OYO recently informed its employees that its adjusted EBITDA is expected to be more than triple to Rs 185 crore in the second half of FY23. In the first half of FY23, the IPO-bound hospitality chain reported an adjusted EBITDA of Rs 63 Crore.

According to media reports, the expected increase in adjusted EBITDA can be attributed to cost reductions, hotel business growth, and continued operational profitability. During a recent townhall meeting, Oravel Stays, the parent company of hospitality chain OYO, told its employees that it is likely to be EBITDA positive for the first time in the current fiscal year FY23.

The reports further added that in a presentation, the IPO-bound startup stated that its adjusted EBITDA is expected to triple to Rs 185 crore in the second half of FY23 compared to the first half of the fiscal.

According to the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the traveltech startup's adjusted EBITDA in the first half of FY23 was Rs 63 crore.

According to the company, the expected increase in adjusted EBITDA can be attributed to cost reductions driven by operational efficiencies, growth in the hotel business, and continued operational profitability.

OYO also informed employees that it expects revenue to increase 15% year on year to Rs 2,800 core during the October-March 2022-23 period. However, gross profit margins are expected to remain consistent at around 41% in FY23.

OYO recently stated that it would resubmit its DRHP to SEBI by the middle of February 2023. The company previously stated that the process of revising the comprehensive document could take up to 2-3 months.

OYO's most recent SEBI submission was the updated financial results for the first half of FY23. Following that, the markets regulator requested that the startup resubmit the DRHP, updating all relevant sections such as risk factors, KPIs, outstanding litigations, and basis for offer, among others.

OYO was founded in 2013 by Ritesh Agarwal and is backed by notable investors including Masayoshi Son's SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, and Hero Enterprises.

OYO reported a loss of Rs 333 crore in Q2 FY23, a decrease of nearly 20 per cent from Rs 414 crore in Q1 FY23. Its loss also shrank by 22.2 per cent to Rs 747.1 crore in the first half of FY23, down from Rs 959.8 crore in the same period the previous fiscal year.