Rentomojo share price jumps 38% from IPO price in nearly 1 month | Check 5 factors driving the surge

Rentomojo shares have surged 38% above their IPO issue price of ₹404, as investors assess the company’s strong revenue growth, improving profitability and rising demand for rental furniture and appliances. Rentomojo shares listed on the stock exchanges on 17 September 2026.

Ishan Tanna, Senior Associate at Ashika Capital, said the company’s Q1 FY27 results highlighted robust demand, improving monetisation and healthy utilisation of its rental inventory.

Rentomojo’s ₹1,250 crore initial public offering (IPO) was subscribed 73 times, and the stock listed at a premium of around 20% to its issue price. According to Tanna, the company’s June-quarter performance has further strengthened investor interest, with its market capitalisation rising 8% to ₹5,800 crore following the results announcement, less than three weeks after listing.

Revenue from operations increased 51% year-on-year to ₹126.3 crore in Q1 FY27. Tanna highlighted the company’s normalised EBITDA of ₹52.3 crore, translating into a margin of around 41%, while normalised earnings before interest and tax (EBIT) stood at ₹29.2 crore, with a margin of nearly 23%.

However, reported profitability was affected by an exceptional loss of ₹11.37 crore following a fire at the company’s Noida warehouse.

Tanna pointed to strong growth in customer demand, with items ordered increasing 45.8% year-on-year to 3.29 lakh and live subscribers rising 36.3% to 2.83 lakh. Rentomojo’s live rental inventory also expanded 41% to 9.23 lakh items.

Inventory utilisation improved alongside this expansion. Average occupancy increased to 85.7% from 83.3% a year earlier, while period-end occupancy reached 86.8%. These trends highlight the company’s ability to grow its rental inventory while maintaining healthy utilisation levels, according to the brokerage assessment.

Tanna also highlighted improvements in monetisation. Average revenue per item rose 6.8% year-on-year to ₹1,663, while the number of items per user remained stable at 2.8. Purchase displacement, which measures the value of purchases replaced by renting, increased 51.6% to ₹413.7 crore.

Cash generation is another factor supporting the business model. Rentomojo generated operating cash flow of ₹173 crore in FY26, comfortably exceeding growth-related capital expenditure of ₹87.5 crore. Management has also highlighted an EBITDA-to-operating-cash-flow conversion ratio of more than 100% over the past three years.

Looking ahead, Tanna’s assessment highlights Rentomojo’s omnichannel expansion, entry into new cities and broader product portfolio as potential growth drivers. The company ended Q1 FY27 with 89 company-operated experience stores, up from 82 in March, while its offline channel recorded approximately 83% year-on-year growth.

Rentomojo is also expanding its private-label and contract-manufacturing initiatives. Since FY25, it has been sourcing its own refrigerators and washing machines manufactured by Dixon Technologies. Its entry into service-intensive categories such as water purifiers could further strengthen its offering through bundled maintenance services and potentially improve product economics.

Overall, Tanna’s assessment points to rising demand, improved inventory utilisation, better monetisation and cash generation as key factors supporting Rentomojo’s growth prospects. The company’s ability to sustain these trends while executing its expansion plans will remain important for its performance going forward.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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HomeMarketsStock MarketsRentomojo share price jumps 38% from IPO price in nearly 1 month | Check 5 factors driving the surge

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