RentoMojo Reports 53% Revenue Growth, but Profit Falls 63%

RentoMojo, the furniture and appliance rental company that listed on the NSE and BSE in September, reported Q2 FY27 revenue from operations of ₹142 crore on Nov. 11, up 53 percent from ₹93 crore a year earlier. Profit after tax fell 63 percent to ₹18.2 crore, according to Inc42, and the fall is mostly a tax entry from the year-ago quarter.

Entrackr called these the first quarterly results after listing and said they were filed with the NSE in consolidated form. The two outlets differ by ₹0.1 crore on net profit, ₹18.1 crore against ₹18.2 crore, which looks like rounding of the same filing. The Terminal did not retrieve the exchange filing itself.

Why profit fell while revenue rose

Inc42 reported that the year-ago quarter carried a deferred tax credit of ₹32.8 crore, while Q2 FY27 carried a deferred tax expense of ₹6.2 crore. Add that credit to the ₹15.8 crore pre-tax profit Entrackr gives for Q2 FY26 and the sum is ₹48.6 crore, the year-ago profit after tax Inc42 cites. Inc42 puts normalised profit, which strips exceptional and deferred tax items, at ₹24 crore, up 52.2 percent. Entrackr reports pre-tax profit of ₹24.3 crore, up from ₹15.8 crore.

Costs grew as fast as revenue

Total expenses were ₹119.8 crore, up 53.2 percent from ₹78.2 crore, against revenue growth of 52.8 percent. Normalised EBITDA, a measure of operating profit before depreciation, was ₹58.8 crore against ₹38.5 crore. Dividing by revenue gives a margin of about 41 percent in both quarters, so the business scaled without getting more profitable per rupee of rent.

Metric	Q2 FY27	Q2 FY26
Revenue from operations	₹142 crore	₹93 crore
Total expenses	₹119.8 crore	₹78.2 crore
Normalised EBITDA	₹58.8 crore	₹38.5 crore
Profit after tax	₹18.2 crore	₹48.6 crore
Experience stores	96 in 14 cities	67

Employee costs rose 38.3 percent to ₹19.5 crore, slower than revenue. Finance costs rose 46.7 percent to ₹9 crore, according to Inc42.

Growth came from more items, not higher rents

Live item inventory rose 44 percent to 10.5 lakh, and live subscribers rose 42.5 percent to about 3.2 lakh. Average revenue per item, the monthly rent each item earns, rose 4.6 percent to ₹1,650. Occupancy rose 61 basis points to 85.9 percent. Multiply 44 percent more items by 4.6 percent higher revenue per item and the result is close to the 52.8 percent revenue growth, so pricing contributed little.

Gross items ordered rose 45 percent to 3.8 lakh. Inc42 reported that founder, chairperson, managing director and chief executive Geetansh Bamania's company will keep its focus on subscriber growth, better asset utilisation and technology. Neither outlet quotes an executive directly.

What the market is paying

The IPO raised ₹1,256 crore at ₹404 a share, was subscribed 72.87 times and listed in September at a 19 percent premium, Entrackr reported. The stock traded near ₹615 on Nov. 11 for a market capitalisation of about ₹6,459 crore; Inc42 has it closing at ₹610.9 on the BSE, up 3.30 percent.

Market capitalisation is not a post-money valuation, but it allows one comparison. Annualising the quarter's ₹142 crore gives ₹568 crore, which puts the market value at about 11.4 times annualised revenue. At the ₹404 issue price the same arithmetic gives about 7.5 times.

Inc42 lists ₹141.4 crore of net proceeds allocated to the company's listed objectives, of which ₹90 crore, or 63.7 percent, was used by Sept. 30, including ₹70 crore of debt repayment. That is a small share of the ₹1,255.6 crore raised. Neither article says who received the rest; the gap is consistent with an offer for sale by existing shareholders, but the offer document was not retrieved here.

The next datapoint is the Q3 FY27 result for the quarter ending Dec. 31, which will show whether profit after tax tracks the normalised figure once the year-ago tax credit is out of the comparison, and how much of the ₹141.4 crore has been spent. For other Indian filings in the same format, see Greenjoules' Series B and Unacademy's chairman change.