Noida-based edtech company PhysicsWallah (PW) reported a 106% YoY increase in consolidated net profit to Rs 143.6 Cr in the second quarter of FY27, compared with Rs 69.7 Cr in the corresponding quarter last year.
The company's revenue from operations increased 18.2% to Rs 1,242.3 crore in Q2 FY27, against Rs 1,051.2 Cr in Q2 FY26, according to its stock exchange filings dated November 4, 2026.
Founded by Alakh Pandey (Founder and CEO) and Prateek Maheshwari (Co-founder), PhysicsWallah has built its business around affordable education through online learning platforms, offline centres and hybrid programmes.
Including other income of Rs 92.4 crore, the company's total income reached Rs 1,334.6 crore during the quarter.
PhysicsWallah's Expenses Grow Slower Than Revenue
PhysicsWallah's total expenses increased 10.6% YoY to Rs 1,105.4 Cr in Q2 FY27, compared with Rs 999.6 crore in the year-ago quarter.
Employee benefit expenses remained the largest cost component, rising 10.4% to Rs 522.4 crore from Rs 473.1 crore.
Other expenses increased to Rs 249 crore, while depreciation costs stood at Rs 113 crore. Finance costs increased to Rs 26 crore during the quarter.
The slower growth in expenses compared with revenue indicates improving operating leverage as the company scales its education business.
According to the company's investor presentation, EBITDA increased 52.6% YoY to Rs 348 crore, while the reported EBITDA margin improved to 28% from 21.7% a year earlier.
Online Business Leads PhysicsWallah's Revenue Growth
The online segment continued to be PhysicsWallah's largest revenue contributor, generating ₹693.5 crore in Q2 FY27, up 26.4% from Rs 548.7 crore in Q2 FY26.
The offline business recorded revenue of Rs 540.9 Cr, registering 9% YoY growth against Rs 496.1 crore in the corresponding quarter last year.
The company operated 370 offline centres at the end of September 2026, compared with 314 centres a year earlier.
The performance highlights the importance of PhysicsWallah's omnichannel strategy, with online education driving faster revenue growth while its physical centre network continues to expand.
However, the delayed NEET examination cycle affected enrolments and collections during the period, particularly in the offline business.
During its earnings discussion, management indicated that some collections would move into Q3 FY27, while the company expects a stronger recovery in the next academic session.
The company also reported that online NEET enrolments grew more than 30% during Q2, indicating a recovery in demand following the delayed examination cycle.
PhysicsWallah Turns Profitable In H1 FY27
For the first half of FY27, PhysicsWallah's revenue from operations increased 20.8% YoY to Rs 2,293 crore from Rs 1,898 crore in H1 FY26.
More importantly, the company reported a net profit of Rs 55.35 crore in H1 FY27, compared with a net loss of Rs 57.3 crore in the corresponding period last year.
This marks a significant improvement in its financial performance as the company continues to scale its online and offline operations.
During the quarter, PhysicsWallah also announced the discontinuation of its subsidiary Finz Finance's lending business. Its loan portfolio was transferred to Auxilo Finserve for approximately ₹95.8 crore in October 2026.
The move reflects the company's decision to exit direct lending while continuing to facilitate student financing through external lending partners.
With revenue growth outpacing expense growth, improving profitability and continued expansion across education categories, PhysicsWallah's Q2 FY27 performance signals progress towards building a more sustainable and diversified edtech business.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
