OYO unlisted shares, currently trading at around ₹24 per share in the unlisted market, have received a positive update as Fitch Ratings has revised OYO’s credit outlook from Stable to Positive, while maintaining its existing credit rating. The revision reflects an improving credit profile, supported by deleveraging, EBITDA growth, positive free cash flow and a more conservative capital structure. Importantly, Fitch has not upgraded OYO’s credit rating at this stage; it has changed the outlook, indicating that the company’s improving financial performance could support a potential rating upgrade in the future if it continues to meet Fitch’s expectations.

What is Fitch Expecting from OYO?

Fitch expects OYO’s revenue to grow by around 9–14% in FY27–FY28 and expects EBITDA leverage to decline from 5.2x in FY26 to around 3.8x by FY28. This indicates that Fitch expects OYO’s earnings to grow while its debt burden relative to EBITDA continues to decline. Another important factor is that Fitch’s assessment does not factor in the proceeds from OYO’s proposed ₹6,650 crore IPO, of which around 77% is planned to be used for debt repayment. If the IPO is completed as proposed and the proceeds are used for repayment, it could further reduce OYO’s debt burden and strengthen its balance sheet.

OYO’s 9M FY26 Numbers Highlight the Pivot

OYO’s 9M FY26 numbers also highlight the company’s ongoing business pivot. The company reported revenue of around ₹6,940 crore, compared with ₹6,252 crore in FY25, representing approximately 11% year-on-year growth. However, the growth has not been evenly distributed across geographies. India, traditionally OYO’s largest market, reported a 10% decline in revenue, while the United Kingdom declined 38% and Europe declined 1%. In contrast, the United States reported 51% growth. Based on the reported numbers, the US appears to have contributed roughly 13 percentage points of growth to OYO’s consolidated revenue growth, while weakness across India, the UK and Europe offset part of that contribution. This highlights how important the US has become to OYO’s overall growth story.

US GBV Shows the Scale of the Shift

The shift becomes even more visible when looking at Gross Booking Value (GBV). OYO’s US GBV increased from approximately ₹972 crore in FY24 to around ₹12,023 crore in 9M FY26, while US revenue increased from around ₹827 crore to ₹1,879 crore during the same period. As a result, the United States now accounts for roughly 52% of OYO’s global GBV, compared with only around 9% in FY24. The sharp increase shows how significantly OYO’s geographic mix has changed, with the US emerging as a major contributor to the company’s global booking platform.

What Does the Positive Outlook Mean for OYO Unlisted Shareholders?

For OYO unlisted shareholders, the positive outlook comes as the company improves cash flow, EBITDA and leverage. If OYO completes its proposed ₹6,650 crore IPO, with around 77% of proceeds planned for debt repayment, it could further strengthen the balance sheet and reduce debt.