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India’s fitness landscape is getting a major stock market upgrade. The country’s largest fitness services provider has officially taken its first step toward going public. The company has filed its Draft Red Herring Prospectus (DRHP) with the market regulator.
Cult.fit IPO, a highly anticipated IPO, aims to infuse significant capital into the structured wellness market. With an offering of public shares, the Bengaluru-headquartered fitness platform eyes to turn regular fitness enthusiasts into long-term equity partners.
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Key Takeaways
- Fresh Issue: The company plans to raise up to ₹950 crore through a fresh issue of new equity shares.
- OFS: With the Offer for Sale (OFS) included, market reports estimate the total issue could reach ₹3,500 crore to ₹4,000 crore.
- Vast Network: The brand operates 708 fitness centres across 77 Indian cities with nearly 1 million paid members.
- Rise in Revenue: Revenue jumped over 36% year-on-year to ₹1,720.61 crore in FY26, while net losses narrowed significantly to ₹251.9 crore.
- Selling By Leading Backers: Prominent early investors and co-founder Mukesh Bansal will sell a combined total of up to 17.86 crore shares via the OFS route.
Decoding the Issue Structure
1: What is a stock?
The primary documents reveal that the public offering consists of two distinct components. The first part is a fresh issue of shares worth up to ₹950 crore. This fresh capital will flow directly into the company’s bank accounts to fund its future business operations.
The second part is an Offer for Sale (OFS) of up to 17.86 crore existing equity shares. Through this route, early institutional backers and individual stakeholders will trim their equity holdings. The list of entities selling their stakes includes prominent investment funds alongside company co-founder Mukesh Bansal.
Notably, Bollywood superstar Hrithik Roshan is also set to offload a portion of his shares. The company will not receive any financial capital from the shares sold under the OFS segment.
The company is also exploring a pre-IPO placement of shares worth up to ₹190 crore. If this private placement happens before the final public launch, the size of the fresh issue will decrease by that exact amount.
Where will the ₹950 Crore Go?
Companies going public must state how they intend to utilize the new capital. For the Cult.fit IPO, the allocation strategy focuses on expanding physical footprints and restructuring liabilities.
The fitness platform has earmarked ₹276.6 crore specifically for expanding its corporate gym infrastructure. It plans to set up multiple new premium hybrid centres and standard gym spaces. Another major chunk of ₹217.5 crore is set aside to meet lease, rent, and license obligations for existing fitness centres.
To improve its balance sheet, the management will use ₹120 crore to repay or prepay its current borrowings. Marketing and brand promotional activities will receive an investment of ₹75 crore. Lastly, about ₹23.4 crore will go into its retail sportswear subsidiary to launch dedicated physical retail outlets. The remaining cash will manage general corporate purposes.
Financial Performance: Rising Revenues, Falling Losses
Evaluating financial sheets is crucial before investing in any public offering. The company’s latest financial report for the fiscal year 2026 shows clear signs of operational recovery.
Operating revenue rose by 36.26% to touch ₹1,720.61 crore in FY26. This is a rise from ₹1,262.80 crore in the previous year. Going through the split in operations shows that fitness services contribute to roughly 70% of total revenue. The remaining 30% comes from the sale of athletic products and activewear.
| SUMMARY OF FINANCIAL METRICS | ||
| Metric | FY25 | FY26 |
| Revenue from Operations | ₹1,262.80 Cr | ₹1,720.61 Cr |
| Net Loss | ₹480.80 Cr | ₹251.90 Cr |
| Adjusted EBITDA Margin | -2.76% | +8.41% |
The company’s bottom-line numbers are also showing steady progress. In FY26, net losses narrowed down to ₹251.9 crore. This is a major reduction compared to the ₹480.8 crore loss recorded in FY25.
The best part is that the company’s adjusted EBITDA margin turned positive. It’s a sharp jump from negative 2.76% to positive 8.41%. Going by the statement of internal sources, the management team is currently aiming for full net profitability by the fiscal year 2028.
Market Footprint and Growth Potential
As of March 31, 2026, the company operates a vast network of 708 fitness centres across 77 Indian cities. This vast network includes owned premium gyms, group fitness spaces, franchised workout zones, and legacy centers. The active customer database stands strong with over 9.87 lakh paid active fitness members.
The company uses a smart multi-channel ecosystem. It mixes digital access via a mobile application with physical training hubs. Within a single application, it is very much possible for consumers to book local workout sessions, buy activewear, or track fitness routines. This model allows the fitness chain to scale up with absolutely no duplication of customer acquisition costs.
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Know moreStrengths and Risks for Retail Investors
Every public listing presents unique growth opportunities along with certain underlying challenges.On the positive side, the upcoming Cult.fit IPO enjoys massive brand recall in urban India. It remains the undisputed leader in organized fitness chains.
With a technology-led subscription model, the company ensures predictable cash flows from recurring monthly and annual renewals. In addition to that, rising disposable income and an increasing focus on preventative healthcare create strong macro tailwinds for this sector.
However, investors must keep a few clear risks in mind. The brand remains deeply dependent on consumer spending in major tier-1 cities. It faces constant competition from standalone local gyms and unorganized premium fitness studios.
Furthermore, the athletic products division continues to operate at a segment loss. The overall company is not yet net-profitable. Prospective buyers will need to monitor how fast the company can convert operational growth into true net profit.
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The Path Ahead
The upcoming Cult.fit IPO does not have a direct listed peer on the Indian stock exchanges. This unique position makes it a historic event for the commercial wellness sector. The primary focus now shifts to getting regulatory approvals from the market regulator.
The lead merchant bankers will monitor market conditions closely before announcing the final launch dates and pricing bands. For Indian equity markets, this listing will serve as a primary test case for tech-enabled fitness business models.
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Know moreFrequently Asked Questions
What is the total size of the Cult.fit IPO?
The fresh issue size is capped at up to ₹950 crore. The total offer value including the OFS component is estimated to be between ₹3,500 crore and ₹4,000 crore.
Who are the major shareholders selling their stakes?
Key institutional backers like Temasek, Tata Digital, Accel, and Chiratae Ventures are selling shares. Co-founder Mukesh Bansal and celebrity investor Hrithik Roshan are also offloading partial stakes.
Is Cult.fit currently a profitable company?
No, the company is not yet net-profitable. However, losses have come down to ₹251.9 crore in FY26, and its adjusted EBITDA margin turned positive at 8.41%.
How will the company use the IPO funds?
The money will be used for funding new fitness centres, lease payments, debt repayment, brand marketing, and retail expansions for the activewear division.
How many centers does the company currently operate?
As of March 31, 2026, the brand runs 708 physical fitness centres across 77 Indian cities.
Who is managing the public issue?
Leading global and domestic investment banks like Axis Capital, Goldman Sachs, Jefferies, JM Financial, and Morgan Stanley are managing the process.
When will the IPO open for subscription?
The opening date and price bands will be announced once the market regulator clears the filed draft papers.
