Industry Odisha Bureau, Sep 04: Rentomojo’s profit growth is reshaping investor sentiment ahead of listing. The furniture rental company has strengthened profitability significantly over recent years. Operating cash generation has improved alongside this profit trajectory. Rentomojo is now approaching its planned initial public offering. Its asset-heavy business model remains central to this story.
The company has posted profits for four consecutive years now. Profit after tax reached ₹104.3 crore in FY26. That figure more than doubled from ₹43.1 crore in FY25. Earlier years showed ₹22.4 crore in FY24 and ₹4.4 crore in FY23. This trajectory reflects a steady, sustained profitability climb.
Revenue growth has accompanied this improving profit picture. Revenue from operations rose 45.5% to ₹386.99 crore in FY26. Stronger revenue and profit together have bolstered investor confidence. Sustained financial performance appears to be reshaping market perceptions gradually.
Operating cash generation tells a similarly encouraging story. Rentomojo generated ₹172.9 crore in net cash from operations. Capital expenditure on property, plant and equipment stood at ₹175.8 crore. This means internal cash generation nearly matches expansion capital needs. That marks a meaningful shift for an asset-heavy business.
Asset reuse remains central to Rentomojo’s underlying economics. Products get returned, refurbished and redeployed across multiple rental cycles. Management estimates a useful asset life of roughly ten years. As of March, over half of FY17 cohort assets still generated revenue. Rentomojo held 851,184 live items by FY26’s end. Occupancy across this inventory stood at 83.34 percent.
The company’s IPO is sized at ₹1,255.57 crore total. It comprises a ₹150 crore fresh issue of shares. An offer for sale accounts for ₹1,105.57 crore of the total. The issue opens September 9 and closes September 11. Shares are priced in a band of ₹384–404. Fresh issue proceeds will largely fund debt repayment and leases.
India’s furniture and appliance rental market offers considerable headroom. Redseer valued this market at ₹1,550 crore in 2025. It’s projected to reach ₹6,030 crore by 2030. This growth potential underpins Rentomojo’s broader expansion strategy.
Yet the business remains operationally complex and asset-heavy. It combines subscription management, capital expenditure, collections and refurbishment simultaneously. Warehousing and logistics add further operational layers to manage. This complexity could deter new entrants from the category.
Together, sustained profitability and improving cash generation signal a maturing business. Rentomojo’s path toward its IPO reflects this broader financial transformation underway.
