Cult.fit Prepares for IPO After Turning EBITDA Positive

Cult.fit, a fitness chain headquartered in Bengaluru, is preparing for a stock-market debut after achieving EBITDA positivity. Founded in 2015, the company has expanded to 712 centres and reported revenue of ₹1,700 crore.  

It has engaged Goldman Sachs and Morgan Stanley for its initial public offering (IPO), with a draft prospectus for a ₹3,500-4,000 crore issue expected in early July 2026. 

Cult.fit's Journey to Profitability 

Founded in 2015 by Rishabh Telang, Cult.fit introduced a machine-free fitness concept centred on martial arts, yoga, and outdoor activities. Mukesh Bansal, a serial entrepreneur, acquired a controlling stake in 2016, expanding the platform.  

Naresh Krishnaswamy, who joined the company in 2018 and became CEO in 2023, has overseen its growth to 712 centres, including franchise-operated formats. Cult.fit also owns Indian operations of Gold's Gym and Fitness First and operates Cultstore, selling athleisure wear, footwear, and fitness equipment. 

Financial Recovery and Expansion 

The pandemic impacted Cult.fit significantly, with revenue dropping to ₹161.4 crore in FY21 and a ₹671 crore loss.  

However, through franchise-driven expansion and growth in its products business, the company reported a 31% revenue increase to ₹1,216 crore in FY25, with EBITDA losses narrowing from ₹209 crore to ₹36 crore.  

Cult.fit turned EBITDA positive in the final quarter of FY26, with revenue surpassing ₹1,700 crore, marking a 40% increase from the previous year. 

Read More: Zerodha Eyes to Enter Investment Banking, Files for SEBI Merchant Banking Licence! 

Expansion and Technological Integration 

Cult.fit aims to expand to 100 cities within 5-6 years, leveraging the Cult Neo format with annual memberships priced at ₹10,000-12,000.  

The company plans to open more exclusive brand outlets beyond its current 29 locations. Cult.fit is also integrating AI into customer-facing products and back-end operations, enhancing customer support and gym operations analysis.  

Over 60% of employees use AI tools like Claude and Codex, improving productivity. 

Conclusion 

Cult.fit's journey from a ₹671 crore loss in FY21 to achieving EBITDA positivity in FY26, with revenue reaching ₹1,700 crore, underscores its recovery and growth. The company operates 712 centres and plans further expansion across India. 

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.