Moody's Lifts OYO Parent Prism to Positive Outlook Ahead of ₹6,650 Crore IPO

Moody's Ratings revised the outlook on IPO-bound OYO parent Prism to positive from stable, while reaffirming the travel tech unicorn's B2 corporate family rating, BusinessLine reported on October 18, 2026. OYO plans to raise around ₹6,650 crore through an initial public offering, of which around ₹5,000 crore would be used to repay debt.

Moody's Expects OYO EBITDA Near ₹3,000 Crore

"The positive outlook reflects our expectation that OYO (formerly Oravel Stays) will sustain stronger earnings and free cash flow generation over the next 12-18 months, supporting further deleveraging while maintaining very good liquidity," said Sweta Patodia, a Moody's Ratings Assistant Vice President and the lead analyst for OYO.

Moody's said it expects OYO's EBITDA to grow to around ₹3,000 crore ($315 million) over the next 12-18 months as the company continues to scale and add new storefronts to its platform. For FY26, OYO's EBITDA more than doubled to ₹2,630 crore from ₹1,080 crore in FY25. Higher earnings and stabilising working capital outflows also enabled OYO to generate positive free cash flow in FY26 for the first time after several years of cash burn.

Moody's said it expects OYO to sustain positive free cash flow over the next one to two years, with operating cash flow covering near-term outflows, including planned capital expenditure. The rating agency said that if the offering is completed as planned, it would accelerate deleveraging and strengthen the company's credit profile, though its base-case financial forecasts do not incorporate the proceeds or the related debt repayment given uncertainty around the timing and execution of the IPO.

Prism's IPO Filing and Funding History

Prism received regulatory approval from SEBI for its proposed initial public offering in June 2026, according to akta.pro company records. The records show the IPO of up to ₹6,650 crore carries a targeted $7-8 billion valuation, marking OYO's third attempt at a public listing. Prism filed its draft red herring prospectus through a confidential filing in December 2025, planning to raise ₹6,650 crore via a fresh issue after receiving shareholder approval at an Extraordinary General Meeting on December 20, 2025. The same records list 22 funding rounds on file and total funding of $3.7 billion.

Earlier OYO Developments Before the IPO

Prism, OYO's parent, aims to launch its ₹6,650-crore IPO in the current fiscal, with founder Ritesh Agarwal saying pricing will be set before launch, Outlook Business reported in September 2026. The fresh issue has no OFS, with ₹4,987.5 crore for debt repayment and the rest for corporate purposes. In August 2026, NDTV Profit reported that Prism posted net profit of Rs 994 crore in FY2025-26, a four-fold rise from Rs 245 crore, with consolidated revenue up 49.7% to Rs 9,358 crore and Ebitda more than doubling to Rs 2,594 crore.

What Comes Next for the Offering

OYO was founded in 2013 by Ritesh Agarwal, who currently holds a 30.52 per cent stake in the company. SVF India Holdings (Cayman) Limited, a subsidiary of SoftBank Group Corp, is the largest shareholder with a 40.04 per cent stake. Prism aims to launch the IPO in the current fiscal, with pricing to be set before launch.