Future Outlook: Physicswallah sees 30% business growth for Q3; Expansion, financials and more

Synopsis: PhysicsWallah​‍​‌‍​‍‌​‍​‌‍​‍‌ is under the spotlight as the management cited the third quarter might be the company’s best one and probably yield a profit, mainly due to fast offline growth and lower marketing expenses. 

The shares of one of the leading edtech companies in India are in focus after its top executives have cited strong updates regarding its business. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 40,179 crore, the shares of Physicswallah Ltd made a day high of Rs 145.70 per share, up 5 percent from its previous day’s closing price of Rs 138.55 per share. Post its listing on the stock exchange, the stock has given a return of 4 percent.

Management Comments

PhysicsWallah shares are in focus after its management highlighted a robust future for its edtech organisation. According to PhysicsWallah’s management, Q3 is anticipated to be their best quarter of the year, and they are certain that they will turn a profit. 

Additionally, they reported that the offline business is expanding steadily and that they anticipate it will continue to grow at a sustainable rate of 25–30 percent.  This indicates that their offline and hybrid learning formats are in high demand.

In terms of expenses, management directed that marketing expenditures be reduced to 8–9 percent of revenue from 9.6 percent the previous year, demonstrating improved effectiveness and stricter control.  In keeping with their aggressive yet methodical offline growth strategy, PhysicsWallah intends to open 75 new offline centers next year, including 45 Vidyapeeth, 10 Pathshala, and 20 other formats. Over the following three years, they hope to open about 70 centers annually.

Q2 FY26 Highlights

Physicswallah Ltd reported a revenue from operations of Rs 1,051 crore in Q2 FY26, a growth of 26 percent as compared to Rs 832 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 24 percent from Rs 847 crore.

Regarding its profitability, it reported a net profit of Rs 70 crore in Q2 FY26, a robust growth of 71 percent as compared to Rs 1,066 crore in Q2 FY25. However, on a quarter-on-quarter basis, it reported a sharp turnaround from a loss of Rs 127 crore. 

PhysicsWallah’s​‍​‌‍​‍‌​‍​‌‍​‍‌ revenue expansion is mainly attributed to a significant increase in the number of paid users. The total number of paid users went up from 2.99 million to 3.62 million, which indicates that the demand is quite strong. The number of online paid users reached 3.22 million from 2.68 million last year; thus, a digital platform seems to be the winner this time. Likewise, offline enrolments have gone up from 0.31 million to 0.40 million, which means that both online and offline channels are growing together, and the company’s overall momentum is getting stronger.

The company has made a strong statement in terms of its operations in the first half of FY26. PW did a great job in expanding its offline centre network from 186 to 314 centres within a short span of one year. Online transacting users increased by 20 percent to 3.22 million, whereas offline enrolments went up by 26 percent to 0.40 million, thus showing that there is a healthy traction in both formats. 

PhysicsWallah’s scale and reach continue to expand at a very high speed, as evidenced by 6,643 faculty members, 3.5 million daily active users, an average of 103 minutes of engagement, and a social community of 125 ​‍​‌‍​‍‌​‍​‌‍​‍‌million.

With​‍​‌‍​‍‌​‍​‌‍​‍‌ the company’s financials getting better, an increasing number of users, and a solid offline expansion, PhysicsWallah appears to be heading the right way. Although the management is looking forward to a profit-making Q3, the real result will still be very much a function of the further progress of this momentum next ​‍​‌‍​‍‌​‍​‌‍​‍‌month.

PhysicsWallah is one of India’s fastest-growing edtech and hybrid learning companies, known for offering affordable, high-quality education to millions of students. Founded by Alakh Pandey, the platform has expanded from online classes to a vast network of offline centres, delivering competitive exam coaching with strong engagement, scalable operations, and a rapidly growing learner community.

Written by Satyajeet Mukherjee

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