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In its first financial disclosure after becoming a listed entity, furniture and appliance rental startup RentoMojo’s consolidated net profit tanked 38.7% to ₹7.8 Cr in the first quarter (Q1) of the fiscal year 2026-27 (FY27) compared to ₹12.8 Cr in the year-ago quarter. On a sequential basis, the company’s profit more than halved, 53% to be precise, from ₹16.8 Cr. The dip in bottom line came despite operating revenue zooming 51.1% to ₹126.3 Cr in the quarter under review as against ₹83.6 Cr in Q1 FY26. Sequentially, the company’s revenue from operations rose 15.2% from ₹109.5 Cr in Q4 FY26. The company attributed the jump in top line to the “growth” in live items and items ordered on the platform during the quarter. Including other income of ₹77 Lakh, RentoMojo’s total income for the quarter under review stood at ₹127.1 Cr. Meanwhile, total expenses stood at ₹105.2 Cr in Q1 FY27, up 45.9% from ₹72.1 Cr in the year-ago quarter. “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,” said RentoMojo cofounder, MD and CEO Geetansh Bamania. In an investor presentation alongside the financial disclosures, the recently-listed startup noted that its EBITDA improved 17.5% YoY to ₹40.9 Cr in Q1 FY27, while EBITDA margin contracted to 32.2% from 41% in Q1 FY26. The EBITDA took a hit as the company booked ₹11.4 Cr in costs related to “exceptional items”, which pertained to the fire at the company’s sub-leased warehouse in Noida in June this year. “... The fire has resulted in significant damage to the said warehouse and the items of property, plant and equipment stored therein. The management has ascertained the total financial impact of ₹11.37 Cr attributable to derecognition of net carrying value of the property, plant and equipment, cost of consumable, other assets and other financial assets related to the warehouse / items of property, plant and equipment stored therein…,” the financials read. RentoMojo also claims to have filed an insurance claim for the loss of property and equipment, adding that the first information report (FIR) and insurance surveyor report is still pending. The company has also received a legal notice from the sub-leasor, but believes that RentoMojo has “assessed as no liability arising from contractual obligations in terms of the sub- lease agreement”. Founded in 2014 by Bamania and Ajay Nain, RentoMojo operates a subscription-based platform for renting furniture, appliances and home essentials. Backed by Accel, Chiratae Ventures and Bain Capital, the startup has raised over $45 Mn in funding to date. On the operational front, RentoMojo claims to have operated 23 warehouses and 89 offline stores across India at the end of June 2026. It had a portfolio of 9.2 Lakh live products across furniture and appliances in Q1 FY27, up 41% YoY, and catered to 2.8 Lakh active users, up 36.3% YoY. The company clocked an average revenue per product of ₹1,662.6 in the quarter under review, up 6.8% YoY and QoQ. Meanwhile, occupancy rate improved to 86.8% in Q1 FY27 as against 84.8% in the year ago quarter. The financials come weeks after RentoMojo made a strong stock market debut. The stock listed at ₹482.45 on the NSE, a premium of 19.42% over its issue price of ₹404. On the BSE, RentoMojo opened at ₹480, up 18.81% from the issue price. The startup’s public issue had comprised a fresh issue worth ₹150 Cr and an OFS of up to 2.74 Cr shares worth ₹1,105.6 Cr. Separately, the company’s board also appointed company secretary Deepika Bhandiwad as the compliance officer to comply with SEBI norms. The board also gave its nod to appoint Price Waterhouse Chartered Accountants LLP as the statutory auditors of the company for a term of five consecutive years. This proposal is, however, subject to shareholder nod. “Our ambition is to build Rentomojo into a scaled, technology-led platform for flexible living, while remaining disciplined on profitability and capital efficiency. The IPO is an important milestone in that journey, but it is only the beginning,” added Bamania. Shares of RentoMojo closed Monday’s trading session 2.83% lower at ₹510.8 on the BSE.
document fetched 2026-10-06 02:57 · canonical https://inc42.com/buzz/rentomojo-q1-profit-tanks-39-yoy-to-%e2%82%b97-8-cr-revenue-zooms-51