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The agency expects EBITDA leverage to decline to 3.8x by FY28 from 5.2x at the end of FY26, even without factoring in proceeds from the company’s proposed IPO. Fitch highlighted PRISM’s operating momentum, including 50% revenue growth in FY26, and expects the company to maintain its growth trajectory. “We expect Oyo's revenue to rise by 9%-14% in FY27-28 after growing by 50% in FY26,” said the Fitch report. The ratings agency also highlighted the improvement in PRISM’s cash generation, noting that the company turned free cash flow positive in FY26. Fitch expects PRISM to maintain positive free cash flow over the next two to three years, supported by its growing EBITDA base and the relatively low capital expenditure requirements of its asset-light business model. Fitch also pointed to PRISM’s expansion in developed markets following the acquisitions of G6 Hospitality in the US and CheckMyGuest in Europe. The agency estimates that G6 and PRISM’s Homes business together contributed close to 40% of the company’s revenue in FY26. According to Fitch, the integration of G6 Hospitality and CheckMyGuest increased Oyo's EBITDA from the developed US and Europe markets and it estimates G6 and the Homes business segment contributed close to 40% of total revenue in FY26. Fitch’s base case does not factor in proceeds from PRISM’s proposed IPO. The company has proposed using up to Rs 49.9 billion (approximately Rs 4,990 crore) from the IPO proceeds towards repayment of its Term Loan B. Fitch said that such a repayment could bring PRISM’s gross EBITDA leverage below 2.0x and net leverage below 1.0x, representing a significant reduction in indebtedness. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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