Rentomojo shares rose 9% as the company posted a 51% increase in revenue to ₹126.3 crore for the June quarter. While reported net profit fell due to a one-time warehouse fire loss, normalized earnings grew by over 70%. Investors are weighing this strong operational growth against the risks associated with maintaining physical warehouse infrastructure.
Rentomojo saw its share price rise by 9% on Tuesday, hitting an intraday high of ₹557 on the National Stock Exchange. This market reaction follows the company's first earnings report since its IPO in mid-September 2026, where the subscription-based rental firm reported significant top-line growth. Investors appear to be looking past a decline in bottom-line figures, focusing instead on the underlying expansion of the business.
The company’s revenue from operations reached ₹126.3 crore for the June quarter, marking a 51.1% increase compared to the same period last year. This growth was supported by rising demand for its rental furniture and appliance services. Operational metrics were strong, with the number of live subscribers increasing 36.3% to over 2.8 lakh. Additionally, the volume of items ordered by customers rose by nearly 46% year-on-year, indicating a healthy appetite for the company’s rental model.
While operating growth was significant, reported net profit after tax fell 38.6% to ₹7.8 crore. This decline was primarily caused by a one-time exceptional loss of ₹11.36 crore resulting from a fire at a warehouse facility in Noida. To understand the underlying health of the business, market analysts have highlighted the normalized profit after tax, which grew 71.8% to ₹21.9 crore when excluding this non-recurring event. The market's positive response suggests that shareholders are viewing the fire as a transitory operational hurdle rather than a structural issue.
Rentomojo, which listed on the stock exchanges on September 17, 2026, at an issue price of ₹404, has maintained upward momentum since its debut. The business relies on a technology-driven model to manage its fleet of rental assets. However, the June quarter incident highlights specific risks regarding asset concentration. Investors should monitor how the company mitigates operational disruption, as its business model depends heavily on the security and availability of these physical warehouse facilities. Future quarters will be important to track to see if the company can maintain its current pace of subscriber growth and operational efficiency while scaling its national footprint.