Rentomojo IPO

Strengths · 8

• 01Profit has grown very fast, from Rs 22.41 crore in FY2024 to Rs 43.11 crore in FY2025 and Rs 104.30 crore in FY2026.
• 02Sales have doubled in two years, from Rs 195.80 crore in FY2024 to Rs 394.09 crore in FY2026, a rise of 45% in the last year.
• 03EBITDA more than doubled over the same period, from Rs 78.15 crore to Rs 163.46 crore.
• 04Return ratios are good, with RoCE of 25.14% and RoNW of 26.67%, and a PAT margin of 16.21%.
• 05The subscriber base is large and spread out, at 253,825 live subscribers across 29 cities as on 31 March 2026.
• 06The company handles the full life of the asset itself, from buying and refurbishing to putting the item out again, so one item can earn over several rental cycles.
• 07Its occupancy rate was 83.34% in FY2026, which means most of the assets it owns were actually out on rent and earning.
• 08It has real infrastructure behind the service, with 82 experience stores, 20 warehouses of 538,933 square feet and an average delivery time of 2.35 days.

Risks · 9

• 01The issue is priced high on earnings. At the upper band of Rs 404 the P/E is about 40.73 times on an EPS of Rs 9.92.
• 02There is no dominant promoter. Promoter holding is only 21.49% before the issue and falls to 19.94% after it, and the promoter names are not stated in the data available to us.
• 03This is a capital heavy business despite being called a platform. Furniture and appliances have to be bought upfront and the money comes back slowly over many rental cycles.
• 04Everything depends on occupancy. The 83.34% occupancy rate is what makes the model work, and a fall in it would hit returns quickly because the asset cost is already sunk.
• 05Borrowing has gone up every year, from Rs 147.22 crore in FY2024 to Rs 187.59 crore in FY2026.
• 06Rs 42.50 crore of the issue money goes towards lease rent and licence fees for warehouses and stores. That is a running cost, not an asset the company will own.
• 07Rented items come back used. Damage, repair and the fall in value of older stock are permanent costs in this business.
• 08Competition comes from cheap online buying options and from other rental platforms, and customers can simply choose to buy instead of rent.
• 09This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.

Rentomojo Limited was started in April 2012. It runs an online platform where people rent home furniture and appliances on a monthly subscription instead of buying them. The customer can rent, return, upgrade or shift the product to a new city without paying a large amount upfront or being stuck with ownership.

Its range covers everyday home items such as beds, mattresses, washing machines, refrigerators, wardrobes, sofas, televisions and water purifiers. As on 31 March 2026 it had 851,184 items live with customers.

The company handles the whole life of the asset itself, covering what to stock, product design, buying, refurbishing, servicing, taking the item back and putting it out again to the next customer. Because one item can be rented out over several cycles, this model decides how well the money invested in assets is recovered. It sells both online and through 82 experience stores across India. As on 31 March 2026 it had 253,825 live subscribers across 29 cities and ran 20 warehouses covering 538,933 square feet. In FY2026 its average delivery time was 2.35 days and its occupancy rate was 83.34%.

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