Rentomojo revenue jumps 53%, profit falls 63%

Rentomojo Limited reported a mixed Q2 FY27 performance, with revenue from operations increasing 53% YoY to ₹142 crore. However, net profit declined 62.6% to ₹18.18 crore, compared with ₹48.60 crore in the corresponding quarter last year. Key Highlights • Revenue increased 53% YoY to ₹142 crore. • Net profit declined 62.6% to ₹18.18 crore. • Total expenses increased 53% to approximately ₹120 crore. • EBITDA margin stood at 40.21%, compared with 40.43% a year earlier. • Previous year's profit included a one-time tax credit benefit of ₹32.84 crore. My View Rentomojo's results highlight the difference between revenue growth and reported profit growth. The 53% increase in revenue indicates strong demand for furniture and appliance rental services. However, the sharp decline in net profit needs context. The previous year's earnings included a significant tax credit benefit, creating a higher comparison base. Operating performance appears relatively stable, with EBITDA margins declining only marginally despite strong business growth. The focus should now be on improving operating leverage and converting revenue growth into sustainable profitability. What I'm Watching Next I will monitor customer additions, rental asset utilisation, operating margins and cash flow generation. The key question is whether Rentomojo can sustain its growth while improving profitability. Stance: Cautiously positive. Strong revenue growth and stable operating margins are encouraging, but sustainable profitability remains important. Disclosure: I do not have any holding or position in the stock mentioned above. RENTOMOJO