Listed furniture and appliance rental firm RentoMojo reports a sharp profit dip of 38.7% in its first quarter post-IPO, despite a 51% surge in revenue, amid a fire loss and margin pressures, as it accelerates subscriber and gross item growth.
RentoMojo has made a mixed start to life as a listed company, reporting that net profit fell sharply in the June quarter even as revenue continued to climb. In its first financial disclosure since going public, the furniture and appliance rental startup said profit for the first quarter of FY27 dropped 38.7% year on year to ₹7.8 crore, from ₹12.8 crore a year earlier. Profit was also down 53% sequentially from ₹16.8 crore in the previous quarter.
The company’s top line moved in the opposite direction. Operating revenue rose 51.1% to ₹126.3 crore in the quarter, compared with ₹83.6 crore in Q1 FY26, and was up 15.2% from ₹109.5 crore in Q4 FY26. RentoMojo said the improvement was driven by growth in live items and in the number of items ordered on its platform during the period. Including other income of ₹77 lakh, total income came to ₹127.1 crore.
Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 17.5% from a year earlier to ₹40.9 crore, according to the company’s investor presentation. Even so, the EBITDA margin narrowed to 32.2% from 41% in the same quarter last year, suggesting that higher revenue did not fully offset pressure on profitability.
ScanX reported that the decline in reported profit was linked to a one-time fire loss, while normalised profit after tax, which strips out exceptional items, rose 71.8% year on year to ₹21.9 crore. The same report said RentoMojo’s live subscriber base increased 36.3% to 283,058 and gross items ordered rose 45.8%. It also noted that Price Waterhouse Chartered Accountants LLP had been appointed as the company’s new statutory auditor.
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