Hrithik Roshan-backed cult fit plans to raise ₹950 crore through a fresh IPO, despite losing ₹251.9 crore in FY26.
Cult.fit had 708 fitness centers across 77 Indian cities as of March 2026. Its annual loss fell from ₹888.5 crore in FY24 to ₹251.9 crore in FY26, a considerable improvement, but when I look at a company preparing to list, I want to know what is driving it.
Cult.fit reported a positive adjusted EBITDA of ₹144.8 crore in FY26. Its financial statements also recorded:
→ ₹227.1 crore in depreciation and amortization
→ ₹125.4 crore in finance costs
→ ₹24.1 crore in exceptional expenses
These costs help explain why its adjusted EBITDA was positive while the company remained loss-making.
There is another number worth examining.
Exceptional expenses fell by ₹308.5 crore between FY24 and FY26. That reduction accounts for much of the change in reported earnings.
Meanwhile, the business generated ₹94.1 crore in operating cash flow in FY26, while investing cash outflows totaled ₹124.2 crore.
The proposed IPO includes:
→ ₹276.6 crore earmarked for new fitness centers
→ ₹217.5 crore for lease, rent, and license payments at existing centers
→ ₹120 crore towards repaying borrowings
Expansion can increase revenue. It also requires money and creates ongoing financial commitments.
I would want to see how much cash these centers generate as they mature and whether that is enough to support further expansion.
Teamfit - Gold's Gym and Cult.fitt's operating performance is improving. The next few years will tell us whether that improvement can translate into sustainable profits and cash generation.
(Disclaimer: For informational purposes only. This is not investment advice.)
