PhysicsWallah reported its highest ever quarterly revenue in Q2 2026, with revenue from operations of Rs 1,242.26 crore and a profit after tax of Rs 142.29 crore for the September quarter. Revenue grew 18.2% from Rs 1,051.24 crore a year earlier and profit more than doubled from Rs 69.72 crore, the company’s results filing shows.
PhysicsWallah Q2 2026 Revenue and Profit: The Core Numbers
Revenue from operations stood at Rs 1,242.26 crore for the quarter ended September 2026, up 18.2% from Rs 1,051.24 crore in the same quarter last year. Profit after tax came in at Rs 142.29 crore, more than double the Rs 69.72 crore reported a year ago. Including the lending arm that the company is winding down, total profit for the quarter was Rs 143.63 crore.
The first half of FY27 now shows a profit of Rs 55.25 crore, against a loss of Rs 57.30 crore in the same period last year. The turnaround covers Rs 112.55 crore of profit improvement in just one year.
“This quarter shows the strength of our model. We delivered record revenue and a sharp improvement in profitability, while our learner base kept widening across K-12, vernacular and new categories,” said Alakh Pandey, Founder and CEO of PhysicsWallah.
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What Drove the PhysicsWallah Profit Improvement in Q2 2026
Costs grew slower than revenue, and that explains most of the margin expansion. Employee cost excluding stock options fell to 42.3% of first-half revenue from 44.6% a year ago. Other expenses dropped to 23.4% from 24.6% and marketing spend fell to 9.4% from 10.6%.
Pre-IndAS EBITDA, the company’s preferred profitability measure that counts actual rent on centres rather than splitting it into depreciation and interest, rose 45% to Rs 233 crore in the quarter, an 18.8% margin against 15.3% a year earlier.
Technology is now a cost lever as much as a product lever. PhysicsWallah’s shareholders’ letter stated that AI now resolves 80% of student support queries and writes 92% of committed code. Those two figures represent structural reductions in support and engineering headcount over time.
The quarter also carried two one-off entries: a Rs 20.11 crore goodwill impairment booked as an exceptional item and a Rs 9.54 crore gain from revaluing financial instruments. Without those items, profit before tax would have been approximately Rs 220 crore instead of Rs 209.15 crore.
Online vs Offline Revenue: Two Speeds in One Business
The two halves of PhysicsWallah’s business continued moving at different speeds. Online revenue grew 26.4% to Rs 693.52 crore with a 34.4% pre-IndAS EBITDA margin. Offline revenue grew 9% to Rs 540.87 crore and still ran a small loss at the segment level.
The offline loss is narrowing as older centres mature. The first-half offline loss was Rs 108 crore against Rs 120 crore a year ago, a Rs 12 crore improvement as the network of centres built in prior years begins to generate positive returns.
Categories beyond JEE and NEET now dominate online enrolments. Boards and CUET enrolments rose 130% to 4.55 lakh in the first half. Vernacular enrolments rose 77% to 1.23 lakh across 10 languages. Non-JEE and non-NEET categories made up 73.8% of online enrolments in the first half, against 64.8% a year ago.
PhysicsWallah Offline Centre Expansion Is Slowing Intentionally
PhysicsWallah opened 56 offline centres in the first half of FY27, against 128 in the same period last year. The total network stands at 370 centres, against 314 a year ago. The company now plans 25 to 30 new centres per year for the next two years, a significant reduction from IPO-era projections.
“We are opening new centres more slowly than we indicated at the IPO,” the company said, describing the change as intentional while it focuses on the economics of existing centres.
The IPO proceeds reflect the same shift. Of Rs 460.55 crore earmarked for new centre fit-outs, only Rs 17.17 crore was spent in the six months. Across all stated objects, Rs 1,765.46 crore of the Rs 2,961.79 crore of net proceeds remained unutilised on 30 September 2026, parked in bank deposits.
CARE Ratings Flags Rs 71.74 Crore IPO Fund Deviation
CARE Ratings, the monitoring agency appointed to track PhysicsWallah’s IPO fund usage, filed a separate report flagging a deviation from the stated objects of the issue. Rs 71.74 crore was paid from the IPO monitoring account to buy an additional stake in Guiding Light Education Technologies, a subsidiary, which was not listed among the IPO’s stated objects.
The monitoring agency also noted that there was no board approval for the investment in Guiding Light Education Technologies and no board approval for using the funds toward general corporate purposes as required by the prospectus.
PhysicsWallah returned the Rs 71.74 crore from its own current account on 30 October 2026. The board said the matter “has since been rectified.” CARE classified the deviation as less than 10% of the Rs 3,100 crore fresh issue.
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PhysicsWallah Increases Utkarsh Stake for Rs 2,55,990
The board approved the fourth tranche of its long-running purchase of Utkarsh Classes and Edutech, a Jodhpur-based government exam coaching company. PhysicsWallah will buy 25,599 shares, or 12.25% of Utkarsh’s fully diluted capital, for Rs 2,55,990 in cash. This takes PhysicsWallah’s total holding in Utkarsh from 75.50% to 87.75%. Utkarsh reported turnover of Rs 169.66 crore in FY26.
Key Takeaways: PhysicsWallah Q2 2026 Results
PhysicsWallah delivered its strongest quarter on record by both revenue and profit. Revenue of Rs 1,242.26 crore and profit of Rs 142.29 crore represent a decisive step toward the profitability targets the company set at IPO. The online segment continues to outperform with 26.4% growth and a 34.4% pre-IndAS EBITDA margin. The offline segment is loss-making but improving, with the first-half loss narrowing from Rs 120 crore to Rs 108 crore. AI productivity gains are now measurable cost savings: 80% of support queries resolved by AI, 92% of committed code written by AI. The IPO fund deviation of Rs 71.74 crore was flagged, returned, and classified as minor by CARE Ratings.