Rentomojo Limited Q2 revenue rises 53% as profit recovers

Rentomojo Limited reported standalone revenue from operations of Rs 142.113 crore for the quarter ended September 30, 2026, up 53% from Rs 93.011 crore a year earlier, while net profit recovered to Rs 18.193 crore from Rs 7.836 crore in the June 2026 quarter after that quarter absorbed a warehouse-fire charge.

How did Rentomojo perform in Q2 FY2026-27?

Rentomojo generated total income of Rs 143.792 crore in Q2 FY2026-27, compared with Rs 127.099 crore in Q1 FY2026-27 and Rs 93.933 crore in Q2 FY2025-26. Revenue from operations rose by Rs 15.786 crore sequentially from Rs 126.327 crore and by Rs 49.102 crore year on year, while other income was Rs 1.679 crore, against Rs 0.772 crore in the June quarter and Rs 0.922 crore a year earlier.

Profit before exceptional items and tax was Rs 23.997 crore, up from Rs 21.931 crore in Q1 FY2026-27 and Rs 15.768 crore in Q2 FY2025-26. Total expenses increased to Rs 119.795 crore from Rs 105.168 crore sequentially and Rs 78.165 crore a year earlier; other expenses accounted for Rs 65.406 crore and depreciation and amortisation for Rs 25.879 crore in Q2.

Rentomojo's Q2 reported net profit was below Rs 48.611 crore a year earlier because Q2 FY2025-26 included a deferred-tax credit of Rs 32.843 crore. In Q2 FY2026-27, deferred tax was an expense of Rs 6.211 crore, while basic earnings per share were Rs 1.84, compared with Rs 0.80 in Q1 FY2026-27 and Rs 4.86 in Q2 FY2025-26.

Why did Rentomojo's profit recover from the June quarter?

Rentomojo's sequential recovery reflected the absence of the Rs 11.366 crore loss from the Noida warehouse fire recognised as an exceptional item in the quarter ended June 30, 2026. The fire was reported on June 10, 2026 at a sub-leased warehouse in Noida, Uttar Pradesh, and the company fully provided for assets and consumables where management assessed uncertainty over recoverability.

Q2 FY2026-27 instead included a net exceptional gain of Rs 0.407 crore. Rentomojo charged Rs 80.1 lakh of IPO-related expenses to the statement of financial results, while recording a Rs 1.208 crore one-time reversal of employee-benefit expense after revising salary structures effective August 1, 2026 to align them with the Code on Wages, 2019.

Rentomojo said it had filed an insurance claim for the lost property, plant and equipment from the June 10 fire. Management said it did not expect a material adverse impact on the financial position because insurance coverage was in place, although survey proceedings were still in progress when the results were approved on November 10, 2026.

For the half year ended September 30, 2026, revenue from operations rose to Rs 268.440 crore from Rs 176.609 crore in the corresponding prior period. Net profit, however, fell to Rs 26.029 crore from Rs 61.385 crore, as the half year included a Rs 10.959 crore net exceptional charge and a Rs 8.940 crore deferred-tax expense, versus a Rs 32.843 crore deferred-tax credit in the prior-year period.

How did Rentomojo's assets, cash flow and borrowings change?

Rentomojo's total assets increased to Rs 930.898 crore at September 30, 2026 from Rs 641.127 crore at March 31, 2026. Property, plant and equipment rose to Rs 565.945 crore from Rs 426.165 crore, while right-of-use assets increased to Rs 65.874 crore from Rs 42.460 crore over the same period.

Net cash from operating activities for the half year was Rs 109.881 crore, compared with Rs 80.476 crore in the year-earlier period. Investing activities used Rs 259.947 crore, including Rs 191.486 crore spent on property, plant and equipment, including capital advances and capital creditors, compared with Rs 79.174 crore of such purchases in the corresponding prior period.

Rentomojo reported financing cash inflow of Rs 158.590 crore for the half year, against Rs 3.085 crore in the prior-year period. It received Rs 142.660 crore from issue of equity shares net of expenses, raised Rs 168.281 crore in borrowings, repaid or prepaid Rs 123.099 crore of borrowings, and ended September 2026 with Rs 31.618 crore in cash and cash equivalents.

What changed after Rentomojo's IPO?

Rentomojo completed its initial public offering, or IPO, during Q2 FY2026-27 and its equity shares were listed on the National Stock Exchange of India and BSE Limited on September 17, 2026. The IPO comprised a fresh issue of 37,14,482 shares worth Rs 150 crore and an offer for sale of 2,73,65,529 shares worth Rs 1,105.567 crore, at Rs 404 a share before a Rs 20 employee discount for 32,560 reserved shares.

Fresh-issue IPO expenses were estimated at Rs 7.34 crore, of which Rs 6.539 crore was adjusted against securities premium and Rs 80.1 lakh was recognised in the results. Trade payables rose by Rs 45.446 crore during the half year, mainly because Rs 34.485 crore of IPO-related expenses were payable, according to the cash-flow statement.

Rentomojo's equity share capital increased to Rs 10.407 crore at September 30, 2026 from Rs 3.447 crore at March 31, 2026. Before the IPO, its board approved on July 20, 2026 the conversion of 65,013 compulsorily convertible preference shares into 6,58,83,702 equity shares under shareholder agreements.

Rentomojo reported one business segment, providing furniture and appliances on rental and subscription basis in India, so the filing does not give revenue or profit by product category or geography. The September 2025 quarterly and half-year comparatives were compiled by management and were not subject to statutory audit or limited review, while the September 2026 standalone results received an unmodified limited-review conclusion.

Conclusion

Rentomojo's Q2 results show higher standalone revenue and a sequential recovery in profit after the June warehouse-fire loss. The first-half figures also show a larger asset base, with property, plant and equipment increasing by Rs 139.780 crore from March 31, 2026, alongside Rs 191.486 crore of half-year expenditure on property, plant and equipment.

The next disclosed matter to watch is the survey and insurance claim relating to the June 10, 2026 Noida warehouse fire, which remained in progress on November 10, 2026. Later filings can also show how the Rs 150 crore fresh IPO issue, half-year borrowing proceeds of Rs 168.281 crore and debt repayments and prepayments of Rs 123.099 crore affect investment and financing balances.