Picture this: India's once-thriving gym scene is sweating bullets, grappling with plummeting memberships and financial woes that threaten to bench the entire industry. But why is this happening in a nation bursting with potential for healthier lifestyles? Stick around, because the twists in this fitness saga are about to reveal how convenience is rewriting the rules of the game—and it might just change how you think about getting fit.
Let's start with a simple choice that many urban dwellers face. Option one: You drag yourself out of bed, reserve a spot at a local gym, hop into your vehicle, battle the infamous traffic snarls in a city like Bengaluru, desperately hunt for a parking spot in a hotspot like Indiranagar (fingers crossed!), and then sprint to check in before hitting the weights and breaking a sweat.
Option two: You fire off a quick WhatsApp to your personal trainer, who shows up at the gym right in your apartment building—you simply stroll down to the clubhouse and get straight to the action.
For Ajay (name altered for privacy), a 41-year-old startup CEO in Bengaluru, the decision was a no-brainer. He adored the lively atmosphere, the carefully selected music playlists, the pumped-up instructors, the group classes from brands like HRX, the strength and conditioning programs, and the handy app for booking sessions. Yet, when he relocated to a new flat in Whitefield equipped with a solid gym, a yoga space, and even a squash court, he ditched his Cult.fit membership (a popular fitness chain with multiple locations) and switched gears entirely.
Ajay opted for a freelance trainer who had previously worked at Cult.fit. And here's where it gets interesting—his routine now feels tailored just for him, without the hassle.
Over in Mumbai, Rohit (name changed), a 29-year-old marketing whiz, noticed he hadn't visited his gym in over two months. Tired of the lapse, he decided to revamp his approach. Rather than extend his membership, he repurposed a section of his living room into a mini home gym. Armed with adjustable dumbbells, a kettlebell, a pull-up bar, and a yoga mat, his fitness regimen was revitalized—no more drives, no more queues, no more monthly dues. 'From a financial standpoint,' Rohit explains, 'the upfront cost of setting up at home might seem high, but I calculated that it breaks even within a year when compared to ongoing gym subscriptions.'
This shift underscores a major hurdle for the wave of modern gyms, which are steadily losing their edge. In places like Mumbai, Pune, and Bengaluru, membership renewal rates have dropped sharply—often by 25-30%—since the pandemic, according to Nikhil Rajpuria, president of the Maharashtra Gym Owners Association.
The latest figures from FY24 (fiscal year ending March 2024) paint a grim picture: Cult.fit, a key player in the industry, saw its EBITDA (earnings before interest, taxes, depreciation, and amortization—a measure of operational profitability) worsen, plunging from a deficit of Rs 263.2 crore in FY23 to a staggering Rs 587 crore loss. Other gyms are reporting similar red ink. While FY25 data isn't out yet, if these low renewal trends persist, the outlook looks even bleaker.
Renewals matter immensely due to a classic marketing principle: Retaining existing customers is far cheaper than attracting new ones. And this is the part most people miss—it's not just about money; it's about understanding why folks are ditching gym memberships in a country that desperately needs more active citizens.
Let's dig into the heavy hitters causing this decline.
A primary culprit is the watering down of the gym experience itself. 'Peak-hour overcrowding is a real headache,' notes Rajpuria, who also directs Gyms For All (India), operators of the Transform chain. 'We provide reduced rates for off-peak times, but it doesn't always lure people in. At the end of the day, convenience reigns supreme.'
You'd think expanding into larger, more spacious venues would solve this, right? But in India's sky-high urban real estate market, that's not a practical move. Rajpuria confesses that Transform has downsized: 'Previously, each location spanned at least 6,000 square feet. Now, we're scaling back to 2,500-3,000 square feet. Rental costs in major cities are simply prohibitive.'
Compounding the issue are rising operational expenses—from electricity, taxes, and upkeep—that squeeze profits. Gym-goers hunt for bargains and demand top-notch service, tilting the scales toward unsustainability. Then there's the GST (Goods and Services Tax) overhaul in October, which stripped fitness centers of input tax credits on costs. 'That's like a hefty 18% hike on rentals,' Rajpuria points out. 'Plus, gym gear still carries an 18% GST tag. It's getting tough to keep afloat.' He estimates that most gyms are bleeding money, with operating costs like rent, salaries, and power gobbling up 85% of monthly outlays. Inflation drives these up, but membership fees rarely rise. Members push for deals, unwittingly pressuring gyms to cut corners—perhaps on equipment or staff—to survive.
But here's where it gets controversial: Are members being unreasonable by expecting discounts, or are gyms failing to justify their prices in a competitive market? Some might argue that gyms need to innovate instead of whining about costs—after all, in a value-driven economy, loyalty isn't guaranteed.
A few chains, like Anytime Fitness (a global network with over 5,500 locations worldwide, including 170-plus in India), are experimenting with fresh approaches to address member gripes. 'Crowds during busy times are a major gripe in traditional setups,' says Vikas Jain, MD of Anytime Fitness India. 'Our round-the-clock model sidesteps that—members can train at any hour. This added flexibility transforms the whole vibe.'
Yet, is this innovation enough? As we've touched on, the advent of high-rise living is reshaping workout habits. Modern apartment complexes often include well-fitted gyms, yoga studios, and even functional training areas. And that built-in convenience? It's stealing the show.
Cult.fit, the market frontrunner gearing up for an IPO, didn't reply to our inquiries.
For those not in such complexes, building a home gym is increasingly feasible. Quick-commerce apps like Blinkit and Swiggy Instamart now stock dumbbells. Larger items such as resistance bands, treadmills, and stationary bikes are easy to order online. Retailers like Decathlon let you test gear before buying, ensuring it fits your space and needs.
Accessory brands like Boldfit and Slovic are gaining traction, supplying budget-friendly mats, bands, and accessories for the burgeoning home fitness crowd. In the US, the pandemic boosted brands like Peloton, which raked in $2.7 billion in revenue in 2024. India hasn't seen a single brand dominate to that extent, but the simplicity of DIY setups—paired with free YouTube tutorials—has converted many.
Of course, the home gym trend isn't without pitfalls. 'Most home arrangements are rudimentary—a handful of weights, perhaps a treadmill or bench,' warns Leena Mogre, a seasoned fitness guru. 'A full-service gym provides diverse equipment for targeting various muscle groups effectively. Moreover, many affordable home items, especially imports, lack proper biomechanics and durability.'
Even multifunctional devices from brands like AroLeap X, promising complete workouts in one unit, fall short for experts. Rajpuria compares following YouTube routines to self-medicating: 'Every body is unique. Without knowing the correct machine use or exercises for your physique, it's pointless—and potentially harmful.'
Trainer troubles add another layer to gyms' woes. 'In most gyms, trainers pocket just 30-40% of what clients pay,' explains Mogre, a 63-year-old pioneer and founder of LM Fitness Academy. 'Freelancing pays better, so they bail.'
As trainers build personal brands, clients increasingly hire them directly, bypassing gym renewals. Celebrities sparked this trend ages ago, and now the middle class is onboard. Post-pandemic, trainers capitalized on home equipment booms, upgraded society gyms, and booming online coaching. A private trainer might charge Rs 12,000-15,000 monthly for 12 sessions—meaning just six clients could net up to Rs 90,000 a month for about three hours daily. 'Why slog 10-hour shifts in a gym for peanuts?' Mogre asks.
This exodus hurts gyms doubly: They lose skilled staff, and personal training income, once lucrative, dwindles. 'It's a downward spiral,' Mogre adds. 'Gyms can't hire top talent, memberships slip because trainers depart, and revenues plummet.'
At the heart lies how gyms manage trainers, according to Kalyani Capadia, co-founder of K11 School of Fitness Sciences. 'They offer no job security, perks, or fair pay. Trainers flock to freelancing—for even four clients, earnings surpass gym wages. There are smart ways to recruit and keep trainers, but most treat them as disposable.'
Equipment quality is another sticking point. Premium American brands like Life Fitness, Precor, and Woodway once ruled. Now, gyms often choose cheaper Chinese or Indian options at a third the price. 'A gym might invest Rs 40-50 lakh in local gear,' Rajpuria (who represents Woodway USA in India) says, 'while a competitor with American equipment shells out Rs 1.5-2 crore for similar setups. The ROI on cheaper stuff is quicker, quality notwithstanding.'
For owners, it's survival mode. 'Premium equipment is unaffordable,' Rajpuria notes, 'and upkeep adds to the burden. The market's awash in subpar machines.'
In South Mumbai, Stay Fit Gym thrives on residents from nearby towers without in-house facilities. But even here, owner-trainer Siddesh Raul admits it's tougher: 'Sky-high rents, maintenance, and renewal fears loom large. Sometimes I ponder if focusing on a handful of high-net-worth individuals would've been wiser.'
Nawaz Modi Singhania's Body Art and Shalini Bhargava's JG’S Fitness Centre in Mumbai dodge rental woes by owning their spaces. 'At least 20 gyms have popped up within a kilometer of us,' Bhargava shares. 'Rented ones barely break even and shutter quickly.' To boost loyalty, her center innovates with Zumba, Masala Bhangra, and niche programs. 'We enjoy far higher renewals by evolving,' she says.
Singhania, running a 30-year-old chain, adopts a comprehensive strategy: 'We cover aerobics, strength work, aqua fitness. One-size-fits-all doesn't apply in health.'
Yet, industry insiders concur: The gym sector, formerly flourishing, now teeters on the edge.
Back in Whitefield, Ajay wraps up a serene dawn session. His trainer precisely times his reps—no blaring tunes, no lines. 'It's odd,' he reflects. 'Five years back, I couldn't fathom skipping Cult daily. Now, the commute feels unimaginable.'
His tale reflects a transforming India, where fitness integrates effortlessly into life. The true test? Striking equilibrium between home workout freedom and the guidance, variety, and safety of professional gyms.
But what do you think? Is the home fitness boom a liberating evolution or a risky shortcut that undermines expert oversight? Do gyms deserve more sympathy for their struggles, or should they adapt faster to survive? Share your views in the comments—do you agree that convenience trumps community, or is there a middle ground we've overlooked?
