RentoMojo Profit Drops 39% YoY in Q1, Revenue Rises 51%
Furniture and appliance rental startup RentoMojo reported a 39% year-over-year decline in net profit for its first fiscal quarter, despite a 51% increase in revenue.
RentoMojo, an Indian startup specializing in furniture and appliance rentals, has reported a significant drop in profitability for its first fiscal quarter of 2026-27. The company's consolidated net profit fell by 38.7% to ₹7.8 crore (approximately $930,000 USD) compared to ₹12.8 crore in the same period last year. Sequentially, profit more than halved, dropping 53% from ₹16.8 crore.
This decrease in bottom-line profit occurred despite a substantial 51.1% increase in operating revenue, which rose to ₹126.3 crore from ₹83.6 crore year-over-year. The company attributed this revenue growth to an increase in active inventory and orders on its platform.
A notable factor impacting the company's earnings was an exceptional charge of ₹11.4 crore related to a fire at one of its sub-leased warehouses in June. The incident caused significant damage to property and equipment. RentoMojo has filed an insurance claim for the losses and stated it believes no contractual liabilities have arisen from the incident.
CEO Geetansh Bamania expressed confidence in the quality of the company's growth, citing strong repeat customer behavior and organic demand. He highlighted that the recent IPO has strengthened the company's balance sheet, enhancing its capacity for future expansion while maintaining a focus on profitability and capital efficiency.