Rentomojo share price jumps 10% to 52-week high despite 63% profit fall
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: geralt / Pixabay
Rentomojo shares rose as much as 10% to a 52-week high on 11 November 2026 after its first results since listing: revenue up 52.8%, reported profit down 62.6% on a tax base effect.
What Happened
Shares of Rentomojo, which rents out furniture and home appliances on subscription, rose as much as 10% in intraday trade on Wednesday, 11 November 2026, touching a 52-week high, after the company reported its first quarterly results since listing on the stock exchanges. Revenue from operations for the July-September quarter of 2026 (Q2 FY27) rose 52.8% from a year earlier to about Rs 142 crore. Reported net profit, however, fell about 62.6% to around Rs 18.2 crore, a fall the company's figures tie largely to a one-time deferred-tax benefit that had inflated the year-ago profit.
Key Facts
- Intraday gain: as much as 10% on 11 November 2026, to a 52-week high.
- Revenue from operations, Q2 FY27: about Rs 142 crore, up 52.8% year on year.
- Total income, including other income: about Rs 144 crore, according to reported figures.
- Reported net profit: about Rs 18.2 crore, down 62.6% year on year.
- Reason for the profit fall: the year-ago quarter included a deferred-tax benefit, a one-time accounting credit for taxes saved in future, which does not repeat this year.
- This was Rentomojo's first set of quarterly results as a listed company.
- Market backdrop: the Sensex closed 772.75 points, or 0.95%, higher at 81,879.40 and the Nifty 50 rose 210.40 points, or 0.84%, to 25,255.05 on the same day.
Why It Matters
At first sight, a 10% jump in a share price on a day when profit fell by almost two-thirds looks odd. The explanation lies in how the profit figure was built. A deferred-tax benefit is an accounting entry: a company records the value of tax it expects to save later, often because of past losses, and that entry adds to profit in the quarter it is booked. When the year-ago figure includes such a credit and the current one does not, reported profit can fall sharply even when the business itself is growing.
Investors appeared to look past that headline and focus on revenue, which grew by more than half in a year. For a subscription rental business, revenue growth reflects more customers renting more items, while this quarter's bottom line was distorted by the tax entry in the base period. Coverage of the results highlighted subscriber growth and higher use of the company's rental stock.
First results after listing carry extra weight. New listings have no long public track record, so the first quarterly numbers are the market's first chance to test the growth story told in the offer document against audited figures. A strong first report can set the tone for how the stock is treated in the months that follow.
The broader market helped too. The Sensex and the Nifty 50 both rose close to 1% on the day, so the move came in a rising market. Rentomojo's gain, at as much as 10%, was well ahead of that.
Peepals calculation: A 62.6% fall to about Rs 18.2 crore implies a year-ago reported profit of roughly Rs 48.7 crore (18.2 ÷ 0.374). Revenue growth of 52.8% to about Rs 142 crore implies year-ago revenue of around Rs 93 crore (142.11 ÷ 1.528 ≈ 93.0). So revenue rose by about Rs 49 crore while reported profit fell by about Rs 30.5 crore, a gap explained mainly by the one-time tax credit in the base quarter. Our calculation from the reported figures.
| Measure | Q2 FY27 | Change year on year |
|---|---|---|
| Revenue from operations | about Rs 142 crore | up 52.8% |
| Reported net profit | about Rs 18.2 crore | down 62.6% |
| Intraday share move, 11 Nov | up to 10% | 52-week high |
Impact
Short-term: The stock's reaction shows investors reading through the one-time tax effect; trading in the days after first results is often volatile as new shareholders reposition.
Long-term: Future quarters will no longer be compared with a tax-inflated base in the same way, so reported profit growth should become easier to read against revenue growth.
Who is affected: Rentomojo shareholders and those who bought in its initial public offer, investors following newly listed consumer companies, and the company's renters and staff.
Key Takeaway
Rentomojo's shares rose as much as 10% to a 52-week high on 11 November 2026 because revenue grew 52.8%, even though reported profit fell 62.6% on a one-time tax base effect.
Questions and Answers
Why did the Rentomojo share price rise after Q2 results?
Shares rose as much as 10% on 11 November 2026 after revenue from operations grew 52.8% to about Rs 142 crore, with investors looking past a fall in reported profit caused by a one-time tax credit in the year-ago quarter.
Why did Rentomojo's profit fall in Q2 FY27?
Reported net profit fell about 62.6% to around Rs 18.2 crore mainly because the year-ago quarter included a deferred-tax benefit that inflated that period's profit; the current quarter had no such credit.
Were these Rentomojo's first results as a listed company?
Yes. The July-September 2026 quarter results were the company's first quarterly results since it listed on the stock exchanges.
How did the wider market do on 11 November 2026?
The Sensex rose 772.75 points to close at 81,879.40, and the Nifty 50 gained 210.40 points to 25,255.05.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
