Physics Wallah reports Rs 1,054 Cr Q1 revenue, offline remains loss-making

Physics Wallah (PW) reported a 24.4% year-on-year increase in operating revenue to Rs 1,054 crore for the June quarter of FY27, according to its first public segment-wise financials. The online education business contributed Rs 549 crore and posted an operating profit of Rs 75.9 crore, while the offline segment, comprising Pathshala and Vidyapeeth centres, contributed Rs 490 crore but remained loss-making with an operating loss of Rs 27 crore at the segment level, or Rs 54 crore after allocated corporate costs.

Inc42 reports that PW's growth has been driven by its hybrid model, where free YouTube content funnels students into paid online courses and offline centres. The company has expanded beyond its original JEE and NEET focus into K-12, government exams, and professional courses, and also earns from B2B school support, hardware sales, and student financing. Livemint notes that the NEET exam cycle was delayed by five to seven weeks, suppressing Q1 offline growth to 14.5% versus an estimated 22-25% under a normal calendar, though offline NEET enrolments rose 82% year-on-year since July.

PW's management has retained its FY27 guidance of 30% revenue growth and a doubling of pre-Ind AS Ebitda, Livemint adds. The company is exiting its FinZ education loan venture to focus capital on online content and selective acquisitions. Online pre-Ind AS Ebitda rose 168% to Rs 67 crore with a 12.2% margin, while K-12 and early-learning revenue surged 88% to Rs 105 crore.