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  3. OYO – Fitch Revises Outlook to Positive on Potential Deleveraging

OYO – Fitch Revises Outlook to Positive on Potential Deleveraging

29 Sept 2026

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Key Takeaways

  • Fitch’s positive outlook reflects improving profitability and the potential for lower leverage at PRISM. The key monitorables are sustained EBITDA growth, execution of the planned IPO and deployment of IPO proceeds toward debt reduction, which could materially strengthen the company’s balance sheet.

  • Fitch’s positive outlook reflects improving profitability and the potential for lower leverage at PRISM. The key monitorables are sustained EBITDA growth, execution of the planned IPO and deployment of IPO proceeds toward debt reduction, which could materially strengthen the company’s balance sheet.

oyo unlisted shares

Oravel Stays (OYO Rooms)

DRHP filed1.56%

Expert Analysis

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.

Publisher:Business Standard