Credit Rating Upgrade: Moody’s upgraded Oravel Stays’ credit rating from B3 to B2 with a stable outlook, reflecting improved profitability and higher creditworthiness.
Record Profitability: OYO posted its first-ever profit-after-tax of ₹229 crore in FY24, driven by eight consecutive quarters of positive-adjusted EBITDA.
Strong Liquidity Position: Liquidity is strong, with $203 million as of September 2024 in cash, $299 million in operational cash flow, and $825 million in committed credit facilities that will cover its $525M Motel 6 acquisition and debts service over the next 24 months.
Financial Restructuring and Market Performance: OYO will use $174M in equity capital raised between June and August 2024 and refinancing to repay its term loan B maturing in June 2026, despite a share price drop from ₹82 to ₹55.
Projected Financial Growth: OYO’s EBITDA is projected to reach $200 million in FY26, reducing its debt/EBITDA leverage from 4.8X in FY24 to 4.2X in FY26.
