The unlisted share price for Oravel Stays Ltd., owner of OYO Rooms, has increased by about 26% in the month, which is much more than a lot of other companies in the industry. According to speculation, OYO is poised to submit a Revised Draft Red Herring Prospectus (DRHP) in November 2025.
Key triggers:
- Strong Q1 FY26 numbers: Revenue in Q1 increased approximately 47% year over year to approximately Rs 2,019 crore. Profit after tax (PAT) nearly doubled from Rs 87 crore to Rs 200 crore.
- Bonus share announcement: The company is planning to distribute a 1:1 bonus issue share with a record date of 30 September 2025.
- Surge in gross booking value: GBV increased approximately 144% year over year to Rs 7,227 crore.
- IPO buzz: Improved sentiment + anticipation of listing value.
Comparison: OYO vs Listed Hospitality Peers
Let’s take a look at the others from the same segment.
- Lemon Tree Hotels: +21% in one month
- Chalet Hotels: +17%
- EIH: 9%
- Indian Hotels Company Limited (IHCL): 4%
- Nifty India Tourism index: 2%
OYO seems to be the only company with accelerating momentum while its rivals stay stagnant.
Risks / Margin Weakness
- Valuation stretch: OYO trades at Rs 53 per share in the unlisted market, edges closer to the OYO clocking proprietary EBITDA of 150-160x, which is far higher than the peer average.
- Weak margins: OYO’s 6.6% PAT margins are incredibly low when set against the 15-20% margins of the hospitality chains.
- Segment disparity: The Homes business is growing at 16%, which is below the 221% growth rate of the primary Hotels business, leading to disparity in growth.
- IPO uncertainty: OYO has delayed its IPO multiple times due to SoftBank’s reservations. Any fresh delay or a lower than expected valuation could dent sentiment.
Is It Time to Buy Unlisted OYO Shares?
Reasons to Buy Now
- If you believe the growth already seen in Q1 is sustainable (particularly the Hotels vertical, margin extension, and cost discipline).
- If you believe the IPO will occur in the near term (speculated for November 2025), and the valuation will reward growth.
- If you are willing to forgo liquidity and accept the unlisted shares risk for potentially much higher returns than the listed counterparts.
Reasons to Wait / Be Cautious
- If the valuations appear to be outrageous (paying 150-160× earnings), there is little margin for error.
- If you are sceptical about margin extension or worry that Homes and other segments may hurt overall profitability.
- If you are risk-averse and prefer exposure only once OYO is listed (transparent pricing, better liquidity).
- Any sudden change in the economy or regulation, or a change in the need for hotels through demand, inflation, or cost of credit, could remove those gains quickly.
Wrapping Up
Oyo Unlisted Shares have enjoyed increased profitability due to a bonus issue and an expected IPO in 2025. For those investors willing to take on the most risk, this could be an opportunity to capitalise on unlisted stocks prior to the inevitable listing gains. With the company’s substantial unlisted stock valuations, there is also a lack of liquidity, and the listing is currently delayed. These factors also bring added uncertainty.
The unlisted market space often rewards those who bet early; however, those who miscalculate get adverse outcomes. With the OYO IPO on the line may prove to be a more ideal selection for less risk. However, OYO remains a high-risk, high-reward story best suited for aggressive portfolios rather than conservative ones.