Customers browse products in a Cultsport store in India.
Cult.fit, the Indian fitness startup, is demonstrating significant financial improvements as it prepares for its Initial Public Offering (IPO). In fiscal year 2026 (FY26), the company reported a 41.6% year-on-year increase in operating revenue, reaching ₹1,720.6 crore. Concurrently, its consolidated net loss narrowed by 48% to ₹251.9 crore, down from ₹480.6 crore in the previous fiscal year. This shift indicates a move towards profitability, a crucial factor for attracting investors in the current market climate.
The company’s pre-IPO filings, including its draft red herring prospectus (DRHP), highlight a strategic focus on strengthening its financial core after years of prioritizing expansion. This includes a reduction in EBITDA losses and a sharp improvement in cash generated from operations. These metrics suggest that Cult.fit’s growth is translating into healthier unit economics, rather than simply increasing cash burn.
Operating Leverage and Diversification
Cult.fit has historically faced challenges in converting its strong user acquisition and revenue growth into sustainable profitability. However, FY26 data shows a narrowing gap, with operating expenses growing at a slower pace than revenue. Employee benefit expenses, for instance, decreased to ₹305.2 crore in FY26 from ₹347.4 crore a year earlier, despite business growth, pointing to effective cost controls.
The company’s capital allocation strategy is also evolving. Instead of aggressive nationwide expansion, Cult.fit is now focusing on optimizing the utilization of its existing asset base. This approach is supported by the growth of its Cultsport brand, which offers sports accessories, apparel, footwear, and connected fitness devices. This diversification into products provides a different economic profile compared to its core fitness center business, allowing for incremental revenue generation without a proportional increase in fixed infrastructure costs.
Path to Profitability and Market Opportunity
The Cultsport brand is emerging as a significant revenue driver, enabling Cult.fit to monetize users across multiple categories. The company is expanding its offline retail presence, with plans to reach 50 exclusive Cultsport stores this year, supported by a ₹23.4 crore allocation in its IPO filings for store expansion.
Cult.fit’s IPO is particularly noteworthy as it aims to be the first organized gym and fitness center chain in India to list on the public markets. This move is set against a backdrop of significant growth potential for India’s fitness industry. Deloitte projects the organized fitness market to more than double to ₹37,700 crore by 2030, with fitness facility memberships expected to increase substantially. Investors will be closely watching Cult.fit’s ability to sustain its improved financial performance and execute its diversified growth strategy, which will set a benchmark for future consumer wellness startups seeking capital market access.
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