PhysicsWallah has reported an 18.2% year-on-year increase in revenue from operations to ₹1,242.26 crore in Q2 FY27, while consolidated net profit more than doubled to ₹143.63 crore from ₹69.71 crore a year earlier. The September-quarter performance marks a return to profitability after the edtech company reported a loss in the previous quarter.
Growth was supported by a recovery in NEET-related enrolments, stronger online education revenue and improved cost efficiency. The company also expanded beyond its traditional JEE and NEET preparation business, with courses for school boards, CUET, foundation programmes and regional-language learners contributing a larger share of online enrolments.
PhysicsWallah Q2 FY27 Financial Results
PhysicsWallah’s revenue growth was accompanied by a significant improvement in profitability. The company reported higher EBITDA and lower expense growth compared with revenue growth.
Key financial highlights:
| Financial metric | Q2 FY27 | Q2 FY26 | YoY growth |
|---|---|---|---|
| Revenue from operations | ₹1,242.26 Cr | ₹1,051.24 Cr | 18.2% |
| Net profit | ₹143.63 Cr | ₹69.71 Cr | 2.1X |
| EBITDA | ₹348 Cr | Not specified here | — |
| Adjusted EBITDA | ₹399 Cr | — | — |
| Total expenses | ₹1,105.4 Cr | ₹999.55 Cr | 10.6% |
| Total income | ₹1,334.6 Cr | — | — |
The company generated ₹92.4 crore in other income, taking total income to approximately ₹1,334.6 crore.
One important factor behind the improved profitability was cost control. Total expenses increased approximately 10.6% year-on-year, slower than the 18.2% growth in revenue.
The reported profit also included a ₹20 crore goodwill impairment and a ₹10 crore fair-value gain, which investors should consider when assessing the sustainability of earnings.
Online Business Leads Revenue Growth
PhysicsWallah’s online education business remained its largest revenue contributor.
Online revenue increased 26.4% year-on-year to ₹694 crore during Q2 FY27. The segment benefited from higher enrolments, expanding course categories and growing demand for digital learning programmes.
The online business also delivered a pre-IndAS EBITDA margin of 34.4%, demonstrating its ability to generate stronger operating profitability compared with the offline segment.
The company reported total paid users of approximately 3.86 million, up 7% year-on-year. Daily active users exceeded 4.1 million, while cumulative app downloads crossed 106 million.
PhysicsWallah’s digital-first model allows it to reach students across different parts of India without depending entirely on physical coaching centres.
Offline Revenue Increases 9%
The offline business generated ₹541 crore in Q2 FY27, increasing 9% year-on-year.
PhysicsWallah operated 370 offline centres as of September 30, 2026, compared with 314 centres a year earlier.
The company is continuing to expand its physical presence, although its offline operations remain less profitable than its online business.
During the first half of FY27, the pre-IndAS EBITDA loss in the offline segment narrowed to ₹108 crore from ₹120 crore in the corresponding period last year.
This improvement suggests that the company is gradually improving the economics of its physical coaching network.
However, offline expansion requires investment in infrastructure, faculty, marketing and operating expenses. Managing these costs will remain important as PhysicsWallah opens additional centres.
NEET Enrolments Recover After Admission Delays
The recovery in NEET-related enrolments was an important contributor to the September-quarter performance.
The NEET UG 2026 examination cycle experienced delays following the controversy surrounding the examination process and the postponement of results until July 16.
This disrupted the timing of admissions and collections during Q1 FY27, affecting PhysicsWallah’s performance in the previous quarter.
In Q2, online NEET enrolments increased more than 30% as some of the delayed demand came through.
However, the company indicated that the full admission cycle remained weaker than the previous year. Online NEET enrolments for the complete cycle were approximately 13% lower, while collections were around 7% lower.
Offline NEET enrolments were also approximately 8% below the previous year.
This distinction is important because the quarterly recovery does not necessarily mean the entire NEET business has returned to its earlier growth trajectory.
PhysicsWallah Expands Beyond JEE and NEET
The company is also working to reduce its dependence on traditional engineering and medical entrance examinations.
Categories outside JEE and NEET accounted for 73.8% of online enrolments, compared with 64.8% previously.
Several education categories reported strong growth:
| Category | Q2 FY27 performance | YoY growth |
|---|---|---|
| Boards and CUET | 4.55 lakh enrolments | 130% |
| Foundation courses | 5.70 lakh enrolments | 15% |
| Vernacular courses | 1.23 lakh enrolments | 77% |
| Skills programmes | 1.69 lakh enrolments | 10.3X |
The expansion into school education, competitive examinations and skill development gives PhysicsWallah access to a wider student population.
Its vernacular courses are particularly relevant in a country where students often prefer learning in regional languages.
The company currently offers educational content across 10 languages, helping it reach students who may not be adequately served by English-first digital learning platforms.
South India Emerges as an Expansion Market
PhysicsWallah is increasing its presence in southern India, targeting students in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala.
The company estimates that these states represent an addressable market of approximately 15 million students.
During the first half of calendar year 2026, learners from South India using the PhysicsWallah app increased 32% to 4.1 lakh. Paid learners grew 14% to 1.17 lakh.
The company currently operates 63 centres across the southern region, including centres associated with Xylem Learning.
South India contributed approximately 9% of PhysicsWallah’s H1 FY27 revenue.
The expansion gives the company an opportunity to reach students through regional-language content, local faculty and physical coaching infrastructure.
H1 FY27 Revenue Reaches ₹2,293 Crore
PhysicsWallah’s performance during the first six months of FY27 also showed improvement.
Revenue from operations reached approximately ₹2,292.6 crore, representing growth of 20.7% year-on-year.
The company reported a consolidated profit after tax of approximately ₹55 crore for H1 FY27, compared with a loss of ₹57 crore in the corresponding period last year.
Its treasury balance stood at ₹5,268 crore as of September 30, 2026, including proceeds from its initial public offering.
The strong cash position provides financial flexibility for investments in technology, educational content, faculty and physical expansion.
However, the company will need to balance expansion spending with its objective of maintaining profitability.
The Bigger Picture
PhysicsWallah’s Q2 FY27 results highlight the changing economics of India’s edtech industry. After a period in which several education companies struggled with profitability and customer acquisition costs, PhysicsWallah is demonstrating that online learning can generate meaningful operating margins when supported by scale and cost discipline.
Its strategy is also evolving beyond JEE and NEET preparation. Expansion into school education, CUET, foundation courses, skills training and regional-language learning could help the company diversify its revenue sources and reduce dependence on individual examination cycles.
The improvement in offline performance is another important development. Physical centres remain expensive to operate, but they can strengthen student engagement and provide an additional channel for customer acquisition.
Looking Ahead
PhysicsWallah is expected to continue expanding its online course portfolio while selectively investing in offline centres and regional markets. The recovery in NEET enrolments, growth in non-JEE and non-NEET categories and increasing demand for vernacular education could support revenue growth in the coming quarters. Its substantial treasury balance also provides resources for technology investments and business expansion.
The key challenge will be sustaining profitability while managing the costs of physical expansion and competition in India’s education market. The company must also demonstrate that the improvement in NEET enrolments can translate into a sustained recovery across the full admission cycle. Its Q2 performance is encouraging, but investors will closely monitor enrolment trends, segment margins and cash generation to determine whether the company can maintain its financial momentum.
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