Fitness tech company Cult.fit has reported a significant milestone by achieving EBITDA positivity in the fiscal year ending March 2026. The Bengaluru-based firm saw its operating revenue surge by 41% year-on-year, reaching Rs 1,720 crore. This financial performance comes as Cult.fit prepares for an upcoming initial public offering (IPO), marking a pivotal moment for both the company and the broader Indian fitness tech landscape.
### Cult.fit’s Growth Trajectory
Cult.fit’s revenue growth in FY26 is primarily driven by its fitness subscriptions, including offerings such as Cultpass and Cult.fit centres, which contributed 64% of the total operating revenue. This segment alone generated Rs 1,104 crore, reflecting a 31% increase from the previous year. Additionally, the sale of sportswear and fitness equipment added Rs 523 crore, a 60% rise compared to FY25. Beyond its core operations, the company earned Rs 81 crore from non-operating income, enhancing its total revenue to Rs 1,802 crore.
On the expenditure side, Cult.fit managed to optimize its expenses, with employee benefits notably declining by 12% to Rs 305 crore, mainly due to reduced non-cash ESOP expenses. However, advertising and promotional costs saw a 15% increase, totaling Rs 171 crore. Despite these expenses, the company has effectively narrowed its net loss by 48% to Rs 252 crore and achieved a positive EBITDA of Rs 45 crore.
### Competitive Landscape and Funding Environment
Cult.fit’s financial turnaround occurs amid a competitive and evolving fitness tech market in India, characterized by players like HealthifyMe and Fittr. This sector has seen increased investor interest, driven by rising health consciousness and digital fitness adoption. Cult.fit’s backers include prominent investors such as Temasek, Tata Digital, and Accel, who have supported the company’s aggressive growth and expansion strategies.
The company’s strategic move to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) underscores its readiness to enter public markets. The proposed IPO will involve a fresh issue of equity shares worth up to Rs 950 crore and an Offer for Sale by existing shareholders. This step is crucial for Cult.fit to solidify its market position and leverage public capital for further growth.
### Implications for India’s Startup Ecosystem
Cult.fit’s journey from significant losses to EBITDA positivity exemplifies the potential for Indian startups to achieve financial sustainability while scaling operations. The company’s performance also highlights the growing importance of digital infrastructure and innovative business models in the fitness industry. As more Indian startups navigate the path to public listings, Cult.fit’s experience offers valuable insights into managing growth, investor expectations, and market positioning.
The success of Cult.fit’s IPO could stimulate further investment in the Indian fitness tech sector, encouraging new entrants and fostering innovation. For founders and investors, the company’s ability to achieve profitability while preparing for a public debut serves as a case study in balancing growth with financial discipline.
As Cult.fit moves towards its IPO, stakeholders will be closely watching its valuation and market reception, which will not only influence the company’s future but also set a precedent for other tech startups eyeing public markets. The outcome of this IPO will likely impact investor confidence and could shape the trajectory of India’s burgeoning tech ecosystem.
