Rentomojo’s four-year profit streak bolsters ₹1,255.57 crore IPO case
Rentomojo reported FY26 revenue of ₹386.99 crore, up 45.5%, and profit after tax of ₹104.3 crore. The furniture-rental platform says operating cash flow is now funding inventory capex as it prepares for a 9–11 September IPO and deeper expansion in cities including Lucknow and Indore.
What happened
Rentomojo says four years of profitability and FY26 operating cash flow now fund inventory capex, improving lender sentiment. The furniture-rental company plans
Key facts
- ₹1,255.57 crore IPO
- 9-11 September IPO window
- ₹384-404 per share price band
- ₹150 crore fresh issue
- ₹1,105.57 crore offer for sale
- ₹172.9 crore FY26 operating cash flow
- ₹175.8 crore FY26 capital expenditure
- ₹386.99 crore FY26 revenue, up 45.5%
- ₹104.3 crore FY26 profit after tax versus ₹43.1 crore
- ₹1,550 crore furniture/appliance rental market in 2025
- ₹6,030 crore projected market by 2030
- 851,184 live items at FY26-end
- 83.34% occupancy rate
Why this matters
Rentomojo’s four-year profit streak and self-funded inventory investment make it a credible strategic partner or benchmark for companies targeting India’s growing subscription-based home-furnishing market.
What to watch
- IPO subscription levels, anchor-investor participation, pricing versus the indicated valuation range and listing-day performance.
- Whether operating cash flow continues to cover inventory capex after expansion rather than only in FY26.
- Revenue growth, PAT margin and EBITDA/cash conversion in the first two reported periods after listing.
- Inventory days, furniture utilization, subscriber growth, churn, defaults and refurbishment/write-off rates.
- Cost per acquisition, delivery and reverse-logistics costs in newly launched cities versus mature markets.
- Competitive pricing or subsidy activity from rental-furniture, appliance-rental and e-commerce players.
- Any increase in debt, working-capital strain or related-party/governance disclosures in IPO documents.
- Use IPO proceeds and internally generated cash to add rental inventory, warehousing and delivery capacity in Lucknow, Indore and other underpenetrated cities.
- Prioritize categories with higher residual value and repeat-rental potential to protect unit economics as the asset base expands.
- Increase institutional, corporate and relocation partnerships to improve demand visibility and reduce customer-acquisition dependence.
- Highlight operating-cash-flow coverage of capex, inventory utilization, churn and collection metrics during IPO marketing to counter concerns over the capital intensity of furniture rental.
- Potentially accelerate refurbishment, resale and recovery channels to monetize returned furniture and limit losses from inventory aging.