Fitch revises Oyo parent's outlook to positive, sees potential deleveraging

•Fitch Ratings revised Oyo parent Oravel Stays' outlook to 'positive' from 'stable', driven by expected EBITDA growth and deleveraging.

•Prism, the parent entity, reported a four-fold rise in net profit to ₹994 crore in 2025-26, with consolidated revenue increasing 49.7% to ₹9,358 crore.

•Fitch expects Oyo's revenue to rise 9-14% in FY27-28, with EBITDA margin and scale improving due to its technology platform and competitive cost basis in India.

•Oyo plans to use up to ₹4,990 crore from its IPO to prepay a term loan, reducing EBITDA gross and net leverage to below 2.0x and 1.0x, respectively.