OYO Parent PRISM Reports ₹748 Crore Profit, ₹6,941 Crore Revenue Ahead of ₹6,650 Crore IPO

OYO's parent company, PRISM, has reported a strong financial performance for the first nine months of FY2025-26 (9M FY26) ahead of its proposed ₹6,650 crore Initial Public Offering (IPO). The company posted revenue from operations of ₹6,941 crore, already surpassing its entire FY25 revenue of ₹6,253 crore, while reporting a net profit of ₹748 crore during the period.

The latest financial update comes after PRISM filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The company's improved financial performance has been driven by strong international operations, growth in accommodation services, booking commissions and the successful integration of its global hospitality businesses, particularly in the United States.

International operations continued to dominate PRISM's business, contributing more than 83% of total operating revenue, while the acquisition of G6 Hospitality, the operator of Motel 6 and Studio 6, has strengthened the company's presence in North America. The IPO proceeds are expected to be largely used for debt repayment, helping improve the company's balance sheet ahead of its public listing.

PRISM 9M FY26 Financial Highlights

Revenue Crosses Full-Year FY25

PRISM reported ₹6,941 crore in revenue from operations during the first nine months of FY26, exceeding its entire FY25 revenue of ₹6,253 crore by nearly 11%.

The strong growth reflects higher business volumes across its global hospitality platform and continued expansion in international markets.

Revenue Breakdown

Accommodation services and booking commissions remained the company's primary revenue drivers.

Together, accommodation services and booking commissions contributed more than 86% of total operating revenue.

International Business Drives Growth

International operations continued to contribute the majority of PRISM's business.

More than 83% of operating revenue came from overseas markets, highlighting the company's increasing global footprint.

The company stated that its U.S. business has emerged as one of its fastest-growing segments following the acquisition of G6 Hospitality, which operates the Motel 6 and Studio 6 hotel brands across the United States and Canada.

Expanding Global Presence

As of 31 December 2025, PRISM operated a diversified hospitality network across multiple markets.

The company's broad global footprint continues to support its revenue diversification strategy.

Other Income Boosts Total Earnings

Apart from operating revenue, PRISM generated approximately ₹225 crore in non-operating income, primarily through:

• Interest income
• Fair value gains following changes in subsidiary ownership

This lifted total income to ₹7,166 crore during the first nine months of FY26.

Expense Overview

Lease-related expenses remained the company's largest cost component.

The company also incurred administrative expenses including customer support, IT infrastructure, professional fees and operational overheads.

Profitability Improves

PRISM reported a net profit of ₹748 crore during the first nine months of FY26.

The reported profit includes a deferred tax credit of ₹559 crore, while EBITDA stood at ₹1,968 crore, indicating continued operational improvement.

IPO Fund Utilisation

According to the Updated Draft Red Herring Prospectus, PRISM plans to use the IPO proceeds primarily to strengthen its balance sheet.

Reducing borrowings is expected to improve the company's financial position ahead of its stock market debut.

What Investors Should Watch

Investors will closely monitor several factors as PRISM moves closer to its IPO:

• Progress of SEBI approval for the IPO.
• Growth in international operations.
• Integration and performance of G6 Hospitality.
• Debt reduction after the IPO.
• Future profitability excluding one-time tax benefits.
• Expansion of premium hospitality brands.

The company's improving financial performance and international diversification are expected to remain key themes ahead of its public listing.

Key Takeaways

How much revenue did PRISM report in 9M FY26?

PRISM reported ₹6,941 crore in revenue from operations during the first nine months of FY26.

What was the company's net profit?

The company posted a net profit of ₹748 crore, including a ₹559 crore deferred tax credit.

Which business contributed the most revenue?

Accommodation services and booking commissions together contributed more than 86% of total operating revenue.

How much revenue came from international markets?

International operations generated ₹5,814 crore, accounting for more than 83% of total operating revenue.

How will PRISM use the IPO proceeds?

Around 75% of the IPO proceeds, or ₹4,987.5 crore, will be used to repay borrowings, while the remaining funds will be allocated toward general corporate purposes.