Fitness and wellness platform Cult.fit has reported a strong financial performance for FY26, with operating revenue rising 41.4% year-on-year to ₹1,720 crore while achieving positive EBITDA, marking a significant milestone ahead of its proposed initial public offering (IPO).
According to the company’s Draft Red Herring Prospectus (DRHP), operating revenue increased from ₹1,216 crore in FY25 to ₹1,720 crore in FY26, driven by growth across its fitness subscription and products businesses.
Fitness subscriptions continued to be Cult.fit’s largest revenue contributor, accounting for 64% of total operating revenue. The segment, which includes Cultpass memberships, Cult.fit centres, and platform services, generated ₹1,104 crore in FY26, reflecting a 31% year-on-year increase.
The company’s products business also recorded strong momentum. Revenue from sportswear, gym equipment, and fitness accessories grew 60% to ₹523 crore. Meanwhile, other operating income—including advertising, royalty, centre setup income, and platform fees—contributed ₹93 crore.
Including ₹81 crore of other income, primarily from interest on current investments and other non-operating sources, Cult.fit’s total revenue reached ₹1,802 crore during FY26.
On the profitability front, the company significantly narrowed its losses. Net loss declined 48% year-on-year to ₹252 crore from ₹481 crore in FY25. More importantly, Cult.fit reported positive EBITDA of ₹45 crore, with an EBITDA margin of 2.62%, highlighting improved operating efficiency as the business continues to scale.
While total expenses increased 16% to ₹2,028 crore, the growth was substantially lower than revenue expansion. Cost of materials rose 42% to ₹363 crore, while service costs, primarily trainer and instructor payments, increased 37% to ₹356 crore.
Employee benefit expenses declined 12% to ₹305 crore, largely due to a significant reduction in non-cash ESOP expenses. Advertising and promotional expenses stood at ₹171 crore, while depreciation and amortisation reached ₹227 crore. Legal and professional expenses totalled ₹151 crore, with utility costs at ₹156 crore.
The company also strengthened its balance sheet during the year. As of March 2026, Cult.fit reported current assets of ₹1,260 crore, including cash and bank balances of ₹373 crore. Its expense-to-operating revenue ratio improved, while Return on Capital Employed (ROCE) improved to -10.2%.
The strong financial performance comes as Cult.fit prepares for its public market debut. The company has filed its DRHP with SEBI for an IPO comprising a fresh issue of equity shares worth up to ₹950 crore and an Offer for Sale (OFS) of up to 17.86 crore equity shares by existing shareholders, including Temasek, Tata Digital, Accel, Chiratae Ventures, Kalaari Capital, co-founder Mukesh Bansal, and other investors.
Source: Based reporting by Entrackr, with additional editorial adaptation and analysis.
