Physical properties and first-principles calculations of an altermagnet candidate <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"> <mml:mrow> <mml:msub> <mml:mi>Cs</mml:mi> <mml:mrow> <mml:mn>1</mml:mn> <mml:mo>−</mml:mo> <mml:mi>δ</mml:mi>

We report the crystal growth, structure, physical properties, and first-principles calculations of a vanadium-based oxytelluride Cs$_{1-δ}$V$_2$Te$_2$O. The material possesses two-dimensional V$_2$O square nets sandwiched by tellurium layers, with local crystallographic symmetry satisfying the spin symmetry for a $d$-wave altermagnet. An antiferromagnetic transition at 293 K is unambiguously evidenced from the measurements of magnetic susceptibility and specific heat. In addition, a secondary transition at $\sim$70 K is also observed, possibly associated with a Lifshitz transition. The first-principles calculations indicate robust Néel-type collinear antiferromagnetism in the V$_2$O plane. Consequently, spin splittings show up in momentum space, in relation with the real-space mirror/rotation symmetry. Interestingly, the V-$d_{yz}/d_{xz}$ electrons, which primarily contribute the quasi-one-dimensional Fermi surface, turns out to be fully orbital- and spin-polarized, akin to the case of a half metal. Our work lays a solid foundation on the potential applications utilizing altermagnetic properties in vanadium-based oxychalcogenides.