Rentomojo shares surge over 10% despite a 39% YoY fall in Q1 profits; revenue growth, fire incident impact in focus

Furniture lending platform Rentomojo shares surged more than 10% during the trading session on Tuesday, October 6, as investors analysed the company’s first-ever earnings report for the April to June quarter of FY27 and its financial performance post-listing on the equity market.

Although Rentomojo’s consolidated net profit after tax (PAT) declined nearly 39% year-on-year (YoY), the overall revenue growth, combined with the one-time expenses from the fire incident in Noida and the increase in operating profits, resulted in the stock’s rally on Tuesday’s market.

NSE data showed that Rentomojo shares jumped 10.1% to touch an intraday high of ₹562.60 apiece during the trading session on October 6, in comparison to ₹510.95 apiece at the previous equity market close.

After hitting the day’s high, the company’s stock retracted some gains, trading 7.9% higher at ₹552.10 apiece during the morning market hours, with trading activity surging past 6.7 million equity shares across NSE and BSE, triggering volume gains.

The company filed its Q1 earnings report with the stock exchanges after the market operating hours on Monday, October 5, 2026.

Why are Rentomojo shares rising today?

Rentomojo shares were rising during the trading session on Tuesday, as investors reacted to the company’s strong normalised profit in the first quarter of FY27, along with the healthy revenue gains and strong improvement in operating profit.

NSE filings data showed that Rentomojo’s net profit after tax (PAT) declined nearly 39% YoY to ₹8 crore in the period under review, compared to ₹13 crore in the same period a year earlier.

While the company’s normalised profit, or net profit before exceptional items, surged 72% to around ₹22 crore in the quarter, before the expenses incurred by the company’s fire incident in Noida, Uttar Pradesh, weighed down the overall profit gains.

The fire caused significant damage to the company’s warehouse and the property and equipment stored inside, which resulted in a one-time total financial impact of ₹11.36 crore in the period under review.

Rentomojo’s financial statements also showed that the company’s revenue from core operations surged 51% YoY to ₹126 crore in the June quarter of FY27, compared to ₹84 crore in the same period a year earlier.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) or operating profits, advanced 53.5% YoY to ₹51 crore, compared to ₹34 crore in the same quarter last year.

While the EBITDA margin witnessed a 64 basis point improvement to 40.76% in the period under review, from 40.12% in the same period a year ago.

Management outlook

Geetansh Bamania, the CEO, MD and Chairperson of Rentomojo, said that the company has started the financial year 2026-27 with strong momentum, with subscribers growing 45.8% year-on-year and revenues increasing 51.1%, while maintaining a normalised EBITDA margin of approximately 41%.

“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 Bamania.

Media reports suggest that after the earnings announcement, the management also accepts that the first-quarter momentum will continue to grow, supported by rising demand for rental products and an increasing subscriber base of the company.

How much has Rentomojo gained since IPO?

Rentomojo shares were listed on the NSE, marking a 19.42% premium on September 17, 2026, and ever since then, the company’s stock has recorded consistent growth on the exchanges due to investors' interest.

Since the IPO listing, Rentomojo shares have delivered more than 39% returns to the primary investors as of October 6, when compared to the issue price of ₹404 apiece.

However, if compared with the listing price on NSE, the stock has gained more than 16% since its listing on the exchange. The exchange data also showed that Rentomojo shares have risen 10% in the last five market sessions.

The company’s market capitalisation (m-cap) was at ₹5,778 crore as of the trading session on Tuesday, October 6, 2026.