Rentomojo Q1FY27 results approved; PwC named statutory auditor
- Revenue from operations grew 51.1% YoY to ₹1,263.27 million in Q1FY27
- Normalised PAT rose 71.8% YoY to ₹219 million despite a 38.6% dip in reported PAT
- Board approved Q1FY27 results and appointed Price Waterhouse as statutory auditors for five years
- Live subscribers increased 36.3% YoY to 283,058; gross items ordered up 45.8% YoY
*this image is generated using AI for illustrative purposes only.
Rentomojo Limited reported revenue from operations of ₹1,263.27 million for the quarter ended June 30, 2026 (Q1FY27), marking a 51.1% year-on-year increase. This growth was driven by a rise in live items and items ordered, reflecting strong demand for its furniture and appliance rental services.
Reported net profit for the quarter stood at ₹78.35 million, a decline of 38.6% compared to ₹127.67 million in the corresponding period last year. The dip was primarily attributed to an exceptional item of ₹113.66 million arising from a fire incident at a sub-leased warehouse in Noida. Excluding this non-recurring charge and other one-time impacts, normalised profit after tax grew 71.8% YoY to ₹219 million.
The company’s operational metrics showed robust expansion. Live subscribers increased by 36.3% YoY to 283,058, while gross items ordered surged 45.8% YoY to 329,159. Average occupancy rate improved by 234 basis points YoY to 85.7%, indicating efficient asset utilisation.
Financial Performance Overview
The following table summarises the key financial metrics for Q1FY27 compared to prior periods:
| Metric | Q1FY27 | Q4FY26 | Q1FY26 | Change YoY |
|---|---|---|---|---|
| Revenue from operations | ₹1,263.27 mn | ₹1,095.36 mn | ₹835.98 mn | +51.1% |
| EBITDA | ₹409 mn | ₹488 mn | ₹348 mn | +17.5% |
| Normalised EBITDA | ₹523 mn | ₹459 mn | ₹348 mn | +50.2% |
| Net Profit (PAT) | ₹78.35 mn | ₹167.86 mn | ₹127.67 mn | -38.6% |
| Normalised PAT | ₹219 mn | ₹197 mn | ₹128 mn | +71.8% |
| EPS (Basic) | ₹0.78 | ₹1.67 | ₹1.28 | -39.1% |
Operational Highlights
Rentomojo continued to scale its network and user base significantly during the quarter:
- Live Items: Grew 41.0% YoY to 922,631 units.
- Experience Stores: Expanded to 89 stores across 14 cities as of June 30, 2026.
- Purchase Displaced: Increased 51.6% YoY to ₹4,136.84 million, highlighting the value proposition of renting over buying.
- Items per User: Stable at 2.8, with a 6.0% YoY increase in average subscription depth.
Board Approvals and Auditor Appointment
The Board of Directors, at its meeting held on October 5, 2026, approved the unaudited standalone and consolidated financial results for Q1FY27. The Board also recommended the appointment of Price Waterhouse Chartered Accountants LLP (Firm Registration Number: 012754N/N500016) as the Statutory Auditors for a term of five consecutive years, commencing from the conclusion of the 14th Annual General Meeting (AGM) until the conclusion of the 19th AGM in 2031. This appointment is subject to shareholder approval at the ensuing AGM.
Price Waterhouse replaces Deloitte Haskins & Sells LLP, whose term expired. Price Waterhouse is a member firm of Price Waterhouse & Affiliates, with more than 120 Assurance Partners as of April 1, 2026.
Additionally, the Board approved Ms. Deepika N. Bhandiwad, Company Secretary, as the Compliance Officer under the SEBI (Prohibition of Insider Trading) Regulations, 2015, and authorised her along with CFO Mr. Hakim F. Ujjainwala to determine the materiality of events or information.
Exceptional Items and IPO Context
Regarding the exceptional item, the company recorded a charge of ₹113.66 million due to fire damage at its Noida warehouse. Management stated that insurance claims have been filed and no material adverse impact is expected on the overall financial position given the coverage in place.
It is noted that Rentomojo completed its Initial Public Offer (IPO) subsequent to the quarter ended June 30, 2026. The equity shares were listed on NSE and BSE on September 17, 2026. The IPO comprised a fresh issue of 3,714,482 equity shares aggregating to ₹1,500.00 million and an offer for sale of 27,365,529 equity shares aggregating to ₹11,055.67 million.
What the Numbers Show
A divergence exists between reported and normalised profitability metrics. While reported PAT declined 38.6% YoY, the underlying business momentum remained strong, with normalised PAT growing 71.8% YoY. This gap is entirely explained by the ₹113.66 million exceptional charge. Furthermore, the company’s weighted average cost of debt stood at 9.58%, while normalised ROCE reached 26.6%, indicating a healthy spread of approximately 17 percentage points above its cost of capital.
Historical Stock Returns for Rentomojo
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.60% | +1.80% | +26.47% | +26.47% | +26.47% | +26.47% |
How will the ₹12.5 billion IPO proceeds be allocated to support Rentomojo's expansion into new cities and categories?
What is the expected timeline for the recovery of insurance claims related to the Noida warehouse fire, and how might this impact future quarterly cash flows?
Can Rentomojo sustain its 50%+ revenue growth trajectory as it faces increased competition from traditional retail financing and other rental platforms?
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