Markets India
Rentomojo shares jumped 10% to ₹650 on November 11, hitting a 52-week high despite a sharp decline in quarterly profits. The stock's rally reflects investor confidence in its revenue growth and operational efficiency.
Shares of Rentomojo surged 10%, reaching ₹650—a 52-week peak—on November 11 following the release of Q2 FY27 results, even as consolidated net profit fell 63% year-over-year to ₹18.1 crore. Revenue from operations grew 50% YoY to ₹142.1 crore, while EBITDA rose sharply to ₹58 crore from ₹37.6 crore in the same period last year.
The stock's massive volume spike of 12.20x, with over 10 million shares traded, underscores heightened investor interest despite declining net margins driven by higher tax expenses and one-time benefits that boosted prior-year profits. Analysts note investors are pricing in Rentomojo’s growth potential as it expands into home furniture rentals.
However, the company faces challenges balancing profit growth with rising costs. Rising tax outlays to ₹6.2 crore—compared to a deferred credit of ₹32.8 crore last year—and uncertainty over replicating one-time benefits from FY26 could pressure future profitability if revenue expansion slows.
Investors are betting on Rentomojo’s growth trajectory despite profit declines, but the company must demonstrate sustainable margin improvements to maintain market confidence.
Topics: StockMarketIndia, FinancialResults, RevenueGrowth, OperationalEfficiency, TaxImpact
#FinanceNews #StockMarketIndia #EBITDAGrowth #HomeFurnitureSector #TaxExpenses
Source: Business Standard
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