Rentomojo's shares rose sharply by over 10% on October 6, 2026, as investors responded positively to the company's first quarterly earnings report for fiscal year 2027. Despite a 39% year-on-year decline in net profit, the company demonstrated strong revenue growth and improved operating profits, which helped boost investor confidence.
- Rentomojo's net profit after tax fell 39% year-on-year to ₹8 crore in Q1 FY27.
- Normalized profit, excluding one-time fire incident costs, increased 72% to ₹22 crore.
- Revenue from core operations grew 51% year-on-year to ₹126 crore.
- Operating profit (EBITDA) rose 53.5% to ₹51 crore with a margin improvement to 40.76%.
- Subscriber base grew 45.8% year-on-year, supporting strong business momentum.
Why Did Rentomojo Shares Surge Despite Profit Decline?
Rentomojo's consolidated net profit after tax (PAT) dropped nearly 39% year-on-year to ₹8 crore in the first quarter of FY27, compared to ₹13 crore in the same period last year. This decline was mainly due to a one-time financial impact of ₹11.36 crore caused by a fire incident at the company's warehouse in Noida, Uttar Pradesh.
However, when excluding this exceptional expense, the company's normalized profit before exceptional items increased by 72% to around ₹22 crore. Investors focused on this strong underlying profit growth and the company's expanding revenue and operating profits, which led to the stock's rally.
How Did Revenue and Operating Profits Perform?
Rentomojo's revenue from core operations surged 51% year-on-year to ₹126 crore in Q1 FY27, up from ₹84 crore in the same quarter last year. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) increased 53.5% to ₹51 crore, compared to ₹34 crore a year earlier.
The EBITDA margin improved slightly by 64 basis points, reaching 40.76% from 40.12% in the previous year. This indicates better operational efficiency and profitability despite the challenges faced.
What Did the Company’s Leadership Say About the Performance?
Geetansh Bamania, CEO, MD, and Chairperson of Rentomojo, highlighted the strong start to FY27, noting a 45.8% year-on-year increase in subscribers and a 51.1% rise in revenues. He emphasized the quality of growth, driven by strong repeat customer behavior, high organic demand, and healthy internal cash generation.
Bamania also mentioned that the recent IPO has strengthened the company's net worth and increased its capacity to fund future growth, providing greater balance sheet flexibility as the company scales.
How Has Rentomojo’s Stock Performed Since Its IPO?
Rentomojo shares were listed on the National Stock Exchange (NSE) on September 17, 2026, at a 19.42% premium. Since the IPO, the stock has delivered over 39% returns to primary investors compared to the issue price of ₹404 per share.
As of October 6, 2026, the stock traded at an intraday high of ₹562.60 and was 7.9% higher at ₹552.10 during morning trading hours. The company’s market capitalization stood at ₹5,778 crore on that day.
The stock has shown consistent growth, rising 10% over the last five market sessions, reflecting strong investor interest and confidence in Rentomojo's business model and growth prospects.
What Are the Future Outlook and Expectations?
Following the earnings announcement, Rentomojo’s management expects the positive momentum to continue, supported by increasing demand for rental products and a growing subscriber base. The company aims to leverage its strengthened financial position and operational improvements to sustain growth in the coming quarters.
