PhysicsWallah Q3 Results: Profit Up 10%, Revenue Grows 34%

Edtech unicorn PhysicsWallah Ltd (PW) reported a strong financial performance for the third quarter, with net profit rising 9.72% year-on-year to ₹100.5 crore, compared with ₹91.6 crore in the same period last year.

The company’s revenue for Q3 surged 33.7% YoY to ₹1,082.4 crore, up from ₹809.6 crore in the corresponding quarter of the previous year, driven by robust enrolment growth across both online and offline channels.

EBITDA Growth and Margin Performance

Operating Profit Remains Strong

EBITDA for the quarter stood at ₹236.3 crore, marking a 28.7% increase from ₹183.6 crore a year ago. The EBITDA margin came in at 21.8%, slightly lower than 22.7% reported in the year-ago quarter.

On a Pre-IndAS basis, EBITDA for Q3 FY26 grew 42% YoY to ₹218.8 crore, with margins expanding to 20.2% for the quarter, reflecting operating leverage despite continued investments in expansion.

Strong Momentum in Online and Offline Enrolments

Online Business Gains Scale

PhysicsWallah’s online segment continued to gain traction, recording over 3.96 million enrolments in the nine months ended December 31, 2025, representing a 20% increase compared to the same period last year.

Paid users in the online channel rose to 3.96 million, up from 3.30 million a year ago, highlighting sustained demand for PW’s digital learning offerings.

Offline Enrolments Rise Sharply

Offline enrolments grew 36% year-on-year, supported by a rapid expansion of PW’s physical presence. As of December 31, 2025, PhysicsWallah operated 318 centres nationwide, compared with 186 centres in 9M FY25.

Offline student enrolments reached 0.41 million, up from 0.30 million in the same period last year.

9M FY26 Financial Performance

Revenue for 9M FY26 grew 31% YoY, driven primarily by an increase in unique paid users from 3.60 million to 4.37 million.

Profit after tax (PAT) for 9M FY26 stood at ₹45 crore, after adjusting for one-time expenses of ₹23.6 crore.

The company also reported strong cash flow from operations of ₹642.9 crore for 9M FY26, compared with ₹506.9 crore for the full year FY25.

Robust Balance Sheet and Capital Position

As of December 31, 2025, PhysicsWallah’s treasury stood at ₹5,054.4 crore, including IPO proceeds, underlining the company’s strong liquidity position and capital efficiency.

Expanding Course Portfolio and User Engagement

PhysicsWallah currently offers 16 categories of courses, having added three new categories in Q3 FY26. The platform serves a highly engaged user base, with:

• Daily average users exceeding 3.4 million

• Average engagement time of over 106 minutes

• 3.96 million unique online transacting users

• 0.41 million offline students

The company employs 6,807 faculty members, including employees and consultants, and has built a social media community of over 134 million subscribers across platforms.

Growth Drivers and Future Focus

PW’s growth is being driven by an expanding user base and a diversified portfolio that includes AI-powered products, value-added services, crash courses and offline batches across segments such as Civil Services Examinations, government exams and Chartered Accountancy.

Despite achieving only around 2% penetration of India’s total online education market, the company sees significant long-term growth potential.

PhysicsWallah Share Price Movement

Shares of PhysicsWallah Ltd ended at ₹121.70 on the BSE on February 5, down ₹0.25 or 0.21%, following the announcement of the Q3 results.