PhysicsWallah has announced strong Q3FY26 financial results, demonstrating exceptional growth momentum with revenue reaching ₹10.82 billion and consolidated net profit of ₹1.02 billion. The edtech company has achieved a significant milestone by surpassing its full FY25 revenue within the first nine months of FY26, showcasing robust operational execution and market expansion.

Financial Performance Overview

The company's Q3FY26 results showcase impressive growth across key metrics, with revenue from operations growing 34% year-over-year to ₹10.82 billion from ₹8.10 billion in Q3FY25. Consolidated net profit reached ₹1.02 billion, representing a 33% increase from ₹767 million in the corresponding quarter of the previous year.

Nine-Month Performance and User Growth

For the nine months ended December 31, 2025, PhysicsWallah achieved revenue of ₹29.81 billion, marking a 31% year-over-year increase. The company's user base expanded significantly with total paid users reaching 4.37 million, up 21% from 3.60 million in 9M FY25. Online enrollments grew 20% to 3.96 million users, while offline student enrollments surged 36% to 0.41 million.

Operational Expansion and Infrastructure Growth

PhysicsWallah has significantly expanded its physical presence with 318 centers as of December 31, 2025, compared to 186 centers in 9M FY25. The network includes 122 PW Vidyapeeth centers, 75 PW Pathshala centers, 53 other PW centers, and 68 subsidiary centers. The company has also expanded its course offerings to 16 categories, adding 3 new categories in Q3FY26.

Strong Financial Position and Cash Generation

The company maintains a robust treasury position of ₹50.54 billion, including IPO proceeds, as of December 31, 2025. Cash flow from operations for 9M FY26 reached ₹6.43 billion, compared to ₹5.07 billion for the full year FY25. This strong cash generation capability supports the company's expansion plans and strategic investments.

Strategic Initiatives and Technology Integration

PhysicsWallah continues to invest in artificial intelligence with initiatives including AI Guru, Ask AI, AI Grader, AI Mentor, and AI Books. The company launched PW Talks, an AI-driven English-speaking app that has recorded over 1 million sign-ups. The platform's vernacular expansion into Marathi, Bangla, Gujarati, Kannada, and Odia languages has generated approximately 90,000 enrollments within nine months.

The strong Q3FY26 performance, combined with successful market expansion and technology integration, positions PhysicsWallah for continued growth in India's competitive edtech landscape while maintaining operational excellence and financial discipline.

PhysicsWallah shares experienced significant selling pressure on Tuesday, January 20, falling nearly 8% and extending losses for the third consecutive trading session. The edtech platform's stock has declined 14% over the past three trading days, with substantial trading volumes of around 44 lakh shares recorded by 11 am IST.

Market Performance and Valuation Impact

The sharp sell-off has significantly impacted the company's market valuation, with key metrics showing substantial changes from its listing levels.

Technical Analysis Indicators

The stock's technical position has deteriorated significantly, with multiple indicators suggesting weakness. PhysicsWallah shares are currently trading below all key short-term moving averages, including the 5-day, 10-day, 20-day, and 30-day averages. The Relative Strength Index has dropped to 31.7, approaching the oversold threshold of 30, which typically indicates potential buying opportunities for technical traders.

Business Performance and Growth Strategy

Despite market pressures, the company maintains strong operational momentum. Co-founder and whole-time director Prateek Maheshwari previously indicated that PhysicsWallah aims to achieve profitability within the next 12 months. The company's expansion strategy focuses on several key areas:

• Accelerated growth in southern India
• Strengthening presence across 11 Indic languages
• Expansion into multiple exam categories
• Balanced growth between online and offline segments

Revenue Mix and Financial Performance

The company's revenue structure demonstrates a balanced approach between digital and physical presence. Currently, 52% of revenue comes from online business operations, while offline centres contribute the remaining 48%. This revenue mix is expected to remain stable as both segments continue growing at healthy rates.

IPO Performance and Market Debut

PhysicsWallah's initial public offering demonstrated strong investor interest, with the ₹3,480 crore IPO subscribed nearly two times during the November 11-13 subscription window. The company delivered impressive listing gains of 36%, debuting at ₹145 on NSE and ₹143.10 on BSE against the issue price of ₹109.

Subscription details revealed varied investor participation across categories, with retail investors subscribing 106% of their quota, non-institutional investors at 48%, and qualified institutional buyers achieving 2.7 times oversubscription.

Company Background and Current Operations

Founded in 2016 by Alakh Pandey, who initially began uploading free physics lessons on YouTube, PhysicsWallah gained significant prominence during the pandemic period. The company has built substantial infrastructure with 303 offline centres operating across 152 cities in India and the Middle East, supporting its hybrid education model.