Physicswallah Limited has accepted the resignation of Mr. Sandeep Singhal from his position as Non-Executive Nominee Director on its Board. The resignation becomes effective from the close of business hours on August 19, 2026.

The company cited Mr. Singhal’s other professional and personal commitments as the reason for his departure. In a disclosure filed with stock exchanges, the firm expressed appreciation for the valuable contributions and guidance provided by Mr. Singhal during his association with the company.

Regulatory Disclosure

Physicswallah Limited made the announcement pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was issued on August 20, 2026.

The filing included details required under Regulation 30 of the SEBI Listing Regulations, along with a copy of the resignation letter, enclosed as Annexure-A. The company confirmed that all necessary statutory and regulatory filings, including those with the Registrar of Companies and relevant stock exchanges, have been completed in accordance with applicable law.

Key Details

Ajinkya Jain, Group General Counsel, Company Secretary & Compliance Officer of Physicswallah Limited, signed the disclosure. The company noted that the full disclosure would also be hosted on its investor relations website.

Physicswallah reported a 24% year-over-year increase in revenue from operations to ₹1,054 crore for the quarter ended June 30, 2026. The growth was driven by a 33% rise in online revenue and a 16% expansion in offline and other businesses. Despite the top-line growth, the company recorded a pre-Ind AS EBITDA loss of ₹44 crore, representing a margin of negative 4%, which marks an improvement of 624 basis points compared to the same quarter last year.

Financial Performance

The company’s profit before tax stood at a loss of ₹84 crore, a significant improvement from the loss of ₹152 crore in the corresponding quarter of FY25. This reflects a 995 basis point improvement in the bottom line. The improvement was supported by leverage across cost items, with employee costs excluding ESOPs declining by 2.6% year-over-year. Marketing expenses rose to ₹128 crore from ₹117 crore last year, resulting in a 172 basis point improvement in marketing efficiency.

Segment Growth and Initiatives

Online early learning and K-12 businesses emerged as key growth drivers, with revenue doubling year-over-year. Specifically, the K-12 segment saw revenue grow by 88% to ₹105 crore from ₹56 crore, accompanied by a 41% increase in enrollments to 0.78 million. The company also reported strong traction in NEET PG, with collections growing by 100% and enrollments rising by 50%. Vernacular categories witnessed a 1.7x jump in both enrollments and revenue.

Offline business faced temporary headwinds due to the shift in the NEET examination calendar, which delayed enrollments by five to seven weeks. Management indicated that had the exam cycle remained unchanged, offline revenue growth would have been between 22% and 25% instead of the reported 16%. The company is focusing on center-level cohort profitability, with Vidyapeeth centers showing a 7% improvement in Average Revenue Per User (ARPU).

What the Numbers Show

A notable divergence exists between the company’s cash position and its operational losses. While pre-Ind AS EBITDA remained negative at -₹44 crore, the treasury position strengthened to ₹5,600 crore, including IPO proceeds of ₹2,000 crore. This accumulation is attributed to the negative working capital cycle inherent in the education sector, where students pay fees upfront. The ₹600 crore quarter-on-quarter increase in cash underscores the strength of collections despite the cyclical delay in NEET-related enrollments.

Strategic Outlook

Management reaffirmed its annual guidance of 30% revenue growth and 100% EBITDA improvement for FY27. The company plans to divest its Finzy Fintech subsidiary, having signed two non-binding term sheets, with the transaction expected to close within a quarter. Capital allocation will focus on organic and inorganic expansion in online content and AI-first opportunities, including the rollout of a personalized AI tutor currently in beta phase. Offline expansion will remain opportunistic, limited to geographies that fit specific cohort economics.