Fitness platform Cult.fit has filed draft papers for a ₹950 crore IPO, including a fresh issue of shares and an offer for sale by existing investors and actor Hrithik Roshan. The company aims to use proceeds for new center expansion, debt repayment, and marketing. Cult.fit reported a narrowed net loss of ₹251.9 crore for FY26 as its adjusted EBITDA turned positive.
Fitness and active lifestyle operator Cult.fit has moved toward a public listing by filing preliminary documents with India's market regulator for an Initial Public Offering (IPO). The company plans to raise up to ₹950 crore through a fresh issue of shares. Alongside this, existing stakeholders—including managing director Mukesh Bansal and actor Hrithik Roshan—will sell a portion of their holdings through an offer for sale. The company is also exploring a pre-IPO placement of ₹190 crore, which, if completed, would lower the total amount raised through the primary fresh issuance.
Capital Use and Debt Plans
A significant portion of the funds from the fresh issue is intended to support the company's network growth and financial restructuring. Cult.fit plans to invest ₹276.6 crore into launching new 'Cult Elite' and 'Cult Neo' centers. Another ₹217.5 crore is set aside for recurring lease and license costs for its existing fitness facilities. To strengthen its balance sheet, the firm has earmarked ₹120 crore for the repayment or prepayment of its borrowings. Additionally, the company intends to spend ₹75 crore on brand marketing and ₹23.4 crore to help its subsidiary, Cultsport, expand its footprint with new retail outlets.
Financial Recovery and Segment Performance
Founded in 2016, the company operates a large network of 708 fitness centers across 77 cities, serving nearly 9.87 lakh paid members as of March 31, 2026. Financials for the fiscal year ending March 2026 show a narrowing loss of ₹251.9 crore, down from ₹480.8 crore in the previous year. A key indicator of this performance shift is the company's adjusted EBITDA, which turned positive at ₹144.8 crore in FY26, compared to a loss of ₹33.5 crore in FY25. This improvement reflects an adjusted EBITDA margin of 8.41%.
Revenue for the fiscal year stood at ₹1,720.6 crore, representing a 41.6% growth over the previous year. The fitness services segment remains the dominant revenue driver, contributing nearly 70% of the total, or ₹1,197.8 crore, and generating a profit of ₹210.1 crore. In contrast, the company's products business—which includes apparel and equipment sold under the CultStore brand—contributed ₹522.8 crore in revenue but incurred a loss of ₹57.4 crore. While this product segment loss has improved from ₹79.9 crore in FY25, investors may track whether the company can achieve sustainable profitability in its retail operations as it expands its physical footprint and manages overall debt levels.