Rentomojo Ltd witnessed a significant surge in its stock price, with shares climbing over 10% in Tuesday's trading. This rally followed the announcement of the company's robust financial results for the quarter ended June 30, 2026 (Q1 FY27), showcasing substantial growth in both revenue and profitability.
Robust Revenue and Profitability Gains
The furniture and appliance rental platform reported a 51.1% year-on-year (YoY) increase in revenue from operations, reaching Rs 126.3 crore. This impressive top-line growth was mirrored in its profitability metrics, with normalised EBITDA rising 50.2% YoY to Rs 52.3 crore. Furthermore, normalised profit after tax (PAT) saw an even sharper increase of 71.8% YoY, settling at Rs 21.9 crore.
The company highlighted that while reported profitability figures were affected by one-time adjustments, the normalised numbers provide a clearer picture of Rentomojo's strong underlying operational performance. Normalised EBITDA margin stood at a healthy 41.1%, and the normalised PAT margin reached 17.3%.
Key Growth Drivers
Rentomojo attributed its revenue expansion to a significant increase in both the number of 'live items' and 'items ordered' by its subscriber base. Items ordered by subscribers grew 45.8% YoY to 3.29 lakh, while the total live items available for rental expanded 41% to 9.23 lakh. The company's live subscriber count also saw a healthy rise of 36.3% YoY, reaching 2.83 lakh.
Efficiency improvements were also evident, with the average revenue per item increasing by 6.8% YoY to Rs 1,662.6. The company's rental model also showed strong market penetration, with 'purchase displaced' value—representing purchases replaced by rentals—increasing 51.6% YoY to Rs 413.7 crore. Average occupancy rates improved by 234 basis points YoY to 85.7%.
CEO Comments and Future Outlook
Commenting on the performance, Geetansh Bamania, Co-founder, Chairperson, Managing Director, and CEO of Rentomojo, expressed confidence in the company's trajectory. “Our first quarterly results as a listed company mark an important milestone for Rentomojo and reflect the strength of our underlying business,” Bamania stated. He emphasized the quality of growth, pointing to strong repeat customer behavior, high organic demand, and healthy internal cash generation.
The company's recent Initial Public Offering (IPO) has also bolstered its net worth, enhancing its capacity to fund future growth initiatives. Rentomojo aims to evolve into a leading technology-driven platform for flexible living, maintaining a strategic focus on profitability and capital efficiency as it scales operations.