Cult.fit gets SEBI nod for IPO plans
What's the story
Cult.fit, a leading player in the fitness services and active lifestyle sector, has received observations from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO). The company's IPO plan includes a fresh issue of equity shares worth up to ₹950 crore and an offer for sale (OFS) of up to 17.86 crore equity shares by existing shareholders.
Fund allocation
Fresh issue to fund various initiatives
Cult.fit intends to use the funds raised from its fresh issue for various purposes.
These include repaying/prepaying certain borrowings, funding capital expenditure for new fitness centers, investing in its subsidiary Cultsport for new exclusive brand outlets, meeting lease payments for existing centers, and financing brand marketing/business promotion activities.
Some of the proceeds will also be used for general corporate purposes.
Business growth
Financial performance and operational footprint
As of March 31, 2026, Cult.fit operated 708 fitness centers across 77 Indian cities.
The company's fitness services business had nearly 9.87 lakh paid members in FY26 while its fitness products business shipped over 42.3 lakh products during the same period.
Cult.fit's operating revenue grew by an impressive 36.26% YoY to ₹1,720.61 crore in FY26 from ₹1,262.93 crore in FY25.
Financial metrics
Improving margins and revenue streams
Cult.fit's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to 8.41% in FY26 from -2.76% in FY25.
The company derives around 70% of its revenue from fitness services and the remaining 30% from fitness products.
This diversified approach provides a mix of membership-led and transactional revenue streams for the business.
Market potential
Market growth and IPO timing
Cult.fit operates in a fitness services market that was worth an estimated ₹25,600 crore in calendar year 2025.
The sector is expected to grow to between ₹48,700 crore and ₹53,100 crore by 2030 due to rising disposable incomes, health awareness, and access to organized fitness services.
The company's proposed IPO comes amid this growth in India's organized fitness market.