The company’s operating performance also improved. EBITDA increased to approximately ₹52.3 crore from ₹34.8 crore a year earlier, reflecting growth in the rental business while the company maintained a normalised EBITDA margin of around 41%.

However, reported profit moved in the opposite direction. Net profit declined to approximately ₹7.84 crore from ₹12.77 crore in Q1 FY26, a fall of around 38.6%. This difference between reported and normalised profit is important when assessing the quarter.

Rentomojo attributed the gap largely to one time impacts, including a fire at its Noida warehouse, alongside other income and deferred tax effects. The fire related financial impact was reported at approximately ₹11.37 crore. The company’s normalised PAT, which adjusts for specified items, reached ₹21.93 crore, up 71.8% year on year. This adjusted figure is a company reported measure and should not be confused with statutory profit.

Demand indicators were also encouraging. Items ordered by subscribers increased 45.8% year on year, while the number of live subscribers reached approximately 2.83 lakh, compared with 2.08 lakh a year earlier. This suggests that growth was supported by an expanding customer base as well as repeat demand.

The company reported approximately 9.23 lakh live rental items, up from 6.54 lakh in the year ago quarter. Average occupancy improved to 85.7% from 83.3%. Higher utilisation can support asset productivity because furniture and appliances generate revenue over multiple rental cycles.

Rentomojo’s business model allows customers to access furniture and appliances through subscriptions rather than paying the full purchase price upfront. Its financial performance therefore depends on customer acquisition, subscription retention, product utilisation, rental pricing and the cost of maintaining and replacing its rental inventory.

Management highlighted strong repeat behaviour, organic demand and internal cash generation as important contributors to growth. These factors matter because customer retention and repeat orders may reduce the need to rely entirely on paid marketing to acquire new subscribers.

The company has also stated its ambition to build a larger technology led platform for flexible living. For investors, the key question is whether the business can keep expanding its subscriber base while maintaining margins and disciplined capital allocation.

Rentomojo’s recent IPO has strengthened its net worth and improved its financial flexibility, according to management. Access to additional capital could help the company expand its rental inventory and operating reach, although growth investments will need to generate adequate returns.

Cash conversion is another important area to monitor. In FY26, the company reported ₹172.9 crore in cash flow from operations and an EBITDA to operating cash flow conversion ratio of 1.05 times. Management indicated that operating cash flow fully funded growth capital expenditure during that year.

The latest quarter’s results therefore present two distinct signals. Revenue, EBITDA and normalised profit recorded strong growth, while reported PAT was affected by exceptional and other adjustments. Both sets of figures are relevant to understanding the company’s financial performance.

The Noida warehouse fire also highlights an operational risk in a business that owns and maintains a substantial inventory of physical assets. Investors should monitor the extent of insurance recovery, replacement costs, business disruption and any further exceptional expenses disclosed by the company.

Going forward, subscriber additions, repeat rental behaviour, occupancy, revenue per subscriber and inventory utilisation will help indicate whether growth is translating into a more efficient business. Changes in EBITDA margins and operating cash flow will also help assess the quality of that growth.

Rentomojo’s Q1 FY27 results show that demand and operating scale are expanding, but reported profitability remains sensitive to exceptional costs and accounting adjustments. The coming quarters should help clarify whether the company can sustain its growth rate while preserving profitability and capital efficiency.

Highlights in Short

• Revenue from operations: ₹126.33 crore, up 51.1% YoY.
• Total income: ₹127.10 crore, up approximately 49.8% YoY.
• Normalised EBITDA: ₹52.27 crore, up around 50.2% YoY.
• Normalised EBITDA margin: Approximately 41.1%.
• Reported PAT: ₹7.84 crore, down 38.6% YoY.
• Normalised PAT: ₹21.93 crore, up 71.8% YoY.
• One time fire related impact: Approximately ₹11.37 crore.
• Live subscribers: Approximately 2.83 lakh, up 36.3% YoY.
• Live rental items: Approximately 9.23 lakh, up 41% YoY.
• Average occupancy: 85.7%, compared with 83.3% in Q1 FY26.
• Revenue growth QoQ: Approximately 15.3%.
• Management focus: Repeat customers, organic demand, cash generation and capital efficiency.
• Key investor monitorables: Subscriber retention, occupancy, reported profit, exceptional costs and cash flow.