Edtech major PhysicsWallah (PW) delivered a strong financial performance in FY26, sharply reducing its losses while continuing to scale both its online and offline businesses. The company’s latest earnings suggest that the once start-up challenger is steadily evolving into one of India’s most financially disciplined education platforms.
The Noida-based company, which made its stock market debut in November last year, reported a significant improvement in profitability metrics despite continued investments in expansion and infrastructure.
Credits: Entrackr
Losses Shrink Dramatically
PhysicsWallah reported a net loss of Rs 69.1 crore in the fourth quarter of FY26, marking a steep 76 percent decline from the Rs 289.3 crore loss it posted during the same quarter last year.
While the company had briefly turned profitable in the previous quarter with a net profit of Rs 102.3 crore, the latest quarter saw a return to losses due to continued spending on growth initiatives and operational scaling. However, the overall trend points toward improving financial efficiency.
For the full financial year FY26, PhysicsWallah’s losses narrowed to just Rs 24.3 crore, compared to Rs 243.3 crore in FY25 — a remarkable 90 percent reduction year-on-year.
The sharp improvement indicates that the company is inching closer to achieving sustainable profitability, something that many Indian edtech firms have struggled to accomplish in recent years.
Revenue Growth Remains Strong
Alongside improving profitability, PhysicsWallah continued to post strong revenue growth.
Revenue from operations for the March quarter stood at Rs 918 crore, up 51 percent from Rs 609.6 crore a year earlier. Although quarterly revenue dipped sequentially from Rs 1,082.4 crore in the December quarter, the annual growth remained robust.
For the full year FY26, the company reported revenue of Rs 3,899.5 crore, significantly higher than the Rs 2,886.6 crore recorded in FY25.
The growth reflects continued demand for affordable online education, test preparation programmes, skilling courses, and hybrid learning models across India.
Hybrid Strategy Driving User Growth
A major contributor to PhysicsWallah’s momentum has been its aggressive hybrid expansion strategy, combining online reach with physical coaching centres.
The company said its paid user base rose to 5.34 million during FY26, up from 4.46 million in FY25. Online unique transacting users climbed to 4.87 million, demonstrating strong engagement on the platform despite rising competition in the edtech sector.
Offline operations also witnessed rapid growth. PhysicsWallah’s offline enrolments increased to 470,000 students during the year as the company expanded deeper into smaller cities and regional markets.
PW further strengthened its physical presence by expanding to 353 centres across India, reinforcing its ambition to become a nationwide education ecosystem rather than just a digital platform.
The hybrid approach has emerged as a key differentiator for the company, especially at a time when students increasingly prefer a blend of online flexibility and offline mentorship.
Expenses Rise, But At a Slower Pace
In comparison to Rs 964 crore during the same period last year, PhysicsWallah’s overall expenses for the March quarter increased by 9% year over year to Rs 1,055.2 crore.
Nonetheless, the company was able to increase operating leverage and cut losses because the rate of expense growth was far slower than that of revenue growth.
Expenses also rose sequentially from Rs 979.9 crore in the preceding quarter, indicating expenditures in offline center development, faculty acquisition, technology infrastructure, and expansion.
The decreasing losses show that PhysicsWallah is scaling operations and controlling expenses more effectively in spite of these investments.
Investors Watch the Next Phase Closely
PhysicsWallah’s shares on the BSE ended May 27 at Rs 111.95 per share, a slight decline of 0.09 percent after the earnings report.
The company’s strengthening fundamentals are likely to draw investor attention as the edtech industry as a whole tries to rebound from years of slowdown, layoffs, and profitability concerns, even as the market reaction remained mild.
PhysicsWallah is moving from hypergrowth phase to operational maturity, as seen by its FY26 performance. The company seems committed to creating a long-term, scalable education business in India’s quickly changing learning sector, as evidenced by its growing hybrid footprint, increasing revenues, and improved profitability.
