Rentomojo Q2 Revenue Rises 52.8 per cent as Subscriber Growth and Occupancy Strengthen

Rentomojo operates a technology-led furniture and appliance rental platform, where subscriber additions, asset utilisation and refurbishment cycles are central to revenue growth. The company reported a 52.8 per cent YoY rise in revenue from operations to Rs 142.1 crore for the second quarter of financial year 2027, or Q2 FY27, as its active subscriber base and deployed rental fleet expanded.

Revenue was also 12.5 per cent higher QoQ from Rs 126.3 crore. Normalised earnings before interest, Tax, depreciation and amortisation, or EBITDA, increased 52.7 per cent YoY to Rs 58.8 crore, while normalised profit after tax, or PAT, rose 52.2 per cent to Rs 24 crore. The normalised EBITDA margin was broadly stable at 40.9 per cent, compared with 41 per cent a year earlier.

Reported profitability was more volatile. Reported PAT declined 62.6 per cent YoY to Rs 18.2 crore, although it more than doubled QoQ from Rs 7.8 crore. Rentomojo said the difference between reported and normalised profit reflected deferred tax effects, the impact of new labour codes and initial public offering expenses. Reported EBITDA rose 53.7 per cent YoY to Rs 59.2 crore, while the reported EBITDA margin improved to 41.2 per cent from 32.2 per cent in the preceding quarter.

Operating indicators remained firm during the quarter. Live subscribers grew 42.5 per cent YoY to 3.24 lakh and live items increased 44 per cent to 10.49 lakh. Average occupancy improved by 61 basis points YoY to 85.9 per cent, indicating that the company sustained utilisation while adding rental assets. Average revenue per item increased 4.6 per cent YoY to Rs 1,650, though it slipped marginally QoQ following reverse pick-up of air conditioners.

For the first half of FY27, revenue from operations rose 52 per cent to Rs 268.4 crore and normalised PAT increased 61 per cent to Rs 45.9 crore. Operating cash flow grew 36.7 per cent to Rs 110 crore, equivalent to 109.8 per cent of EBITDA. Capital expenditure on fleet and fit-outs, however, rose 140.6 per cent to Rs 192.3 crore as the company invested in expansion. Following its September 17, 2026 listing, net debt declined to Rs 130.6 crore as at September 30, 2026, even as gross debt rose with fleet investment.

Rentomojo shares were trading at Rs 609.20 at 3:50 pm on November 11, 2026, up 3.01 per cent from the previous close. The stock was about 1.9 per cent below its 52-week high of Rs 621.15 and had a market capitalisation of Rs 6,157.35 crore. At the current price, the company trades at 59.04 times trailing 12-month earnings and 38.02 times enterprise value to trailing EBITDA, reflecting elevated expectations around subscriber growth, utilisation and sustained profitability.

What This Means for Investors

The quarter reinforces Rentomojo’s ability to scale its rental fleet without a meaningful dilution in normalised operating margin. Revenue growth was supported by a 42.5 per cent rise in live subscribers, a 44 per cent increase in live items and improved occupancy. This matters for an asset-intensive rental platform because new fleet additions must be deployed quickly and generate recurring income over their useful life. Strong operating cash conversion also supports the quality of underlying earnings.

The principal qualification is capital intensity. First-half fleet and fit-out expenditure rose much faster than operating cash flow, leaving future returns dependent on occupancy, recovery, refurbishment and pricing discipline. The reduction in net debt after the initial public offering improves balance sheet flexibility, but reported PAT can continue to diverge from normalised earnings because of tax accounting, exceptional items and financing costs. Valuation remains demanding at 59.04 times trailing earnings, which places greater importance on maintaining current growth and margin execution.

Disclaimer: The article is for informational purposes only and not investment advice.