Cult.fit losses down 48% to Rs 252 crore in FY26

The information is correct. Fitness and wellness unicorn Cult.fit has significantly improved its financial health for the fiscal year ended March 31, 2026, narrowing its net loss by 48% to ₹252 crore, down from ₹481 crore in FY25.

This major financial rebound comes at a critical time, as the Tata Digital and Temasek-backed company has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI to launch an initial public offering (IPO).

1. Key Financial Highlights (FY26)

The narrowing of losses was driven by an explosive surge in consumer demand and tight operational cost controls:

• Operating Revenue Surge: Total operating revenue jumped 41% year-on-year to ₹1,720 crore (up from ₹1,216 crore in FY25).
• Turnaround to Positive EBITDA: For the first time in its corporate history, Cult.fit achieved a major profitability milestone, posting a positive EBITDA of ₹45 crore with an EBITDA margin of 2.62%.
• Decreased Employee Expenses: Employee benefit expenses dropped 12% to ₹305 crore. This drop was heavily aided by a sharp reduction in non-cash ESOP (Employee Stock Ownership Plan) expenses, which fell to ₹22 crore from ₹100 crore a year prior.

2. Revenue Segment Breakdown

Cult.fit’s hybrid model successfully accelerated both its service subscriptions and direct-to-consumer (D2C) product verticals:

Plaintext

[ CULT.FIT FY26 REVENUE MIX ]

  Fitness Subscriptions ──────────────────────────► ₹1,104 Crore (64% of total)
  Cultsport D2C Products ─────────────► ₹523 Crore  (30% of total)
  Other Operating Income ──► ₹93 Crore    (6% of total)

• Fitness Subscriptions (Cultpass & Gym Centers): Maintained its status as the largest cash generator, growing 31% YoY to ₹1,104 crore. The platform now boasts over 9.87 lakh paid active members across 708 physical fitness centers in India.
• Cultsport (D2C Products): Rose to become the fastest-growing vertical, surging 60% to ₹523 crore. The apparel, footwear, and fitness equipment arm shipped more than 4 million units over the fiscal period.

3. The Upcoming IPO Blueprint

With its drastically improved financials, Cult.fit has formalized its plans to hit the public markets:

• The Capital Structure: The IPO comprises a fresh issue of equity shares worth up to ₹950 crore, alongside a secondary Offer for Sale (OFS) of up to 17.86 crore shares by existing stakeholders.
• Investor Offloading: Early backers—including Temasek (via MacRitchie Investments), Tata Digital, Accel, Chiratae Ventures, and co-founder Mukesh Bansal—will par down a portion of their equity via the OFS window. Notably, Eternal Ltd (formerly Zomato), which holds a 6.4% stake, is not participating in the share sale.
• Utilization of Funds: The company plans to deploy ₹217.5 crore from the fresh capital toward lease and rental obligations for its physical gym network, ₹120 crore to clear down outstanding corporate borrowings, and ₹75 crore to fuel localized brand marketing. The remaining capital will fund franchise-led expansions into Tier-II and Tier-III Indian cities.