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Oyo Targets Adjusted Ebitda Of Rs 800 Crore In 2023–24

Oyo Town Hall presentation, which BQ Prime has sourced, shows CEO Ritesh Agarwal exuding confidence in delivering on its target.

<div class="paragraphs"><p>An Oyo property. (Source: Company)</p></div>
An Oyo property. (Source: Company)

Oravel Stays Ltd., which operates Oyo, is looking to clock about Rs 800 crore in adjusted Ebitda for the current fiscal, according to Chief Executive Officer Ritesh Agarwal.

"The Q1 adjusted Ebitda is nearly [the] same as what we achieved in Q4 last year, which is seasonally the strongest quarter," Agarwal told employees during a town hall presentation on Monday.

The snippets of the presentation, which BQ Prime has sourced, show that Oyo has reported an adjusted Ebitda of Rs 175 crore in the first quarter.

Oyo had reported its maiden Ebitda-positive quarter in an addendum filed with SEBI for its initial public offering, reporting Rs 7 crore adjusted Ebitda in the first quarter of last fiscal. Thereafter, Oyo marked its first full year of Ebitda profitability in fiscal 2023.

"I am confident that we can deliver on our target for this year," Agarwal told employees. "Our cost rationalisation measures in Europe and busy summer months have positively impacted our Ebitda in the first quarter."

"This coupled with our increased focus on customer experience and quality improvement measures will drive our growth this year," the co-founder said.

Oyo is currently in the waiting lane for its IPO approval from the Securities and Exchange Board of India. In March, it had refiled its draft red herring prospectus under the pre-filing route.