Cult.fit, the Bengaluru-based fitness and active lifestyle platform, has received observations from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), moving the company a step closer to entering the stock market.
The proposed public issue comprises a fresh issue of shares worth up to ₹950 crore and an offer for sale (OFS) of up to 17.86 crore equity shares by existing investors. The company has not yet announced the IPO’s price band or subscription dates. SEBI’s observations allow Cult.fit to proceed with the next stages of the listing process, subject to the remaining regulatory requirements.
The IPO is expected to help Cult.fit strengthen its financial position, expand its fitness centre network and invest in its sportswear business. The development comes as demand for organised fitness services grows in India, with consumers increasingly spending on gym memberships, workout programmes and fitness products.
Cult.fit plans to use the proceeds from the fresh issue to repay or prepay certain borrowings and finance the expansion of its fitness centres. The funds will also support capital expenditure, lease-related payments for existing centres, marketing and brand promotion, and general corporate requirements.
A part of the money is earmarked for Cultsport, its subsidiary that sells sportswear and fitness products. The investment is intended to support the opening of exclusive Cultsport outlets, helping the company strengthen its presence beyond gym memberships and digital fitness services.
The proposed issue also includes an offer for sale by existing shareholders. Unlike a fresh issue, in which the company receives the money raised, proceeds from an OFS go to the investors selling their shares. The final offer size will depend on the terms announced closer to the IPO.
Investors participating in the sale include Tata Digital, MacRitchie Investments, Fitness First Luxembourg, IDG Ventures India Fund III, Chiratae Trust, Schroders Capital Private Equity Asia Mauritius IV, Accel India V and Twenty Nine Capital Partners. Cult.fit co-founder Mukesh Bansal is also among the individual shareholders named in the proposed offer.
Cult.fit operates fitness centres under formats including Cult Elite and Cult Neo. Customers can access workout facilities and fitness services, while the company also sells apparel, footwear and exercise equipment through its digital platforms and retail channels.
As of March 31, 2026, the company operated 708 fitness centres across 77 Indian cities. Its fitness services business had more than 9.87 lakh paying members during the financial year 2025-26. The company also shipped more than 42 lakh fitness products during the year, highlighting the contribution of its products business alongside memberships.
The company has built its business around a combination of physical centres and digital access. This allows it to reach customers through gym memberships, online channels, corporate partnerships and direct sales at its centres.
The proposed listing could provide additional capital to support its expansion plans while giving public-market investors an opportunity to participate in India’s organised fitness and wellness sector.
Cult.fit reported revenue from operations of ₹1,720.61 crore in FY26, up 36.26% from ₹1,265.74 crore in FY25. Revenue had stood at ₹926.66 crore in FY24, indicating growth over the three-year period.
The company also reported an improvement in its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin. The measure rose to 8.41% in FY26 from minus 2.76% in the previous financial year.
The improvement suggests that the company has made progress in strengthening operating performance as its business has expanded. However, adjusted EBITDA is not the same as net profit, and investors will need to examine the company’s full financial disclosures, debt levels and future spending plans before assessing its prospects.
SEBI’s observations mark an important step, but they do not mean that the IPO will open immediately. Cult.fit will need to complete the remaining procedures, update its offer documents where required and announce the issue details, including the price band and dates.
Axis Capital, Goldman Sachs India Securities, Jefferies India, JM Financial and Morgan Stanley India are among the book-running lead managers for the proposed IPO. The shares are expected to be listed on the BSE and the National Stock Exchange.
Cult.fit’s public issue will be watched closely as investors assess whether its expanding membership base and improving operating margins can translate into sustainable financial performance. Its ability to manage costs, repay debt and grow its fitness centre and sportswear businesses will be important factors in the company’s next phase.
The SEBI clearance brings Cult.fit closer to the public markets. The next test will be how the company presents its growth plans and financial performance to prospective investors ahead of the eventual listing.