Rentomojo says 2017 assets generate revenue after nine years

Rentomojo Limited says 56.12% of its Fiscal 2017 furniture and appliance assets were generating revenue as of March 31, 2026, while the Fiscal 2018 cohort recorded 60.92%. Rentomojo says these results support management’s approximately 10-year useful-life estimate, which depends on refurbishment, preventive maintenance and redeployment across multiple rental cycles.

How does Rentomojo keep 2017 rental assets generating revenue?

Rentomojo keeps older rental assets in service by inspecting, repairing, refurbishing and redeploying returned products after subscriptions end. As of March 31, 2026, 56.12% of its Fiscal 2017 furniture and appliance cohort and 60.92% of its Fiscal 2018 cohort were generating revenue. The cohort measure includes furniture, appliances and water purifiers, but excludes two-wheelers, smartphones and tablets.

Rentomojo incurs capital expenditure before an item is rented and seeks to recover that outlay through recurring subscription revenue over several deployment cycles. The company says returned items are evaluated through standardised diagnostic processes, restored where required and reintroduced into its deployable pool. Continued revenue from the Fiscal 2017 and Fiscal 2018 cohorts therefore requires recoverable items, effective repairs and limited downtime between subscribers.

Management estimated the useful life of Rentomojo’s furniture and appliances at approximately 10 years as of March 31, 2026. The disclosure supports that estimate with the two cohort percentages and with its refurbishment, preventive-maintenance and quality-control processes; it does not provide a cohort-level depreciation schedule. A longer serviceable period allows the original procurement cost to be spread over more rental cycles, subject to utilisation and repair costs.

What do Rentomojo’s older cohorts show about asset life?

Rentomojo’s disclosed older cohorts show that a majority of assets in both vintages were still earning revenue on March 31, 2026. The Fiscal 2018 cohort’s 60.92% revenue-generating share was 4.80 percentage points above the Fiscal 2017 cohort’s 56.12%. Rentomojo describes both cohorts as generating revenue after more than nine years.

The comparison measures the share of items in two historical cohorts generating revenue, not rental revenue in rupees or overall utilisation. Rentomojo does not disclose the original item count, product mix, acquisition cost, refurbishment cost or cumulative revenue for either cohort. The table consequently shows asset survival in revenue service rather than the absolute financial contribution of the Fiscal 2017 or Fiscal 2018 assets.

The cohort measure also differs from occupancy. Rentomojo defines occupancy as the average number of items deployed with subscribers divided by average live items during a year, while the cohort table measures whether items from a specific vintage were generating revenue at March 31, 2026. The 56.12% and 60.92% results should therefore not be read as company-wide occupancy rates.

What operating evidence supports Rentomojo’s multi-cycle model?

Rentomojo’s live-item base rose to 851,184 in Fiscal 2026 from 634,091 in Fiscal 2025 and 463,130 in Fiscal 2024. Live items are total items procured since inception less scrap or non-recoverable items, display items, items in transit, assets with repair vendors and photoshoot items. This definition means the Fiscal 2026 figure excludes inventory that is no longer available for normal deployment.

Occupancy increased by 0.52 percentage points in Fiscal 2026 from Fiscal 2025, but remained 3.09 percentage points below Fiscal 2024’s 86.43%. The live-item base nevertheless expanded by 217,093 items in Fiscal 2026. For older cohorts to remain productive, Rentomojo must convert returned inventory into rentable stock without a corresponding build-up of idle, damaged or non-recoverable items.

Refurbishment cost rose to Rs 19.029 crore in Fiscal 2026 from Rs 14.899 crore in Fiscal 2025 and Rs 8.574 crore in Fiscal 2024. Rentomojo says its refurbishment infrastructure, warehouses and service workforce allow items to be inspected, repaired and redeployed. The company also states that higher refurbishment intensity can increase operating costs and affect margins, making cost control part of the asset-life outcome.

Why does asset longevity matter to Rentomojo’s revenue model?

Asset longevity matters because Rentomojo recognises rental revenue over subscription periods after procuring physical assets upfront. Revenue from operations increased to Rs 386.988 crore in Fiscal 2026 from Rs 265.959 crore in Fiscal 2025 and Rs 192.701 crore in Fiscal 2024. Rentomojo says redeployment speed, revenue-generating cycles and the period an item remains serviceable affect revenue realisation per asset, depreciation intensity, return on capital employed and margins.

Subscriber demand provides the outlet for deployed and redeployed assets. Live subscribers increased to 253,825 at March 31, 2026 from 194,262 a year earlier and 149,498 at March 31, 2024, while items per user rose to 2.83 from 2.67 and 2.61. Rentomojo defines a live subscriber as a unique subscriber with at least one rented product at the reporting date, linking growth in the subscriber base to potential demand for its asset pool.

Rentomojo reported Rs 706.902 crore of total contracted revenue for Fiscal 2026, compared with Rs 390.028 crore for Fiscal 2025, and Rs 292.573 crore of unrecognised contracted revenue at March 31, 2026. Total contracted revenue includes newly rented items and the unexpired contractual period of items live at the start of the year. Unrecognised contracted revenue is to be recognised over remaining subscription tenures, subject to early termination, defaults or contract modifications.

Rentomojo’s average subscription period was 18.04 months in Fiscal 2026, compared with 18.82 months in Fiscal 2025 and 18.41 months in Fiscal 2024. Its subscription contracts renew monthly and include auto-renewal features, but shorter tenures or higher churn can reduce revenue visibility and require further customer-acquisition spending. Multi-cycle asset returns depend not only on durable inventory but also on continued customer demand for relevant products.

What could interrupt revenue generation from older Rentomojo assets?

Rentomojo identifies asset deterioration, increased refurbishment intensity, slower redeployment and a shorter effective useful life as factors that could increase depreciation and operating costs. An older item must remain serviceable, be recovered when a subscription ends and be restored promptly enough for another deployment. Changes in subscriber needs may also make existing assets less suitable and could require additional capital expenditure.

The company’s selected operating-cost drivers totalled Rs 133.072 crore in Fiscal 2026, compared with Rs 124.424 crore in Fiscal 2025 and Rs 81.048 crore in Fiscal 2024. These costs, which include logistics, contractual manpower, employee benefits, refurbishment, information technology and marketing, represented 47.31% of revenue from operations in Fiscal 2026, against 46.78% in Fiscal 2025 and 42.06% in Fiscal 2024. Fuel, labour, warehouse use, technician productivity and spare-parts consumption can affect the cost of keeping assets available for redeployment.

Conclusion

Rentomojo’s Fiscal 2017 and Fiscal 2018 cohort disclosures provide direct evidence that some furniture and appliance assets remain revenue-generating after more than nine years. The results fit a model based on repeated rental cycles, but the economics also depend on occupancy, subscriber demand, repair execution and refurbishment spending across an 851,184-item live base in Fiscal 2026.

The next update to watch is whether Rentomojo can sustain its approximately 10-year management estimate while controlling refurbishment intensity and redeployment time. Rentomojo has disclosed that deterioration, lower utilisation, slower redeployment and changing subscriber requirements could affect depreciation, operating costs and margins; Fiscal 2026 occupancy of 83.34% is the company-wide benchmark for future comparisons.