Rentomojo shares jumped up to 10 percent in Wednesday's trading session, recovering sharply from an early decline of nearly 3 percent.
The stock rose to Rs 649.80 per share on the NSE after the company's net profit increased 125 percent sequentially to Rs 18 crore in the September quarter of the current fiscal, compared with Rs 8 crore in the April-June quarter.
The stock had come under pressure in early trade after the company's consolidated net profit (PAT) declined 63 percent year-on-year (YoY), against Rs 48.60 crore in the corresponding quarter of the previous fiscal.
However, the decline in reported profit was largely due to a higher tax expense and a one-time benefit in the year-ago period.
In Q2 FY26, Rentomojo had reported a deferred tax credit of Rs 32.84 crore, which had boosted its net profit. In comparison, the company incurred a tax expense of over Rs 6 crore in the quarter under review.