Rentomojo’s Q2 FY27 revenue grew 52.8% YoY to ₹142.1 Cr, while PAT declined 62.6% to ₹18.2 Cr
Growth in subscribers and inventory, coupled with 85.9% average occupancy, highlights sustained demand and improving utilisation of Rentomojo’s rental assets
Rentomojo said its FY17 inventory cohort generated cumulative revenue of 5.3X its original value, while 54% of the cohort continues to generate revenue
Recently listed furniture rental company RentoMojo reported a 62.6% year-on-year (YoY) decline in its profit after tax to ₹18.2 Cr in the quarter ended September 30, 2026 (Q2 FY27) from ₹48.6 Cr in the year-ago quarter.
The decline was largely due to a deferred tax credit of ₹32.8 Cr recognised in the year-ago quarter, compared with a deferred tax expense of ₹6.2 Cr in Q2 FY27.
On a sequential basis, the company’s net consolidated profit zoomed 133% from ₹7.8 Cr in the previous quarter.
Meanwhile, operating revenue grew 52.8% YoY and 12% QoQ to ₹142.1 Cr in the quarter under review, driven by growth in customer orders, live subscribers and rental inventory. Including other income of ₹1.7 Cr, total income for the quarter stood at ₹143.8 Cr.
Total expenses increased 53.2% YoY to ₹119.8 Cr in Q2 FY27 from ₹78.2 Cr in the year-ago period. Employee benefit expenses rose 38.3% to ₹19.5 Cr, while finance costs increased 46.7% to ₹9 Cr.
The company said its normalised profit after tax, excluding exceptional items and deferred tax adjustments, increased 52.2% YoY to ₹24 Cr from ₹15.8 Cr in Q2 FY26. Normalised EBITDA also grew 52.7% to ₹58.8 Cr from ₹38.5 Cr a year earlier.
Subscriber Additions, Higher Utilisation Drive Growth
Rentomojo expanded its omnichannel network to 96 experience stores across 14 cities by the end of September, compared with 67 stores a year earlier.
Customers ordered 3.8 Lakh gross items during the quarter, up 45% higher than last year’s quarter. Besides, the company’s live subscriber base grew 42.5% to approximately 3.2 Lakh, while live item inventory increased 44% to 10.5 Lakh.
Average occupancy grew by 61 basis points to 85.9% while average revenue per item (ARPI) increased 4.6% YoY to ₹1,650.
The company also reported higher asset utilisation. Assets procured in the FY17 cycle generated cumulative revenue equivalent to 5.3X its original value, with around 54% of the cohort continuing to generate revenue. The FY18 cohort had generated 4.71X its original value, with 59.2% of its items still generating revenue.
For context, higher utilisation of its rental assets allows the company to generate repeat revenue from its asset base. Purchase displaced, which measures the estimated retail value of consumer purchases replaced by customers choosing to rent furniture, grew 61% YoY and 8% QoQ to ₹446.9 Cr.
This was the company’s second quarterly results following its public market debut in September after it raised ₹1,255.6 Cr from an initial public offering.
The company said it had utilised ₹90 Cr, or 63.7%, of the ₹141.4 Cr net proceeds allocated to the IPO’s stated objectives as of September 30. This included the complete utilisation of ₹70 Cr earmarked for debt repayment, ₹8.1 Cr towards warehouse and experience store lease rentals, and ₹11.9 Cr for general corporate purposes.
Commenting on the performance, founder, chairperson, managing director and CEO Geetansh Bamania said the company would continue focusing on subscriber growth, better asset utilisation and technology while maintaining profitability, cash generation and returns on capital.
Shares of Rentomojo ended today’s trading session 3.30% higher at ₹610.9 apiece on the BSE.