Cult.fit IPO

Strengths · 7

• 01Revenue from operations grew 41.55% in FY2026 and 31.17% in FY2025, reaching Rs 1,720.61 crore.
• 02Services segment results turned from a loss of Rs 7.56 crore in FY2024 to a profit of Rs 210.08 crore in FY2026, or 17.54% of services revenue.
• 03Adjusted EBITDA moved from a loss of Rs 140.19 crore in FY2024 to a profit of Rs 144.78 crore in FY2026, a margin of 8.41%.
• 04Paid members rose from 691 thousand in FY2024 to 987 thousand in FY2026, and fitness centers from 588 to 708.
• 05Net cash from operating activities turned positive: Rs 94.12 crore in FY2026 and Rs 11.99 crore in FY2025, against an outflow of Rs 230.73 crore in FY2024.
• 06The Products segment loss narrowed from Rs 122.27 crore in FY2024 to Rs 57.37 crore in FY2026, while product revenue grew to Rs 522.77 crore.
• 07Borrowings stood at Rs 260.76 crore on 31 March 2026, lower than Rs 326.92 crore a year earlier.

Risks · 10

• 01The company is still loss making. Loss for the year attributable to owners was Rs 247.53 crore in FY2026, Rs 479.69 crore in FY2025 and Rs 887.20 crore in FY2024.
• 02Net worth fell from Rs 1,276.87 crore on 31 March 2024 to Rs 669.87 crore on 31 March 2026, and return on net worth was (37.60%) in FY2026.
• 03The company has recorded negative operating cash flows in the past, including Rs 230.73 crore of outflow in FY2024, and some subsidiaries have also made losses.
• 04The offer is not eligible under Regulation 6(1), so it is made under Regulation 6(2) of the SEBI ICDR Regulations as the company does not meet the profitability requirements.
• 05Out of the offer, up to 178,609,200 equity shares are an offer for sale. That money goes to the selling shareholders and not to the company.
• 06General corporate purposes are not yet specified and can be up to 25% of the gross proceeds.
• 07The company has significant goodwill and intangible assets on its balance sheet, which may be impaired. Exceptional items were Rs 24.13 crore in FY2026.
• 08It imports some fitness products, including from China, and depends on a limited number of third-party suppliers.
• 09Fitness centers in four top cities gave 90.44% of fitness services revenue in FY2026, and Bengaluru alone has 247 locations.
• 10Franchises and marketplace gyms are not under full operational or financial control of the company. The auditor's report also carried remarks on back up of books of account and audit trail for FY2026, FY2025 and FY2024.

Cult.fit Limited (formerly Cult.Fit Private Limited and CureFit Healthcare Private Limited) is a fitness and active lifestyle platform. It offers fitness services and active lifestyle products through the Cult.fit app, its website and other online and offline channels. The company launched in Bengaluru in 2016.

The services business covers trainer-led group classes, full-service gyms and at-home online workouts under one platform. As of 31 March 2026 the company had a network of 708 fitness centers, of which 594 were integrated with the Cult.fit app. In FY2026 it served 987,020 members. Services brought in Rs 1,197.83 crore of revenue from operations in FY2026.

The products business sells fitness equipment (indoor and outdoor), recovery products such as massage chairs and massagers, and fitness accessories. It also designs and sells activewear such as apparel and footwear. Products are sold through the app, the website, 29 exclusive branded outlets across four cities and other offline retail channels. Products revenue was Rs 522.77 crore in FY2026 and units sold were 42.39 thousand.

Bengaluru is the largest city, with 247 locations and 385,430 paid members as of 31 March 2026. Hyderabad is second, with 149 fitness centers and 192,916 paid members. The top four cities (Delhi-NCR, Mumbai Metropolitan Region, Bengaluru and Hyderabad) hold 563 fitness centers and gave 90.44% of fitness services revenue in FY2026. The company earned no revenue from outside India in FY2026, FY2025 and FY2024.

The company is professionally managed and has no identifiable promoter under SEBI rules. Mukesh Bansal is Managing Director and Executive Chairman, and Naresh Krishnaswamy is Whole-time Director and Chief Executive Officer. It uses a franchise model and marketplace gyms alongside its own centers.

The industry

The Redseer Report estimates India's fitness and active lifestyle services market at about Rs 256 billion in calendar year 2025. It projects a CAGR of 14-16% to Rs 487-531 billion by calendar year 2030. The fitness and active lifestyle products market is estimated at about Rs 1,157.6 billion in calendar year 2025 and is projected to grow at a CAGR of 14-16% to Rs 2,175-2,349 billion by calendar year 2030. Per capita spend on fitness equipment, apparel and footwear in India is materially lower than in mature economies. In Bengaluru the company puts its market share at 30% to 33%, and in Hyderabad at 17% to 20%, as per the Redseer Report.

Customer concentration: Top 5 customer concentration is not applicable to the company. Fitness centers in the top four cities gave 90.44% of fitness services revenue in FY2026.