In its second quarter of FY26 (ended September 2025), PhysicsWallah reported a net profit of ₹69.7 crore, representing a sharp 70% year-on-year rise compared with ₹41.1 crore in Q2 last year.
This comes as the company’s first quarterly results since its public listing last month — and marks a major milestone for the ed-tech startup.
Key financials: Revenue, margins, and cash flow
- Revenue from operations in Q2 stood at ₹1,051.2 crore, up 26% YoY from ₹832.2 crore in Q2 FY25.
- Adjusted EBITDA margin improved to 26% (from 23% a year earlier), reflecting improved operational efficiency.
- The profit margin (PAT margin) for the quarter was about 7%, showing healthy bottom-line growth.
- According to the company, its paid user base (online + offline) continues to grow, supporting the revenue and profit momentum.
Why profit surged — What drove performance
✅ Hybrid model: Online + offline expansion
PhysicsWallah’s mix of online courses and offline/hybrid learning centres helped boost enrolments and revenue. This diversified model appears to strengthen resilience and growth capacity.
📈 Increased scale and operating leverage
With rising student numbers and optimisation in costs, the firm seems to have leveraged economies of scale — helping improve EBITDA margin and convert top-line growth into stronger net profit.
🏗 First earnings after IPO — boost in investor confidence
This is the company’s first quarter as a listed firm. The strong performance likely reinforces investor confidence, possibly aiding access to capital for expansion and consolidation. mint
What this means — For PhysicsWallah, investors & ed-tech sector
- For PhysicsWallah: The ₹70 crore profit shows it’s moving beyond growth-stage burn phase toward sustainable profitability — a key milestone for long-term stability.
- For investors: The sharp profit growth and margin improvement may boost stock attractiveness, especially after the firm’s recent IPO listing.
- For the ed-tech sector: Success of a listed, hybrid (online + offline) ed-tech model signals renewed investor faith, possibly spurring interest in similar business models in a post-pandemic environment.
What to watch next — Risks & future outlook
- Maintaining growth: Sustaining user growth and enrolments — especially in offline/hybrid centres — will be crucial for consistent profitability.
- Cost and competition pressures: Ed-tech remains competitive, and scaling without cost escalation will be key as the firm expands.
- Execution of expansion plans: How well PhysicsWallah executes its growth roadmap (infrastructure, content quality, user acquisition) post-IPO will determine long-term success.
Final thought
PhysicsWallah’s ₹70 crore Q2 profit milestone marks a turning point — from startup burn to profitability. For a company with wide aspirations in India’s massive education market, this result could be the first step toward emerging as a scalable, sustainable ed-tech powerhouse.
