India's PhysicsWallah expects Q3 profit after 26% revenue growth

PhysicsWallah, an edtech company based in Noida, said it expects to remain profitable in Q3 following a profitable Q2, and is projecting full-year profitability by FY27.

The company reported a 26% year-on-year rise in operating revenue to 1,051 crore rupee (US$126 million) and a 70% rise in net profit to 70 crore rupee (US$8.4 million) for July-September, its first quarterly results as a public firm.

PhysicsWallah listed on stock exchanges on November 18, 2025 after raising 3,100 crore rupee (US$372 million) in primary capital through a 3,480 crore rupee (US$418 million) IPO.

Online channels accounted for over 90% of enrolments.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Classroom centers drive higher fees despite smaller enrollment share

PhysicsWallah earns roughly equal revenue from online and its centers, even as over 90% of enrollments come via the app or web. ARPU in classrooms is far higher.
The website lists 136+ Vidyapeeth centers across India. Offline NEET (National Eligibility cum Entrance Test) and JEE (Joint Entrance Examination) seats require Rs 5,000 plus tax to reserve. That amount excludes Goods and Services Tax (GST). Total fees sit well above online courses.
The IPO raised Rs 3,100 crore in primary capital. If management chooses, that money can fund more centers that skew revenue but need higher spend on buildings and staff.
This footprint pits PhysicsWallah against Aakash Institute and Allen Career Institute, two giants built on large classroom networks.

High-ticket classroom fees open room for student financing

Revenue parity with far fewer classroom enrollments means fees are roughly 10x online, so point-of-sale financing can lift conversions.
Fintech firms and Non-Banking Financial Companies (NBFCs) can plug into 136+ centers. Offer embedded finance (integrated lending at the point of purchase) at signup with education loans, pay-later plans, or Equated Monthly Installment (EMI) options.
The company now serves 13 exam categories beyond JEE and NEET. That list covers UPSC (Union Public Service Commission) civil services, GATE (Graduate Aptitude Test in Engineering), and government exams.
With a goal of full-year profitability by FY27 (fiscal year 2027), lender partnerships could speed classroom growth while they carry the working capital from deferred payments.