OYO – Fitch Revises Outlook to Positive on Potential Deleveraging

Expert Analysis:

• Positive outlook: Fitch revised the outlook on OYO parent PRISM from Stable to Positive, citing expected deleveraging driven by EBITDA growth and a more conservative capital structure.

• Strong FY26 performance: Consolidated revenue from operations grew 49.7% to ₹9,358 Cr, while EBITDA more than doubled to ₹2,594 Cr in FY26.

• Growth outlook: Fitch expects OYO’s revenue to grow 9–14% annually in FY27–28, supported by higher-margin premium offerings, improving scale and the scalability of its technology platform.

• IPO could accelerate deleveraging: Fitch has not factored potential IPO proceeds into its rating case. If completed, up to ₹4,990 Cr could be used to prepay Term Loan B, potentially reducing EBITDA gross and net leverage to below 2.0x and 1.0x, respectively.