Edtech company PhysicsWallah is targeting full-year profitability by the fiscal year 2026-27 (FY27), driven by new online categories and a robust offline expansion strategy, according to its CEO and co-founder, Alakh Pandey.
“We want to grow sustainably. In terms of growth, you will see an improvement in both profitability and revenue. Both numbers will rise over the next three to four years because the total addressable market (TAM) is huge,” he said during a post-earnings call.
PhysicsWallah clocked an operating revenue of Rs 1,051.2 crore in the September quarter of FY26, up 26.3% from Rs 832.2 crore in the same quarter in the previous year, driven by an increase in unique paid users and offline student enrolments.
On the back of healthy topline growth, the newly listed edtech startup’s profit after tax (PAT) surged 70% year-on-year (YoY) to Rs 69.7 crore in Q2FY26 from Rs 41.1 crore in Q2FY25. The company aims to repeat this performance in the third quarter, which, traditionally, is its strongest.
Moving Beyond Core JEE and NEET Segments
scale,”In its shareholders’ letter, PhysicsWallah stated that it sees significant opportunities beyond its core JEE and NEET segments, particularly across categories such as civil services, foundational courses, government exams, defence courses, commerce, CA, MBA, and upskilling. Even in the JEE and NEET categories, its market penetration remains less than 20%, pointing to significant headroom for growth.
The edtech company further stated that its next major growth levers lie in mass-market segments, such as state boards and vernacular-language categories. “While the education company has traditionally been strongest in the Hindi-speaking belt, it is now poised for meaningful expansion across non-Hindi regions, unlocking the next wave of nationwide scale”, said the company.
“On the back of increased smartphone and internet penetration, we have already disrupted the prices to a large extent. We began offering live learning courses for preparation of IIT and NEET exams for Rs 4,000 per year, and the cost remains the same to date,” said Prateek Boob, co-founder of PhysicsWallah, in the call with analysts.
While the average collection per user (ACPU) in online channels increased by only 8% in the first six months of FY26, the company has delivered a growth of 30% during this period, he noted. ACPU rose to Rs 3,918 in H1 FY26 from Rs 3,624 in the year-ago period.
Offline Expansion Strategy of PhysicsWallah
PhysicsWallah continues to strengthen its offline presence to fuel its growth. Over the past year, the company opened 128 centres, taking the total tally to 314. Going forward, it plans to further expand its offline business, which accounted for Rs 478.7 crore of the total operating revenue in Q2FY26.
“We are entering FY27 with a disciplined offline expansion strategy that will materially strengthen our national footprint. We have already…
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