Stories
Moodys Revises OYO Parent Prism Outlook to Positive Amid Strong Earnings
N
News18•18-10-2026, 15:15
Moodys Revises OYO Parent Prism Outlook to Positive Amid Strong Earnings
- •Moodys Ratings has changed the outlook for IPO-bound OYO parent Prism from stable to positive while reaffirming its B2 corporate family rating.
- •The positive outlook is driven by expectations that OYO will sustain stronger earnings and free cash flow generation over the next 12 to 18 months.
- •OYO aims to raise approximately Rs 6,650 crore through an initial public offering, with a significant portion intended for debt repayment.
- •The company reported more than doubled EBITDA for FY26 and generated positive free cash flow for the first time in several years.
Key Questions Answered
Moody's revised the outlook to positive to reflect expectations that OYO will sustain stronger earnings and free cash flow generation over the next 12-18 months, which will support further deleveraging while maintaining very good liquidity.
OYO plans to raise approximately Rs 6,650 crore through its initial public offering via a fresh issue of shares, with around Rs 5,000 crore designated to repay existing debt.
OYO was founded in 2013 by Ritesh Agarwal, who holds a 30.52 percent stake in the company. The largest shareholder is SVF India Holdings (Cayman) Limited, a subsidiary of SoftBank Group Corp, with a 40.04 percent stake.
