Rentomojo shares surged over 10% during Tuesday's trading session, with the stock jumping 10.1% to touch an intraday high of ₹562.60 on October 6, 2026, compared to ₹510.95 at the previous close. After hitting the day's high, the company's stock retreated some gains, trading 7.9% higher at ₹552.10 during morning market hours, with trading activity surging past 6.7 million equity shares across NSE and BSE. As per Moneycontrol, the shares are now up more than 16% since their listing on September 17, 2026, and more than 39% from the IPO issue price of ₹404. The sharp uptick came after the company declared its June quarter earnings after market hours on Monday, marking its first result since the listing. More than 2 million shares changed hands in the first 30 minutes of trade, demonstrating strong investor interest in the rental platform's operational performance.
According to the latest financial disclosure, Rentomojo delivered mixed financial results for Q1 FY27, with net profit declining 38.6% year-on-year to ₹7.8 crore compared to ₹12.7 crore in the previous year. The company recorded ₹11.36 crore in exceptional costs during the quarter following a fire at its sub-leased warehouse in Noida in June. The incident caused significant damage to the company's warehouse and the property and equipment stored inside, resulting in a one-time total financial impact of ₹11.36 crore in the period under review. On a sequential basis, net profit declined 53% from ₹16.8 crore in Q4 FY26, indicating the impact of both the fire incident and seasonal business patterns. The company has filed an insurance claim related to the losses and is awaiting the insurance surveyor's report and first information report. Additionally, it has received a legal notice from the sub-lessor but has assessed that there is no liability arising from its contractual obligations under the sub-lease agreement.
Despite profit challenges, Rentomojo demonstrated robust operational performance with consolidated revenue from operations surging 51% year-on-year to ₹126 crore from ₹84 crore in the corresponding quarter last year. On a quarter-on-quarter basis, operating revenue grew 15.2% from ₹109.5 crore in Q4 FY26. The company's revenue from core operations increased 51% YoY to ₹126 crore in the June quarter of FY27, compared to ₹84 crore in the same period a year earlier. The company attributed this growth to expansion in the number of live products and orders on its platform. EBITDA increased 53.5% to ₹51 crore from ₹34 crore, with EBITDA margin witnessing a 64 basis point improvement to 40.76% in the period under review, from 40.12% in the same period year ago. The company's strong repeat behaviour and high organic demand demonstrate the sustainability of its business model, while healthy internal cash generation indicates robust cash flow generation capabilities.
The company's normalised profit, or net profit before exceptional items, surged 72% to around ₹22 crore in the quarter, before the expenses incurred by the fire incident in Noida weighed down the overall profit gains. This normalised performance demonstrates the underlying strength of Rentomojo's business model despite the exceptional costs. Excluding the one-time impacts of fire loss, other income, and the impact of DTA which was not in Q1FY26, normalised PAT grew at 71.8% on a Y-o-Y basis, as per the company's exchange filing. The company's strong repeat behaviour and high organic demand demonstrate the sustainability of its business model, while healthy internal cash generation indicates robust cash flow generation capabilities.
Geetansh Bamania, Chairperson, MD and CEO, expressed confidence in the quality of growth, stating that "What gives us particular confidence is the quality of this growth - strong repeat behaviour, high organic demand and healthy internal cash generation. The IPO has further strengthened our net worth and enhanced our capacity to fund future growth, giving us greater balance sheet flexibility as we scale." The company is anticipating strong profitability in the second half of the financial year following a first quarter that generated approximately ₹126 crore in revenue. As per CNBC-TV18, Bamania noted that "I'm very optimistic for the other quarters to be better." The platform is currently maintaining an occupancy rate of 83 to 85 percent across major categories, with essential household items such as refrigerators, washing machines, beds and mattresses forming the core of the business. Consumers are increasingly shifting away from traditional purchasing towards rental models, with items per user standing at between 2.6 and 2.8. The company's strong repeat behaviour and high organic demand demonstrate the sustainability of its business model, while healthy internal cash generation indicates robust cash flow generation capabilities.
