Fitness Tech Insights: Cult.fit Reports Impressive Revenue Growth

Fitness tech company Cult.fit has showcased its resilience by achieving a remarkable 31% growth in FY25, followed by an exceptional performance in the fiscal year ending March 2026. The organization recorded a 41% year-on-year increase in operating revenue, surpassing the Rs 1,700 crore milestone just before its anticipated stock market launch. Notably, the company has also reached EBITDA positivity in this period.

According to the consolidated financial records in its draft red herring prospectus (DRHP), Cult.fit’s operating revenue for FY26 was Rs 1,720 crore, reflecting a growth of 41.4% from Rs 1,216 crore reported in FY25. Fitness subscriptions, which encompass key offerings such as Cultpass, Cult.fit centres, and platform services, remained the primary source of revenue for the company, contributing 64% to the overall operating revenue. This segment saw a 31% year-on-year increase, amounting to Rs 1,104 crore in FY26.

In addition to subscriptions, revenue from product sales, including sports apparel for both men and women as well as gym equipment, surged by 60% to Rs 523 crore during the fiscal period. Other forms of operating income, such as advertising revenue, royalty payments, income from centre setup, and platform fees, contributed an extra Rs 93 crore to total earnings.

Cult.fit also secured Rs 81 crore from additional income sources, which included interest from current investments and various non-operating streams, raising the total revenue for FY26 to Rs 1,802 crore.

On the expenditure front, the cost of materials represented the largest cost category, rising by 42% year-on-year to Rs 363 crore in FY26. This was followed by service costs, primarily payments made to trainers and fitness professionals, which increased by 37% to Rs 356 crore. Conversely, employee benefit costs decreased by 12% to Rs 305 crore, a drop from Rs 347 crore in FY25, mainly due to a significant reduction in non-cash ESOP expenses, which fell to Rs 22 crore from Rs 100 crore the previous year.

Advertising and promotional expenditures increased by 15% to Rs 171 crore in FY26. Depreciation and amortisation costs were recorded at Rs 227 crore, with legal and professional costs, alongside utility expenses, amounting to Rs 151 crore and Rs 156 crore, respectively. Other overhead expenses, which included IT, travel, and various incidental costs, led to a total expense rise of 16% year-on-year to Rs 2,028 crore in FY26.

Backed by a significant 41% increase in operating revenue, Cult.fit substantially reduced its losses in FY26. The net loss for the company decreased by 48% to Rs 252 crore, a decline from Rs 481 crore in FY25. More crucially, Cult.fit hit a significant profitability benchmark by attaining a positive EBITDA of Rs 45 crore.

The EBITDA margin for the Temasek-backed company stood at 2.62%, while its Return on Capital Employed (ROCE) enhanced to -10.2% in FY26. Additionally, the expense-to-operating revenue ratio improved to Rs 1.18, a marked improvement from the previous fiscal year. As of March 2026, Cult.fit reported current assets totalling Rs 1,260 crore, including cash and bank balances of Rs 373 crore.

Cult.fit has submitted its DRHP to SEBI for its intended initial public offering (IPO), which includes a fresh equity issue valued at up to Rs 950 crore and an Offer for Sale (OFS) amounting to up to 17.86 crore equity shares by current shareholders such as Temasek, Tata Digital, Accel, Chiratae Ventures, Kalaari Capital, co-founder Mukesh Bansal, among others.