Rentomojo Q1 Profit Falls 39% as Revenue Jumps 51%

Rentomojo reported a sharp 51.1% year-on-year increase in revenue from operations to ₹126.3 crore for the first quarter of FY27, but its reported net profit fell 38.6% to ₹7.8 crore from ₹12.8 crore a year earlier. The result is the furniture and appliance rental platform’s first quarterly earnings report since its stock-market listing in September 2026.

The headline profit decline, however, does not fully capture the company’s underlying operating performance. Rentomojo said one-time impacts during the quarter, including a fire-related loss at a warehouse, other income effects and a deferred-tax impact, weighed on reported earnings. On a normalised basis, the company said profit after tax increased 71.8% year-on-year to ₹21.9 crore, while normalised EBITDA rose 50.2% to ₹52.3 crore.

Key takeaways

• Revenue from operations rose 51.1% YoY to ₹126.3 crore.
• Reported PAT declined 38.6% to ₹7.8 crore.
• Normalised PAT increased 71.8% to ₹21.9 crore.
• Normalised EBITDA rose 50.2% to ₹52.3 crore.
• Items ordered by subscribers increased 45.8% to 3,29,159.
• Live subscribers grew 36.3% to 2,83,058.
• Live items increased 41% to 9,22,631.
• A warehouse fire created a one-time financial impact of about ₹11.36 crore.
• The company maintained a normalised EBITDA margin of roughly 41%.

Rentomojo Q1 FY27 results: Revenue growth remains strong

Rentomojo’s June-quarter performance shows that demand for its rental and subscription model continued to expand rapidly.

Revenue from operations increased to ₹126.3 crore in Q1 FY27 from ₹83.6 crore in Q1 FY26, representing growth of 51.1%. Revenue was also up about 15.3% sequentially from ₹109.5 crore in the March quarter.

The company attributed the growth primarily to an increase in live items available on its platform and higher ordering activity among subscribers.

Rentomojo operates a technology-driven rental and subscription model through which customers can access furniture, appliances and other household products without purchasing them outright. The model is particularly relevant to consumers who value flexibility, including renters, young professionals and customers who relocate frequently.

The latest numbers suggest that the company is still adding demand while increasing the scale of its asset base.

Why did Rentomojo’s profit fall despite revenue growth?

The apparent contradiction between 51.1% revenue growth and a 38.6% fall in reported PAT is largely explained by one-time items.

Rentomojo reported a one-time financial impact of approximately ₹11.36 crore during the quarter after a fire at one of its warehouses in Noida. The incident damaged the warehouse and property and equipment stored there.

Because the expense affected the reported financial result, it reduced the profit that investors see in the headline PAT figure.

The company therefore presented normalised financial measures to show what it considers a better representation of the underlying business performance.

Normalised PAT rose 71.8% year-on-year to ₹21.9 crore, compared with ₹12.8 crore in Q1 FY26. Normalised PAT was also up 11.2% sequentially from ₹19.7 crore in Q4 FY26.

This distinction is important because the reported ₹7.8 crore profit should not be interpreted as evidence that Rentomojo’s core operations suddenly became less profitable.

At the same time, normalised figures are company-defined adjustments and should not replace reported accounting results. Investors therefore need to look at both measures.

Operating performance tells a different story

The stronger picture becomes clearer when Rentomojo’s operating metrics are examined.

Items ordered by subscribers increased 45.8% year-on-year to 3,29,159 in Q1 FY27. Live subscribers increased 36.3% to 2,83,058, while live items on the platform rose 41% to 9,22,631.

These numbers indicate that growth was not simply the result of charging existing customers more. The company expanded its subscriber base and the number of rental items generating revenue.

Average revenue per item also increased 6.8% year-on-year to ₹1,662.6.

That combination matters for a rental business because revenue depends on several variables: the number of customers, the number of products deployed, utilisation or occupancy, pricing and the ability to retain customers.

Rentomojo’s latest figures show improvement across several of these drivers simultaneously.

Rentomojo Q1 FY27 operating snapshot

Metric	Q1 FY26	Q1 FY27	YoY change
Revenue from operations	₹83.6 crore	₹126.3 crore	+51.1%
Reported PAT	₹12.8 crore	₹7.8 crore	-38.6%
Normalised PAT	₹12.8 crore	₹21.9 crore	+71.8%
Normalised EBITDA	₹34.8 crore	₹52.3 crore	+50.2%
Items ordered	—	3,29,159	+45.8%
Live subscribers	—	2,83,058	+36.3%
Live items	—	9,22,631	+41%
Average revenue/item	—	₹1,662.6	+6.8%

Figures are based on Rentomojo’s Q1 FY27 investor presentation and reported financial results.

EBITDA growth shows the underlying strength

Rentomojo’s EBITDA performance also needs to be viewed through the reported-versus-normalised distinction.

Reported EBITDA increased 17.5% year-on-year to ₹40.9 crore, according to the company’s investor presentation. However, after excluding the specified one-time effects, normalised EBITDA increased 50.2% to ₹52.3 crore.

The normalised EBITDA margin was approximately 41%, broadly in line with the previous year’s level.

This is significant because revenue growth without operating leverage would be less compelling. Rentomojo has managed to grow its revenue while maintaining a relatively high operating margin on a normalised basis.

The company’s presentation showed normalised EBIT of ₹29.3 crore, up 50.8% year-on-year, while normalised return on equity increased to 28.8%.

The figures suggest that the business has continued to generate operating leverage even as it scales.

Occupancy remains an important metric

For a rental company, revenue alone does not tell the full story.

A rental platform must purchase or otherwise acquire assets, place them with customers and keep those assets generating revenue for as much of their useful life as possible. Higher utilisation can therefore improve the economics of the model.

Rentomojo reported average occupancy of 85.7% during Q1 FY27. Occupancy at the end of the quarter was 86.8%, compared with 84.5% at the end of the previous quarter.

The increase indicates that a larger proportion of the company’s deployed inventory was earning rental revenue.

Purchase displacement, another metric used by Rentomojo, increased 51.6% year-on-year to ₹413.7 crore. The measure represents the estimated value of purchases replaced by the company’s rental model.

This provides a broader indication of the value proposition behind the business: customers are using rental products instead of purchasing the underlying items outright.

Rentomojo’s rental model is becoming more scalable

The central challenge for a rental business is balancing growth with capital efficiency.

Unlike a conventional marketplace that primarily connects buyers and sellers, Rentomojo operates a more asset-intensive model. It must acquire, maintain, refurbish, deliver and relocate products while keeping those assets productive.

That makes occupancy, asset utilisation and cash generation particularly important.

Rentomojo said its FY26 cash flow from operations stood at ₹172.9 crore and that its EBITDA-to-cash-flow-from-operations conversion was 1.05 times. The company also said its operating cash flow fully funded its growth capital expenditure during FY26.

The company has also recently strengthened its balance sheet through its initial public offering.

For Rentomojo, this creates an opportunity to increase its inventory and geographic reach without relying entirely on external financing.

However, faster expansion can also increase depreciation, financing costs, logistics expenses and refurbishment requirements. Maintaining profitability as the company scales will therefore remain an important test.

First earnings report after Rentomojo IPO

The Q1 results come less than a month after Rentomojo’s stock-market debut.

The company’s shares were listed on September 17 at ₹482.45 on the NSE, compared with the IPO issue price of ₹404. That represented a listing premium of about 19.4%.

The IPO itself attracted substantial investor demand, with total subscription reported at roughly 73 times the shares offered.

The Q1 earnings therefore give public-market investors their first opportunity to assess the company’s financial performance as a listed business.

The market response was initially positive despite the reported PAT decline. Rentomojo shares rose sharply during October 6 trading, with market coverage attributing the move largely to the strong revenue growth and the company’s normalised earnings performance.

That reaction highlights how investors are looking beyond the headline PAT number and examining the reason behind the decline.

Still, one strong quarter does not establish a long-term trend. Future results will show whether Rentomojo can maintain its growth rate without sacrificing occupancy, margins or cash generation.

What Rentomojo’s Q1 results mean for the rental market

Rentomojo’s results are also relevant to the broader growth of India’s rental economy.

Ownership has traditionally dominated categories such as furniture and appliances. But high urban mobility, rising housing costs, smaller living spaces and changing consumer preferences have created room for subscription and rental models.

For consumers, renting can reduce the upfront cost of furnishing a home. It can also provide flexibility when customers expect to move cities or change their housing arrangements.

For the company, however, the economics depend on whether each asset can generate enough rental income over its useful life to cover acquisition, maintenance, depreciation, logistics and financing costs.

That is why Rentomojo’s occupancy and average revenue per item are arguably as important as its headline revenue growth.

The Q1 numbers are encouraging on those measures, but the business still needs to demonstrate that strong growth can persist at a larger scale.

One-time losses should not be ignored

Although the warehouse fire was a one-time event, it remains relevant from a business-risk perspective.

Rentomojo’s model involves physical inventory spread across warehouses and customer locations. Damage to inventory can therefore have a direct financial impact.

The company has characterised the Q1 impact as one-time, but investors will continue to monitor whether insurance recoveries, asset replacement and operational disruption create any additional effects in subsequent quarters.

The incident also illustrates a broader point about asset-heavy technology businesses. Calling a company “technology-led” does not eliminate the operational risks associated with physical assets.

Rentomojo’s technology can improve customer acquisition, subscription management, inventory utilisation and logistics, but warehouses, furniture and appliances remain physical assets that must be managed.

What investors will watch next

The next few quarters will be important in determining whether Rentomojo’s Q1 performance represents a sustainable growth trajectory.

The first metric to watch will be subscriber growth. A continued increase in subscribers would indicate that the company’s addressable customer base is expanding rather than revenue being driven primarily by higher pricing.

Second, investors will watch occupancy. Sustained occupancy in the mid-80% range or higher would support better asset productivity.

Third, normalised EBITDA margins will be important. Rentomojo has indicated that it wants to maintain a margin of around 41%. Maintaining that level while expanding would demonstrate operating discipline.

Finally, cash flow will matter. Rental businesses can report accounting profits while requiring substantial capital to acquire inventory. Rentomojo’s ability to fund expansion from internal cash generation would therefore strengthen the quality of its growth.