Rentomojo shares have declined 2.05% to ₹557.10 from the previous close of ₹568.75, despite the company's strong Q1 FY27 results. The stock was among the most traded securities on the National Stock Exchange, reflecting continued investor interest in the rental platform's growth trajectory. According to latest market data, the stock's market capitalisation has risen 8% to ₹5,800 crore following the Q1 FY27 results announcement, demonstrating continued investor confidence in the company's rental business model.
As reported by LiveMint, revenue from operations increased 51% year-on-year to ₹126.3 crore in Q1 FY27. The company's normalised EBITDA of ₹52.3 crore translates into a margin of around 41%, while normalised earnings before interest and tax (EBIT) stood at ₹29.2 crore, with a margin of nearly 23%. However, reported profitability was affected by an exceptional loss of ₹11.37 crore following a fire at the company's Noida warehouse. The company generated operating cash flow of ₹173 crore in FY26, comfortably exceeding growth-related capital expenditure of ₹87.5 crore, with management highlighting an EBITDA-to-operating-cash-flow conversion ratio of more than 100% over the past three years. For the June 2026 quarter specifically, normalised profit was ₹21.9 crore, up 71.8% when removing one-time fire losses.
According to LiveMint, items ordered increased 45.8% year-on-year to 3.29 lakh and live subscribers rose 36.3% to 2.83 lakh in Q1 FY27. The company's live rental inventory expanded 41% to 9.23 lakh items, while average occupancy increased to 85.7% from 83.3% a year earlier, with period-end occupancy reaching 86.8%. These trends highlight the company's ability to grow its rental inventory while maintaining healthy utilisation levels. Average revenue per item rose 6.8% year-on-year to ₹1,663, while the number of items per user remained stable at 2.8. Purchase displacement, which measures the value of purchases replaced by renting, increased 51.6% to ₹413.7 crore.
As reported by LiveMint, the company ended Q1 FY27 with 89 company-operated experience stores, up from 82 in March, while its offline channel recorded approximately 83% year-on-year growth. Rentomojo is expanding its private-label and contract-manufacturing initiatives, having sourced its own refrigerators and washing machines manufactured by Dixon Technologies since FY25. The company's entry into service-intensive categories such as water purifiers could further strengthen its offering through bundled maintenance services and potentially improve product economics. Ishan Tanna from Ashika Capital highlighted the company's omnichannel expansion, entry into new cities and broader product portfolio as potential growth drivers supporting the business model.
