Just months before its highly anticipated IPO, OYO has claimed it stayed profitable in FY25 — but the numbers reveal a shocking twist.
The Ritesh Agarwal-led company reported a net profit of INR 244.8 Cr, marking its second year in the green. But dig deeper, and you’ll see this profit isn’t what it seems.
OYO’s bottom line was saved by a deferred tax gain of INR 765.6 Cr. Strip that out, and the reality hits hard: the company actually posted a loss of INR 489.3 Cr.
The Glitter vs The Grit
- Reported Net Profit FY25: INR 244.8 Cr
- Deferred Tax Gain: INR 765.6 Cr
- Actual Loss Without Gain: INR 489.3 Cr
In FY24, OYO had posted a pre-tax profit of INR 235.8 Cr. This year, the same company would’ve sunk deep into losses without an accounting advantage.
Ritesh Agarwal’s Bold Pitch
Back in May, founder Ritesh Agarwal told employees that OYO’s profit had soared 172% YoY to INR 623 Cr and that EBITDA jumped 27% to INR 1,132 Cr.
Now, with audited numbers painting a very different picture, investors are left wondering: was this optimism or spin?
The Shock Rebrand: PRISM Life
Adding to the drama, OYO quietly changed its corporate identity to PRISM Life. The move is meant to show diversification beyond hospitality — but critics say it’s a distraction tactic before the IPO.
What Investors Must Ask
Is OYO really a turnaround story — or just an accounting illusion dressed up for the markets? With its IPO around the corner, the stakes couldn’t be higher.
For India’s startup ecosystem, this listing could either restore confidence in unicorns… or become the next cautionary tale.
