OYO parent Prism has reported a more than four-fold jump in consolidated profit after tax (PAT) to ₹994.18 crore for fiscal 2026, compared with ₹244.82 crore in FY25, as the hospitality platform delivered strong growth in bookings, revenue and EBITDA. Consolidated revenue from operations rose 49.7% to ₹9,357.98 crore, while EBITDA more than doubled to ₹2,593.84 crore.
The sharp improvement comes as Prism moves toward its proposed public listing. The company has filed an Updated Draft Red Herring Prospectus-I (UDRHP-I) with SEBI for a fresh issue of up to ₹6,650 crore, with debt reduction expected to be a major use of the IPO proceeds. However, the FY26 profit number includes a ₹678 crore deferred-tax credit, making the quality of the reported earnings an important consideration for prospective IPO investors.
Prism Revenue Rises Nearly 50% In FY26
Prism’s operating performance strengthened considerably during FY26, helped by higher business volumes, a stronger contribution from premium and company-serviced hotels, operating leverage and the first full-year contribution from US-based G6 Hospitality.
Gross Booking Value (GBV) increased 88.5% to ₹30,683.23 crore from ₹16,279 crore in FY25, while gross profit rose 82.5% to ₹5,699.79 crore.
Prism FY26 Financial Snapshot
| Financial Metric | FY25 | FY26 | YoY Change |
|---|---|---|---|
| Revenue from operations | ₹6,252.8 crore | ₹9,357.98 crore | +49.7% |
| Gross Booking Value | ₹16,279 crore | ₹30,683.23 crore | +88.5% |
| Gross profit | ~₹3,123 crore | ₹5,699.79 crore | +82.5% |
| EBITDA | ₹1,083.5 crore | ₹2,593.84 crore | +139.4% |
| Profit after tax | ₹244.82 crore | ₹994.18 crore | +306% |
| Interest paid | — | ₹1,414 crore | — |
| Deferred-tax credit | — | ₹678 crore | — |
The numbers show that Prism’s operating growth was substantial even before considering the tax credit. EBITDA increased by roughly 2.4 times, while GBV expanded by nearly 1.9 times.
Profit Jump Needs To Be Read Alongside Tax Credit
The four-fold increase in PAT is significant, but it does not entirely represent an equivalent improvement in cash earnings.
Prism’s FY26 annual report includes a deferred-tax credit of ₹678 crore. This accounting benefit contributed materially to the reported net profit of ₹994.18 crore.
This distinction is important for investors preparing to assess the company’s IPO valuation.
Reported PAT Vs Operating Performance
FY25 PAT: ₹244.82 crore
↓
FY26 PAT: ₹994.18 crore
↓
Increase: ₹749.36 crore
↓
FY26 Deferred-Tax Credit: ₹678 crore
The tax credit does not negate the improvement in Prism’s underlying operating performance, but it means the headline 306% increase in PAT should not be interpreted as a comparable increase in recurring cash profitability.
Operating indicators provide a different picture: revenue rose nearly 50%, gross profit increased 82.5% and EBITDA more than doubled.
EBITDA More Than Doubles
Prism’s EBITDA increased from ₹1,083.5 crore in FY25 to ₹2,593.84 crore in FY26, an increase of about 139%.
This growth was substantially faster than revenue growth, indicating improved operating leverage.
The company attributed the improvement to a stronger business mix, higher volumes, premium and company-serviced hotels, and the full-year contribution of G6 Hospitality.
Prism’s Operating Growth
| Metric | FY25 | FY26 | Growth |
|---|---|---|---|
| Revenue | ₹6,253 crore | ₹9,358 crore | 49.7% |
| Gross profit | ~₹3,123 crore | ₹5,700 crore | 82.5% |
| EBITDA | ₹1,084 crore | ₹2,594 crore | 139.4% |
| GBV | ₹16,279 crore | ₹30,683 crore | 88.5% |
The faster growth in gross profit and EBITDA compared with revenue suggests that Prism is generating greater operating leverage as its platform scales.
G6 Hospitality Becomes A Major Growth Driver
One of the biggest contributors to Prism’s FY26 expansion was G6 Hospitality, the US-based hotel business acquired in December 2024.
FY26 was G6’s first full year within the Prism group. The business generated GBV of ₹14,107.13 crore, compared with ₹3,529 crore in FY25 when it contributed only part of the year.
G6 also added 70 net storefronts during FY26, its strongest annual net additions in recent years.
G6 Hospitality Performance
| Indicator | FY25 | FY26 |
|---|---|---|
| G6 GBV | ₹3,529 crore | ₹14,107.13 crore |
| FY26 contribution | Partial year | Full year |
| Net storefront additions | — | 70 |
| Acquisition date | — | December 2024 |
North America consequently became the largest contributor to the increase in Prism’s group scale during FY26.
The acquisition has also given Prism a significantly larger international operating footprint.
Prism’s Non-G6 Hotel Business Also Grew
The company’s growth was not entirely dependent on G6.
GBV from hotels excluding G6 increased 36.5% to ₹10,939 crore in FY26. The homes business also grew 19.4% to ₹5,447 crore.
This indicates that the group’s core hotel operations continued to expand even without the contribution from the newly acquired US business.
Business Segment Growth
| Business | FY26 GBV | FY26 Growth / Context |
|---|---|---|
| G6 Hospitality | ₹14,107 crore | First full-year contribution |
| Hotels excluding G6 | ₹10,939 crore | +36.5% |
| Homes | ₹5,447 crore | +19.4% |
| Total Prism GBV | ₹30,683 crore | +88.5% |
The combination of organic growth and acquisition-led expansion has significantly increased Prism’s overall scale.
Prism Operates Across More Than 35 Countries
Prism said it now operates a single technology-enabled platform across more than 35 countries.
Technology and product engineering, pricing and revenue management, reservations, customer support, finance, marketing operations and procurement are largely built and operated from India.
The company argues that this centralized model allows it to expand internationally without having to recreate a full corporate infrastructure in every market.
This structure is also intended to create operating leverage as the business grows.
Centralized Technology
→ Shared Revenue Management
→ Common Reservations Infrastructure
→ Centralized Support & Operations
→ Lower Incremental Corporate Costs
→ Operating Leverage
AI Is Becoming Central To Prism’s Hotel Operations
Prism is also increasingly using artificial intelligence across its technology platform.
The company said close to 94% of new code written at Prism is now authored by AI, while its crash-free rate has improved to 99.99%. Its pricing engine recalibrates hourly using factors including demand, seasonality, booking windows, local events, competitor pricing and search behavior.
Prism has also integrated G6’s technology stack into its unified platform within one year of the acquisition.
Prism’s Technology Initiatives
| Technology Area | Reported Development |
|---|---|
| AI-generated code | ~94% of new code |
| Crash-free rate | 99.99% |
| Pricing engine | Hourly recalibration |
| Pricing inputs | Demand, seasonality, booking windows, events, competitors, search behavior |
| Channel manager | Bolt.ai |
| Distribution partners | 230+ |
| G6 technology integration | Completed within one year |
| Next initiative | GM Agent |
The company is now developing a “GM Agent,” described as an autonomous layer designed to run daily property operations, including reconciliation, vendor renewals, occupancy calls and review action plans.
Direct Bookings Are Becoming More Important
Another important change in Prism’s business model is the increasing contribution from direct, non-commissionable channels.
Approximately 67% of room nights used during FY26 came through non-commissionable channels, supported by the OYO app and other direct channels.
This can be strategically important because bookings made directly through a company’s own channels can reduce dependence on third-party online travel agencies and the commissions associated with those channels.
Prism’s Direct-Demand Strategy
OYO App
Direct Channels
CheckIn App
↓
Higher Direct Booking Share
↓
Lower Commission Dependence
↓
Potentially Better Unit Economics
Prism launched its premium-focused CheckIn application in September 2025 to deepen direct engagement and increase repeat demand.
Debt Reduction Is A Key IPO Objective
Despite the improvement in profitability and cash generation, Prism continues to carry a substantial debt burden.
The company paid ₹1,414 crore in interest during FY26 on its outstanding loans. A major portion of the proposed IPO proceeds is expected to be used to reduce this debt.
Prism is seeking to raise up to ₹6,650 crore through a fresh issue of equity shares.
Proposed IPO And Debt Strategy
| IPO / Debt Indicator | Details |
|---|---|
| Proposed IPO | Up to ₹6,650 crore |
| Issue type | Fresh issue |
| IPO document | UDRHP-I filed with SEBI |
| FY26 interest expense | ₹1,414 crore |
| Major use of proceeds | Debt reduction |
| Other strategic objective | Strengthen balance sheet |
Using IPO proceeds to repay debt could lower future interest costs and potentially improve the company’s financial flexibility.
However, it would also mean that a substantial portion of the new equity capital is directed toward deleveraging rather than purely funding expansion.
Prism’s IPO Comes After A Major Business Transformation
The proposed listing follows a significant transformation of the OYO business.
The company has expanded beyond its traditional budget-hotel model into premium hotels, company-serviced properties, vacation homes and international hotel businesses.
The acquisition of G6 has been particularly important in increasing its North American presence, while brands such as Belvilla provide exposure to European homes and listings.
The company said the substantial majority of its contracts remain management contracts, under which property owners provide the underlying capital and Prism’s economics are linked to hotel performance.
This asset-light structure can allow the platform to expand without directly funding the entire cost of hotel properties.
Key Strengths And Risks Ahead Of IPO
The FY26 results provide several positive indicators, including strong revenue growth, rising GBV, expanding EBITDA and international diversification.
However, investors will also need to assess the sustainability of these numbers.
The large deferred-tax credit behind a significant portion of FY26 PAT, the ₹1,414 crore interest expense and the integration of international businesses are important considerations.
Prism IPO: Key Factors To Watch
| Positive Factors | Risks / Watch Points |
|---|---|
| 49.7% revenue growth | Large deferred-tax credit in PAT |
| 88.5% GBV growth | ₹1,414 crore interest expense |
| EBITDA more than doubled | Debt burden |
| G6 expansion | Integration and international exposure |
| 35+ countries | Foreign-market operating risks |
| 67% non-commissionable room nights | Sustaining direct-booking momentum |
| AI-led operations | Execution and technology risks |
| Asset-light management model | Dependence on hotel-owner performance |
| Proposed ₹6,650 crore IPO | IPO valuation and market conditions |
The IPO valuation will ultimately determine whether the company’s growth and profitability justify the price investors are asked to pay.
The Bigger Picture
Prism’s FY26 results show a business that has expanded rapidly in both scale and operating profitability ahead of its proposed IPO. Revenue rose nearly 50%, GBV surged 88.5% and EBITDA more than doubled, while G6 Hospitality became a major contributor to the group’s international expansion.
The four-fold PAT increase, however, needs to be viewed with caution because ₹678 crore of the FY26 profit came from a deferred-tax credit. The more important operating indicators are the growth in revenue, gross profit and EBITDA, alongside the company’s ability to manage its debt and integrate international operations.
Looking Ahead
Prism’s proposed ₹6,650 crore IPO will put the company’s financial transformation under closer public-market scrutiny. Investors are likely to focus on the sustainability of EBITDA growth, the contribution from G6, direct-booking trends, debt reduction and the extent to which AI-driven operating efficiencies translate into recurring profitability.
The company enters the IPO process with substantially greater scale than it had in earlier years, but its valuation will depend on more than its FY26 headline profit. Demonstrating that operating gains can continue after the deferred-tax benefit normalizes, while reducing interest costs and maintaining growth across its international portfolio, will be central to Prism’s public-market story
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