Furniture and appliance rental company RentoMojo reported a 62.6% year-on-year decline in consolidated profit after tax (PAT) to Rs 18.2 crore in the second quarter of FY27, compared with Rs 48.6 crore in the corresponding quarter last year. However, the decline was largely linked to a deferred tax credit recorded in the year-ago period rather than a fall in its operating business.
Bengaluru-based startup reported operating revenue of Rs 142.1 crore in Q2 FY27, registering a 52.8% increase from Rs 93 crore in Q2 FY26. Its normalised profit, after excluding deferred tax adjustments and exceptional items, increased 52.2% to Rs 24 crore from Rs 15.8 crore in the same quarter last year.
Startup growth was supported by an increase in its subscriber base, higher customer orders and expansion of its physical experience stores. RentoMojo had around 3.2 lakh active subscribers at the end of September 2026, marking a 42.5% year-on-year increase.
Revenue Growth
RentoMojo revenue growth reflects higher demand for furniture, home appliances and other household products through rental subscriptions. The company reported an increase in customer orders and a larger subscriber base during the quarter.
Its reported profit comparison was affected by a deferred tax credit of Rs 32.8 crore in Q2 FY26. In contrast, the company recorded a deferred tax expense of around Rs 6.2 crore in Q2 FY27. This difference affected the year-on-year comparison of its reported net profit.
The normalised profit figure provides a different view of its financial performance by excluding these tax adjustments and exceptional items. The 52.2% increase in normalised profit indicates that the company also recorded growth in profitability alongside higher operating revenue.
Subscriber Base
RentoMojo reported a 42.5% increase in its live subscriber base to approximately 3.2 lakh in Q2 FY27. The number of gross items ordered by customers also increased 45% year-on-year to around 3.81 lakh, according to its quarterly business update.
Company continued to expand its physical presence through experience stores, which allow customers to view furniture and household products before choosing rental plans.
By September 30, 2026, RentoMojo had expanded its network to 96 experience stores across 14 cities, compared with 67 stores a year earlier.
Average occupancy of its rental inventory also improved to 85.9%. Higher occupancy indicates that a larger share of its available rental products remained in use, an important factor for businesses that generate income from physical assets.
Rental Operations
Increase in subscribers and occupancy is relevant to RentoMojo business model, which depends on keeping furniture and appliances in regular use through rental agreements.
Company provides products such as beds, sofas, wardrobes, refrigerators, washing machines and other household essentials. Customers can access these products through monthly rental payments instead of making a large upfront purchase.
Its expansion in experience stores also supports an omnichannel approach, combining online subscriptions with physical locations where customers can view products and understand rental options.
The company reported that its normalised EBITDA increased 52.7% year-on-year to Rs 58.8 crore during Q2 FY27, indicating growth in operating earnings before interest, taxes, depreciation and amortisation, after adjustments specified by the company.
What is RentoMojo
Founded in November 2014 by Geetansh Bamania and Ajay Nain, RentoMojo is a Bengaluru-based furniture and appliance rental company. The startup was established to address the difficulties faced by working professionals and people who frequently relocate between cities and need household products without purchasing them outright.
The company initially focused on furniture rentals and later expanded into appliances, electronics and other household essentials. It operates through its website, mobile platform and physical experience stores, serving customers across multiple Indian cities.
RentoMojo Business Model
RentoMojo follows a subscription-based rental model in which customers pay monthly charges to use furniture, appliances and other household products for an agreed period. Instead of purchasing these products, users can rent them according to their requirements and return or replace them as per the applicable terms.
The company earns revenue through recurring rental payments and offers services related to delivery, installation and product maintenance. Its business depends on acquiring and managing rental inventory, maintaining product quality and keeping assets occupied to generate regular income.
Profitability Outlook
The Q2 FY27 performance shows that RentoMojo has expanded its revenue, subscriber base and physical network. However, the increase in rental inventory and operating scale also requires spending on assets, logistics, maintenance and customer services.
The improvement in normalised profit suggests that the business has recorded better underlying financial performance than the headline 63% decline in reported PAT indicates.
As a recently listed company, RentoMojo will now be under closer public scrutiny regarding its ability to maintain subscriber growth, improve asset utilisation and manage the costs associated with its rental operations. Its performance over the coming quarters will provide a clearer picture of whether the current growth can translate into sustained profitability.
