Prism, the parent company of hotel chain Oyo, has reported consolidated profit after tax of Rs 353 crore for the quarter ended June, a rise of 17 per cent from Rs 301 crore a year earlier. The figures come from audited financials seen by The Economic Times and PTI, and were reported on 2 November.
The headline profit needs context before it is read as an operating result. The quarter carried a deferred tax credit of roughly Rs 244 crore, which is close to 69 per cent of the reported bottom line. Strip that out and the sturdier measure of the business is operating earnings: EBITDA rose 24 per cent to Rs 760 crore from Rs 611 crore.
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The Quarter In Numbers
Revenue from operations grew 35 per cent to Rs 2,814 crore from Rs 2,078 crore. Gross booking value, the total that customers spent on bookings made through the platform, rose 30 per cent to about Rs 9,600 crore from Rs 7,408 crore. Hotel bookings grew 30 per cent and the vacation homes business grew 28 per cent, so the expansion was broad rather than concentrated in one format.
Two ratios explain the shape of the quarter. Revenue worked out to about 29 per cent of gross booking value, the share of customer spend the platform keeps. EBITDA margin, however, slipped to 27 per cent from 29.4 per cent a year earlier, because revenue grew faster than operating earnings did.
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Why Growth Is Outrunning Profit
A 35 per cent rise in revenue against a 24 per cent rise in EBITDA is the arithmetic of a company spending to expand. Founder Ritesh Agarwal told shareholders at an extraordinary general meeting in early October that margins and operating earnings were improving even as the company kept investing in brands and demand, and that the momentum had carried into the June quarter.
Prism also reports an adjusted EBITDA figure net of lease expenses, which Agarwal put at Rs 589 crore, up 35 per cent year on year. For a hotel business that runs a mix of owned, leased and franchised properties, the lease-adjusted number is the fairer read of what the platform earns after paying for the roofs it uses.
North America And The G6 Weight
The other half of the story is geography. Prism’s purchase of G6 Hospitality, the American budget hotel group behind Motel 6, has made North America a core market. G6 alone contributed about Rs 14,000 crore of gross booking value in the 2025-26 financial year. Against the June quarter’s Rs 9,600 crore, an annualised group run rate of roughly Rs 38,400 crore implies G6 is close to a third of the platform’s bookings.
The company has changed shape to get there. What began as Oravel Stays, the entity behind Oyo, now trades under the Prism name after a rebrand built around a portfolio that spans hotels, vacation homes and American budget chains, rather than the Indian budget room business that built the brand.
The IPO Question
All of this matters because Prism is preparing to list. The Economic Times reported on 29 October that the company plans to nearly halve the fresh issue in its initial public offering to Rs 3,350 crore from Rs 6,650 crore, with most of the proceeds going towards repaying borrowings and the rest of the debt to be cleared from cash flows over two to three years.
A smaller fresh issue cuts dilution for existing shareholders, but it also says the company believes its own cash generation can carry more of the debt load. That is the claim these June quarter figures have to support, and it is why the lease-adjusted profit and the margin trend will matter more to institutional investors than the Rs 353 crore headline.
What To Watch
Three things to track in the next set of numbers: whether EBITDA margin steadies near 27 per cent as the investment cycle matures, whether gross booking value keeps growing at 30 per cent in North America as well as India, and whether OYO confirms a listing timeline for the current quarter.
For now the operating business is growing faster than the reported profit suggests, and the profit is flatter than the tax credit implies. Both halves of that sentence are the story.
