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 Limited has released its monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its ₹3,100 crore Initial Public Offering (IPO). The report, prepared by CARE Ratings Limited and reviewed by the company's Audit Committee and Board of Directors on February 05, 2026, provides comprehensive insights into the deployment of IPO funds across various strategic objectives.

IPO Fund Utilization Overview

During Q3FY26, Physicswallah utilized ₹285.68 crores from its IPO proceeds, leaving ₹2,814.32 crores unutilized. The monitoring agency confirmed no deviations from the objects stated in the offer document, indicating adherence to the company's planned fund deployment strategy.

Key Fund Deployment Areas

The company allocated funds across several strategic initiatives during the quarter. Capital expenditure for fit-outs of new offline and hybrid centers received ₹2.42 crores, with ₹2.18 crores specifically directed toward "Vidyapeeth" centers and ₹0.24 crores for other centers. Lease payments for existing identified offline and hybrid centers accounted for ₹13.47 crores, distributed among Vidyapeeth centers (₹10.80 crores), Pathshala centers (₹0.37 crores), and other centers (₹2.30 crores).

Subsidiary Acquisition Progress

A significant portion of funds, ₹26.47 crores, was deployed for acquiring additional shareholding in subsidiary Utkarsh Classes & Edutech Private Limited. The acquisition involved payments of ₹6.18 crores each to Mr. Nirmal Gehlot and Mr. Tarun Gehlot, and ₹14.12 crores to Mrs. Bhanwari Gehlot. This transaction increased Physicswallah's total shareholding in Utkarsh Classes to 75.50%.

General Corporate Purposes

The largest single allocation during the quarter was ₹243.33 crores toward general corporate purposes. This expenditure primarily comprised ₹240.82 crores for employee benefit expenses and professional fees, including payments to full-time teachers and third-party consultant teachers. Additionally, ₹2.50 crores was allocated for Goods and Services Tax expenses related to capital expenditure and lease payments.

Unutilized Funds Management

The company has deployed its unutilized proceeds across multiple fixed deposits with leading banks, earning returns ranging from 5.25% to 6.80%. Major deposits include ₹1,000 crores with HDFC Bank at 6.78% return and ₹500 crores with Axis Bank at 6.80% return. The monitoring agency noted that several planned initiatives, including investments in Xylem Learning Private Limited, server and cloud infrastructure costs, and marketing initiatives, showed nil utilization during the quarter.

Financial Context and Outlook

The monitoring agency highlighted that Physicswallah incurred losses of ₹243 crores in FY25 and ₹57 crores in H1FY26. Despite these losses, the systematic deployment of IPO proceeds demonstrates the company's commitment to its stated growth objectives. All project completion dates remain on track, with most initiatives scheduled for completion by December 31, 2028, and no delays reported in implementation timelines.