Athira Sethu
Kochi, 11 November 2026
Online furniture rental business Rentomojo posted a steep drop in its net profit in the second quarter of the fiscal year 2026-27 despite posting a substantial rise in its revenue.
The consolidated net profit for the July-September quarter was ₹18.18 crore as against ₹48.60 crore in the same period a year ago.
It means a drop in net profit of 62.6%.
But the revenue from operations grew by 53%, implying that the business grew for the company.
Rentomojo Revenue Up 53%
Rentomojo’s revenue stood at ₹142 crore in the September quarter of FY27 as compared with ₹93 crore in the same quarter last year.
It shows robust growth in the business of furniture rental of the company.
Rentomojo offers furniture and other household items for rent through an online platform.
Through the rental option, people can get household products without making a heavy payment in one go.
It makes easy to furnish houses with furniture and other household products without spending much money at one time.
Reason Behind The Fall In Rentomojo’s Profit
One of the main reasons behind the fall in the profit level of Rentomojo was the onetime tax benefit obtained by the firm during the September quarter of FY26.
The firm got a tax credit worth ₹32.84 crore which helped them save on their tax expenditure.
Thus, the total profit obtained by the firm was ₹48.60 crore.
There was no such onetime tax benefit obtained by Rentomojo in the current quarter.
That’s why their profit seems to be very less as compared to last year’s figures.
Another reason behind this was the higher operating expenses of the firm.
Rentomojo Expenses Up By 53%
During the September quarter, Rentomojo incurred total expenses of ₹120 crore as against ₹78 crore in the same period last year.
This shows a rise of nearly 53% in total expense.
This rise in the expense was mostly due to higher operating expense as well as depreciation.
Depreciation refers to the decrease in the book value of assets over time.
EBITDA Margin Slightly Lower
The EBITDA margin of Rentomojo decreased slightly to 40.21% for Q2 FY27 from 40.43% for Q2 FY26.
It declined by 22 basis points.
EBITDA margin reflects the extent to which a firm earns operating income from its revenues before deducting interest expense, taxes, depreciation and amortization.
The slight reduction implies that there have been some increases in expenses.
Reported Second Quarterly Earnings after Rentomojo Listing
Rentomojo was listed on NSE and BSE on September 17, 2026.
The latest earning report has come out to be the second quarterly report since the listing of Rentomojo.
It can be seen that the earnings reports suggest growth in the revenues of Rentomojo but the high expenses and lack of tax benefit have made an impact on its profits.
