Rentomojo Q2 Earnings Fall 63% Despite 53% Revenue Growth

Rentomojo, a recently listed furniture rental company, reported a 62.6% year-on-year drop in its profit after tax to ₹18.2 Cr for the quarter ended September 30, 2026, according to Inc42. This figure represents a decrease from ₹48.6 Cr in the same period last year. The primary driver of this reduction was a shift in tax accounting, where a deferred tax credit of ₹32.8 Cr in the prior year was replaced by a deferred tax expense of ₹6.2 Cr in the current quarter. On a sequential basis, however, the company’s net consolidated profit increased by 133% from ₹7.8 Cr in the previous quarter.

Operating revenue for the quarter grew 52.8% year-on-year to ₹142.1 Cr, with total income reaching ₹143.8 Cr when including other income. Inc42 noted that this growth was driven by an increase in customer orders, live subscribers, and rental inventory. The company’s active subscriber count rose by 42.5% to roughly 3.2 Lakh, while its live item stock increased by 44% to 10.5 Lakh. Average occupancy rates improved by 61 basis points to 85.9%, and average revenue per item increased by 4.6% to ₹1,650.

Total expenses for the period increased by 53.2% year-on-year to ₹119.8 Cr. Employee benefit expenses rose by 38.3% to ₹19.5 Cr, and finance costs climbed by 46.7% to ₹9 Cr. Excluding exceptional items and deferred tax adjustments, Rentomojo’s normalised profit after tax increased by 52.2% to ₹24 Cr. Normalised EBITDA also grew by 52.7% to ₹58.8 Cr, reflecting improved operational performance.

The firm grew its physical presence to 96 experience locations across 14 cities by late September, up from 67 sites a year prior. Customers ordered 3.8 Lakh gross items during the quarter, a 45% increase over the previous year. Inc42 reported that assets bought in the FY17 cycle yielded cumulative earnings equal to 5.3 times their initial cost, with 54% of that group still producing income. This was the company’s second quarterly report following its September IPO, where it raised ₹1,255.6 Cr. As of September 30, Rentomojo had spent ₹90 Cr of the ₹141.4 Cr net funds set aside for its stated goals. Shares of the company closed 3.30% higher at ₹610.9 on the BSE.