Rentomojo Shares Jump Over 6% as Normalised Profit and Revenue Surge in Maiden Q1 Results

Shares of Rentomojo Ltd climbed over 6% in Tuesday morning trade following the announcement of its maiden financial results as a publicly listed entity. The Bengaluru-based furniture and appliance rental platform reported robust topline expansion and operating momentum for the first quarter of financial year 2026-27 (Q1 FY27), driving positive sentiment on Dalal Street.

The stock opened 2% higher at ₹521.40 on the National Stock Exchange (NSE) and advanced to an intraday high of ₹543.20, marking an increase of 6.3% from its previous close.

Strong Topline and Operational Momentum

Rentomojo delivered consolidated revenue from operations of ₹1,263 million (₹126.3 crore) for the quarter ended June 30, 2026, registering an increase of 51.1% compared to ₹836 million reported in Q1 FY26.

Operational traction remained solid during the period:

• Items ordered by subscribers expanded by 45.8% year-on-year.
• Demand was anchored by strong customer retention, repeat rental transactions, and high organic discovery.
• The company reported that growth continued to be supported by healthy internal cash generation and disciplined working capital.

Profitability and Exceptional Adjustments

On a headline basis, Rentomojo's profit after tax (PAT) slipped 38.6% year-on-year to ₹78 million (approximately ₹7.8 crore), compared to ₹128 million recorded in the corresponding quarter of the previous financial year.

However, company management highlighted that the reported figures were impacted by one-off items. Excluding the impact of fire losses, other income, and the deferred tax asset (DTA) base effect absent in Q1 FY26:

• Normalised PAT increased 71.8% year-on-year and 11.2% quarter-on-quarter.
• Reported Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reached ₹409 million, up 17.5% year-on-year.
• Normalised EBITDA surged 50.2% year-on-year, maintaining a healthy margin of approximately 41%.

Post-Listing Balance Sheet Strength

This earnings update marks the company's first quarterly disclosure following its initial public offering (IPO) and subsequent listing on September 17, 2026. The ₹1,256-crore IPO had generated heavy investor appetite, getting subscribed 72.88 times before listing at a premium of over 19% over its issue price of ₹404 per share.

Rentomojo management noted that proceeds from the primary issue have strengthened the firm’s net worth and enhanced balance sheet flexibility to finance expansion while keeping capital efficiency intact. In FY26, the company generated ₹1,729 million in operating cash flow, translating to an EBITDA-to-cash conversion ratio of 1.05x, which enabled it to self-fund operational capital expenditures.

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