Cult.fit receives Sebi approval for proposed IPO

Cult.fit advances towards its IPO after receiving Sebi observations, planning to repay debt, expand fitness centres and strengthen its sportswear business.

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 950 crore and an offer for sale (OFS) of up to 17.86 crore equity shares by existing shareholders. The company has not specified the price band or issue dates in the details provided.

Cult.fit plans to use the proceeds from the fresh issue to repay or prepay certain borrowings, fund capital expenditure for new fitness centres, invest in its subsidiary Cultsport for new exclusive brand outlets, meet lease-related payments for existing centres, and finance brand marketing and business promotion. A portion will also be allocated to general corporate purposes.

The company operates fitness centres under its Cult Elite and Cult Neo formats and sells fitness products, including apparel, footwear and equipment, through its digital platforms and retail outlets.

As of March 31, 2026, Cult.fit had 708 fitness centres across 77 cities in India, four times the scale of the next-largest player, according to a Redseer report cited in its IPO documents. Its fitness services business had 987,020 paying members in the financial year 2026, while its fitness products business shipped more than 4.23 million products during the year.

The company’s revenue from operations rose 36.26% year-on-year to Rs 1,720.61 crore in fiscal 2026 from Rs 1,265.74 crore in fiscal 2025. Revenue stood at Rs 926.66 crore in fiscal 2024.

Cult.fit’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin improved to 8.41% in fiscal 2026 from -2.76% in fiscal 2025, according to the company’s disclosures.

The business derives around 70% of its revenue from fitness services, with the remaining 30% coming from fitness products, offering a mix of membership-led and transactional revenue streams.

The company operates in a fitness services market that Redseer estimates was worth around Rs 25,600 crore in calendar year 2025. The market is projected to expand to Rs 48,700 crore-Rs 53,100 crore by 2030, driven by rising disposable incomes, greater health awareness and wider access to organised fitness services.

Axis Capital, Goldman Sachs (India) Securities, Jefferies India, JM Financial and Morgan Stanley India are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the National Stock Exchange.