreased, allowing the company to reduce the amount of equity it plans to raise.

The main goal is to raise the necessary funds for the business while maintaining an efficient capital structure. According to the plan, outstanding debt will be repaid over the next two to three years using cash flows generated by the company itself.

Previously, OYO planned to raise up to 6,650 crore rupees through the IPO, of which about 5,000 crore rupees was earmarked for debt repayment. The revised issuance size underscores PRISM's ongoing focus on reducing outstanding debt obligations.

Under the revised structure, most of the proceeds from the offering are intended to be used for the repayment or early repayment of certain borrowings, either fully or partially.

This revision comes as PRISM moves toward the next stage of its proposed IPO after submitting a previously updated draft prospectus.

Moody's Ratings upgraded PRISM's outlook from 'stable' to 'positive', while affirming the corporate family rating of this travel tech unicorn at B2. Explaining the basis for these ratings, Moody's stated that it expects OYO's EBITDA to grow to approximately 3,000 crore rupees ($315 million USD) over the next 12–18 months as the company continues to scale and add new sales points to its platform.

For the fiscal year 2026, OYO's EBITDA is expected to more than double, reaching 2,630 crore rupees compared to 1,080 crore rupees in fiscal year 2025.

OYO was founded in 2013 by Raitesh Agarwal, who currently holds 30.52 percent of the company's shares. The largest shareholder is SVF India Holdings (Cayman) Ltd, a subsidiary of SoftBank Group Corp, which holds 40.04% of the shares.