Rentomojo IPO Review: 88% OFS, Which Year Profit

Key takeaways

• The book opens 9 Sep 2026: ₹1,255.57 crore, of which ₹150 crore is fresh and ₹1,105.57 crore is OFS — 88% of the issue.
• Fresh proceeds: ₹70 crore to repay debt, ₹42.50 crore for warehouse and store leases. That is a balance-sheet tidy-up, not a growth raise.
• FY26 reported PAT was ₹104.30 crore on total income ₹394.09 crore. ₹36.6 crore of that PAT is a one-time tax credit. Ex-credit PAT is about ₹67.6 crore.
• At ₹404, post-issue mcap is ₹4,246 crore: 40.73x reported FY26, about 63x ex-credit. There is no listed Indian rental peer.
• An unofficial GMP of about ₹142 was quoted on 7 Sep (~35%) — unofficial, unregulated, often wrong.

The deal in one paragraph

Rentomojo rents furniture and appliances to 2.54 lakh live subscribers across 29 cities. Occupancy is 83%. Three reported profit years are in the coverage. The offer still has two facts that do more work than the brand: 88% of the ₹1,256 crore is an exit for Accel, Chiratae, Edelweiss, ValueQuest and the founder, and the 41x multiple uses a year that includes a ₹36.6 crore tax credit. Strip the credit and the same ₹4,246 crore is ~63x a rental book with no listed clone. The checklist is below.

Data

Issue structure

Item	Figure	Units
Total issue	1,255.57	₹ cr
Fresh issue	150.00	₹ cr
OFS	1,105.57	₹ cr
Price band	384–404	₹ / share
Lot	37	shares (₹14,948 at the cap)
Debt repayment	70	₹ cr of fresh
Leases / licences	42.50	₹ cr of fresh
Window	9–11 Sep 2026	opens tomorrow
Listing (tentative)	17 Sep 2026	NSE + BSE

Source: Outlook Money; Entrackr. Sellers include Accel India (DRHP 20.92%), Geetansh Bamania (14.69%), Chiratae / IDG (13.69%), Edelweiss Discovery (10.53%), ValueQuest (8.92%).

Financials (₹ cr)

	FY24	FY25	FY26
Total income	195.80	271.96	394.09
Revenue from operations	—	266	387
EBITDA margin	—	43.55%	41.48%
PAT (reported)	22.41	43.11	104.30
Tax credit inside PAT	—	—	36.6
PAT ex-credit	22.41	43.11	~67.7
Net worth	139.61	—	295.81
Borrowings	147.22	—	187.59
D/E	—	0.84	0.63
Live subscribers	—	—	2,53,825
Occupancy	—	—	83.34%

Units: ₹ crore except ratios and counts. Source: Outlook Money; Entrackr; StartupFox. FY24 operating revenue and operating cash flow were not in the notes I used. Performance marketing rose 86% in FY26 while EBITDA margin slipped (StartupFox).

Valuation at the upper band

Metric	At ₹404
Post-issue mcap	₹4,246 cr
Diluted EPS (post)	₹9.92
P/E on reported PAT	40.73x
P/E on PAT ex-credit	~62.8x
P/B	14.10x
Listed rental peer	none

Units: rupees crore and times. Source: Outlook Money; StartupFox. Both multiples are true; they measure different earnings.

Subscription and unofficial GMP

The book is not open yet (anchor 8 Sep; public 9–11 Sep). Outlook Money on 7 Sep quoted an unofficial GMP of about ₹142 versus ₹404 (~35% / ~₹546). Grey-market prints are informal and often wrong.

Risks

• 88% OFS. Funds and the founder are selling; the company keeps ₹150 crore, mostly for debt and rent.
• Which year’s profit. 41x reported versus 63x without the tax credit.
• No listed peer to borrow a multiple from.
• Asset-heavy rental: utilisation, refurbishment, warehouses, Dixon / private-label execution.
• Marketing grew faster than revenue; margin already narrowed.
• Operating cash flow unverified in the secondary notes.

What to watch

Five checks. At ₹404 this issue clears 1 of 5 (business). Numbers are partial because of the tax credit and missing OCF. Price and OFS do not clear.

What would change my mind: two quarters of PAT without a tax-credit crutch and occupancy still at or above 83% — or a live print nearer 25–30x on ex-credit FY26. Anchor result (8 Sep) and the 9–11 Sep book are the next dated facts. Listing is tentatively 17 Sep 2026.

A companion video is planned; it will quote only this article and docs/ipo_analysis/rentomojo.md.

Sources

1. Outlook Money, 7 Sep 2026 — issue, financials, unofficial GMP — accessed 8 Sep 2026.
2. Entrackr — objects and DRHP stakes — accessed 8 Sep 2026.
3. StartupFox — ₹36.6 crore tax credit and ~63x — accessed 8 Sep 2026.

Full working file: docs/ipo_analysis/rentomojo.md.

Disclaimer

AlphaResearch is not a SEBI-registered investment adviser or research analyst. This article is educational analysis based on publicly available information and is not investment advice or a recommendation to buy, sell, hold, subscribe to or avoid any security. Figures are taken from the sources listed above and may contain errors; verify them in the original filings. Investing in securities involves risk, including loss of principal. Consult a SEBI-registered adviser before making investment decisions.

Position disclosure: none.