OYO's parent company, PRISM, revenue grew by 35% to 2,814 crore rupees in the first quarter of the 2026-2027 fiscal year

Prismatic Company, the parent entity of the hotel chain Oyo and preparing for an IPO, reported consolidated net profit after tax (PAT) of 353 crore rupees for the first quarter ending in June. This figure represents a 17% increase compared to 301 crore rupees the previous year.

According to audited financial statements presented to PTI, the quarterly profit included a deferred tax credit of approximately 244 crore rupees. Furthermore, Prismatic Company's operating revenue increased by 35%, reaching 2,814 crore rupees in the first quarter of the 2026-2027 fiscal year, up from 2,078 crore rupees in the same period last year.

During the same period, the company's Gross Booking Value grew by 30% to nearly 9,600 crore rupees. Growth was observed across all business segments of the company, including hotels and vacation rentals. Specifically, bookings in Prismatic Company's hotel segment grew by 30% year-on-year, while the vacation rental business showed a 28% growth in bookings.

At an extraordinary general meeting of shareholders in early October, Prismatic Company founder Ritesh Agarwal addressed the shareholders. He noted that 'it is inspiring that this momentum continued into the first quarter of FY27.' Agarwal emphasized that the performance in the hotel and vacation rental segments indicates improved gross margins and higher operating income, despite investments in brand expansion and strengthening customer demand.

He added that the company continues to grow its business while generating healthy operating income. According to him, the company sees benefits from investments made in technology, brands, and distribution capabilities over the past years, while continuing to invest actively. Agarwal also highlighted the company's geographically diversified business, noting that North America remains a key market following the acquisition of G6 Hospitality. He stated that only G6 provided a Gross Booking Value of approximately 14,000 crore rupees during the 2026 fiscal year.

4Sight Holdings reported a revenue increase of 29.3% for the first six months ending in August. However, much of this growth was driven by low-margin software reselling, while profit increased significantly slower.

According to the interim results published by the technology group, which is listed on the JSE, revenue reached R748.3 million from R578.7 million. Gross profit increased by only 2.2%, amounting to R259.6 million, and gross margin fell from 43.9% to 34.7%. The company attributed this to a 'significant increase in SaaS (Software as a Service) revenue' with lower margins.

Operating profit grew by 11.8%, reaching R53.9 million, as operating expenses remained unchanged at R205.1 million. Earnings per share rose by 10.9%, totaling 7.49 cents, which is significantly less than the 46% growth declared by 4Sight for the year ending in February.

Channel Partner Cluster

The main growth was provided by the channel partner cluster, which distributes software from Microsoft, Sage, and others through a network of resellers. This cluster's revenue jumped by 68%, reaching R365.7 million, but its operating profit remained flat at R21.6 million (R21.9 million in 2025). This is because the cluster 'absorbed the effect of a larger share of low-margin SaaS revenue and competitive conditions in the reseller market.'

Overall for the group, SaaS revenue increased by 51%, reaching R491.3 million, while software license revenue dropped by 36%, amounting to R25 million.

Other clusters showed mixed results. The operating profit of the cluster dealing with data services, artificial intelligence, and automation for 4Sight grew by 59% to R18.2 million. The company linked this to projects transitioning into larger multi-stage programs.

The IT cluster, which handles the sale and support of business applications such as ERP and payroll systems, increased operating profit by 3% to R23.5 million with slightly reduced revenue. In the operational technology cluster serving mining and industrial enterprises, operating profit decreased by 17% to R16.9 million due to margin pressure in the mining industry and weak orders in the previous fiscal year; however, 4Sight noted that its order book has since strengthened.

The loss in the general services cluster decreased from R28.3 million to R26.3 million. 4Sight explained this as 'organizational optimization and the implementation of AI-based automation technologies.'

Situation in Africa

Revenue from South Africa increased by 59%, reaching R584.7 million, while revenue from the rest of Africa decreased by 28.5% to R128.2 million.

Cash generated from operations decreased from R38.5 million to R32.4 million. Accounts receivable grew by 65%, reaching R269.8 million between February and August, outpacing revenue growth, although accounts payable also rose by 45% due to increased reselling volumes. The cash balance decreased by 3.5% to R108 million after 4Sight paid its final dividend and tranche under the acquisition agreement for X4 Solutions and XFour Technology.

In its report, the company focuses primarily on 'superintelligence,' which it calls the group's 'next strategic horizon,' while acknowledging that it 'remains a hypothetical future possibility.'