RentoMojo’s net profit fell 38.7% year on year to ₹7.8 crore in Q1 FY27, even as its revenue jumped 51.1% to ₹126.3 crore, reflecting operational challenges amid expanding business scale.
- Q1 net profit down 39% YoY to ₹7.8 crore
- Revenue up 51% YoY to ₹126.3 crore
- EBITDA margin narrows to 32.2% from 41%
What happened
RentoMojo, a furniture and appliance rental startup in India, released its Q1 FY2026-27 financial results following its recent public listing. The company reported a consolidated net profit of ₹7.8 crore for the quarter, marking a 38.7% decline compared to ₹12.8 crore in the same quarter last year. On a sequential basis, profit dropped 53% from ₹16.8 crore in Q4 FY26.
Despite this dip in profit, RentoMojo achieved substantial growth in its operating revenue, which climbed 51.1% year on year to ₹126.3 crore. This increase was driven by a rise in both active live rental items and fresh orders processed during the quarter. Including other income of ₹0.77 crore, total income stood around ₹127.1 crore.
Why it matters
The steep fall in net profit alongside strong revenue growth highlights the challenges rental startups face in balancing scale and profitability, especially in a competitive Indian market. Although top-line performance improved due to expanded customer adoption and rental activity, cost pressures and margin compression affected the company’s bottom line.
RentoMojo’s EBITDA grew 17.5% year on year to ₹40.9 crore, indicating operational improvements, but the EBITDA margin contracted from 41% to 32.2%. This margin squeeze suggests rising expenses related to growth initiatives or increased operational costs that the firm needs to manage strategically going forward.
What to watch next
Market observers will look for how RentoMojo addresses profitability challenges amid rapid expansion. The company’s ability to improve margins while maintaining revenue momentum will be crucial in establishing sustainable growth as a newly-listed entity.
Key indicators to monitor include cost management, unit economics of rentals, customer retention, and the impact of competitive pressures in India’s rental ecosystem. Future quarterly results will reveal whether the firm can convert its scaling advantage into stronger earnings and cash flow.