Rentomojo shares in focus after Q2 results as profits shrink 62% despite healthy revenue growth; here’s why

Recently listed furniture leasing company Rentomojo shares are set to be in investors' focus on Wednesday, November 11, as the company reported a more than 62% contraction in consolidated net profit despite healthy revenue growth in the July to September quarter of the financial year 2026-27.

In the latest NSE filings, the data showed that Rentomojo posted a subdued earnings growth performance in the September quarter of FY27, despite an around 53% surge in core revenues for the period.

The Q2 earnings release marks the company’s second financial statement disclosure after it was listed, nearly two months ago, on the benchmark stock exchanges NSE and BSE on September 17, 2026.

Why did Rentomojo’s PAT fall despite revenue hike?

In the Q2 earnings, Rentomojo recorded a 62.6% decline in the company’s consolidated net profit after tax (PAT) to ₹18.18 crore, in comparison to ₹48.60 crore in the corresponding quarter of the previous financial year, as per the exchange filings.

The company also posted a nearly 53% year-on-year (YoY) increase in the revenue from core operations at ₹142 crore in the second quarter of FY27, compared to ₹93 crore in the same period a year earlier.

A deeper dive into the financials showed that the online furniture-leasing company’s net profits witnessed a sharp decline in the Q2 earnings report, due to a higher base of profits in Q2 FY26.

This higher base of profits emerged from a one-time tax credit benefit of ₹32.84 crore, which decreased the overall tax expenses for Rentomojo, while inflating the net profits in the same period last year to ₹48.60 crore.

Hence, a combination of a higher base along with the sharp increase in expenses in the September quarter of FY27 resulted in the overall impact on Rentomojo’s financials in the period under review.

Rentomojo’s consolidated statements showed that the company’s total expenses increased 53% YoY to ₹120 crore in the September quarter, from ₹78 crore in the same period a year ago, largely due to the sharp rise in other expenses in the period.