“These repayments are expected to generate a recurring annual benefit of approximately Rs 50 crore in PAT—a benefit that is already evident in our strong Q1 FY26 performance. As a reference, IHCL—the leading hotel company in India—delivered Q1 FY26 EBITDA of INR 637 crore and PAT of INR 296 crore, demonstrating its continued leadership and the bullishness in the hospitality industry,” OYO’s founder Ritesh Agarwal wrote in an email to the management committee.
He also stated that OYO is advancing premiumisation while retaining its strong focus on the value segment.
“Our in-house tech stack, built over years, acts as a key competitive advantage and cost-saving lever, utilising innovations like dynamic locks and virtual check-ins. Additionally, the strategic acquisition of G6 is showing early success through rapid integration and synergies in technology, operations, and marketing. New direct customer initiatives, such as the My6 app and expanded large account pools, are strengthening our growth trajectory,” the message stated.
Agarwal also informed shareholders regarding ongoing efforts, including the expansion of Sunday Hotels, and properties in the US under the Motel 6 brand.
“By taking these strategic investments in one go, we have laid the groundwork for sustainable and profitable growth. As these investments start delivering returns, we anticipate a much stronger performance in the coming periods,” the message added.