Cult.fit Gets SEBI Approval for IPO: From Gyms to Dalal Street?

Cult.fit is moving closer to its stock market debut after receiving approval from the Securities and Exchange Board of India (SEBI) for its proposed IPO. The offering includes a fresh issue of up to ₹950 crore and an offer for sale by existing shareholders.

The company has grown into a network of 708 fitness centres, with annual revenue crossing ₹1,700 crore. But despite its growing business and shrinking losses, Cult.fit is yet to become profitable.

So, can India's growing fitness industry help Cult.fit turn its expanding business into sustainable profits?

How Did Cult.fit Reach the SEBI IPO Approval Stage?

Cult.fit's IPO journey gained momentum in June 2026, when reports suggested the company was preparing a ₹3,500–4,000 crore public offering.

On July 7, 2026, Cult.fit filed its Draft Red Herring Prospectus (DRHP) with SEBI, formally beginning the regulatory review process.

On October 12, SEBI issued its observations on the draft documents, clearing the company to proceed with its IPO plans.

However, the IPO has not launched yet. The subscription dates, price band and final issue size are still to be announced.

Cult.fit IPO Details: How Much Will It Raise?

The proposed IPO consists of two parts:

Source: Cult.fit's Draft Red Herring Prospectus. 

The fresh issue will bring money directly into Cult.fit, while the OFS allows existing shareholders, including investors such as Temasek-backed MacRitchie Investments, Tata Digital and Accel entities, to sell part of their holdings.

Cult.fit proposes to spend ₹276.6 crore on new fitness centres, ₹217.5 crore on lease-related payments and ₹120 crore on debt repayment. It has also earmarked ₹75 crore for marketing and ₹23.4 crore for expanding Cultsport stores.

The spending plans make the company's strategy clear: expand its fitness business while managing existing financial commitments. But how much money is Cult.fit already making?

How Does Cult.fit Make Money?

Cult.fit earns revenue through two main businesses.

• Fitness services include gym memberships, group workout sessions and related fitness offerings. This segment generated ₹1,197.83 crore in FY26, accounting for approximately 70% of operating revenue.
• Fitness products include equipment, activewear, footwear and accessories. This segment contributed ₹522.77 crore, or around 30% of revenue.

Interestingly, the products business grew approximately 60% in FY26, faster than the services business, which grew around 35%. However, growing sales do not necessarily mean growing profits, as Cult.fit's financials show.

Cult.fit Financials: Revenue Growth vs Losses

Source: Cult.fit's Draft Red Herring Prospectus. 

Revenue increased 41.55% in FY26, while losses attributable to owners fell approximately 48%. More importantly, adjusted EBITDA turned positive at ₹144.78 crore. This indicates improving operating performance, although adjusted EBITDA excludes several expenses and does not represent net profit.

Why Is Cult.fit Still Making Losses?

The answer becomes clearer when we look beyond revenue growth. In FY26, Cult.fit reported depreciation and amortisation expenses of approximately ₹227.11 crore and finance costs of ₹125.45 crore. These expenses help explain why the company remained loss-making despite positive adjusted EBITDA.

Its business segments also tell two different stories.

The fitness services segment generated a positive segment result of ₹210.08 crore in FY26. Meanwhile, the products segment recorded a negative result of ₹57.37 crore. These are segment-level results, not net profits, but they highlight where the business is improving and where challenges remain.

Our assessment: Cult.fit's core fitness services business is showing encouraging operating performance. However, its products business needs further improvement, and the company must manage financing and other expenses to achieve overall profitability.

Can India's Fitness Boom Make Cult.fit Profitable?

According to the Redseer report included in Cult.fit's IPO documents, India's fitness services market was estimated at ₹25,600 crore in 2025 and is projected to reach ₹48,700–53,100 crore by 2030. 

This creates a significant opportunity for Cult.fit, which already had approximately 9.87 lakh paid members as of March 2026. But expansion comes with challenges. New centres require investment, and profitability depends on attracting and retaining enough paying members.

There is also geographic concentration: Delhi-NCR, Mumbai, Bengaluru and Hyderabad contributed approximately 90% of Cult.fit's fitness services revenue in FY26. The company's ability to expand profitably beyond its strongest markets will therefore be worth watching.

Final Take

Cult.fit's SEBI approval brings it closer to becoming a publicly listed fitness company at a time when its financial performance is improving. Revenue is growing, adjusted EBITDA has turned positive and losses are narrowing. However, the company has not yet achieved consistent net profitability.

For investors, the important questions are whether Cult.fit can maintain this improvement while expanding and whether its IPO valuation offers sufficient room for future growth. India's fitness boom gives Cult.fit an opportunity. Turning that opportunity into consistent profits is the challenge that remains. 

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