PhysicsWallah Reports Strong Q2 FY26 Performance with 26% Revenue Growth
PhysicsWallah reported impressive Q2 FY26 financial performance with 26% revenue growth reaching ₹1,051 crores and 70% increase in PAT to ₹70 crores. The company expanded its paid user base to 3.62 million while maintaining strong engagement metrics and successfully diversifying its offerings beyond traditional JEE-NEET preparation into government exams and state boards.
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Physicswallah Limited delivered impressive financial results for the second quarter of fiscal year 2026, demonstrating strong growth across key metrics and maintaining its trajectory toward sustained profitability.
Financial Highlights
The company's Q2 FY26 performance showcased robust growth across multiple parameters:
| Metric: | Q2 FY26 | Q2 FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹1,051.20 crores | ₹834.00 crores | +26% |
| Adjusted EBITDA: | ₹269.00 crores | ₹195.00 crores | +38% |
| Pre-IndAS EBITDA: | ₹161.00 crores | ₹117.00 crores | +37% |
| Profit After Tax: | ₹70.00 crores | ₹41.00 crores | +70% |
| EBITDA Margin: | 26% | 23% | +300 bps |
User Base and Engagement Metrics
PhysicsWallah continued to expand its reach with significant improvements in user engagement:
- Paid users reached 3.62 million in H1 FY26, up from 2.99 million in the previous year
- Online Average Cost Per User (ACPU) increased by 8%
- Monthly active users to daily active users ratio remains strongest among consumer internet companies
- Average time spent by paid users: 100-120 minutes daily
Business Segment Performance
The company maintained balanced growth across its online and offline channels:
| Segment: | H1 FY26 Contribution | Growth Rate |
|---|---|---|
| Online Operations: | 49% | Strong double-digit |
| Offline Channels: | 47% | 30% enrollment growth |
| Other Channels: | 4% | Steady expansion |
Offline Expansion Strategy
PhysicsWallah's offline presence continued to strengthen with 314 operational centers. The company's unique tech-enabled offline model shows promising unit economics:
- 72 out of 117 Vidyapeeth centers are now profitable
- Typical center investment: ₹2.50 crores with structured profitability timeline
- 80% of offline admissions originate from online learner base
- Plans to open 75 new centers in the upcoming year
Market Position and Diversification
The edtech leader has successfully diversified beyond its core JEE and NEET offerings:
- JEE and NEET now represent 31% of total enrollment, down from 36% previously
- Strong market share of 20% in early exam categories with 30-40% penetration in Hindi heartland
- Expansion into government exams, state boards, and professional courses showing positive traction
- Overall market share remains below 2%, indicating significant growth potential
Strategic Initiatives
Management highlighted several key strategic developments during the earnings call:
- Successful acquisition of 40% stake in Sarrthi IAS for UPSC domain expansion
- Implementation of Faculty Training Program reducing teacher costs while maintaining quality
- Enhanced data-driven approach for center location selection
- Separate reporting of online and offline business profitability planned from April 2026
Financial Position
The company maintains a strong balance sheet with ₹25,519.00 million in treasury assets and generated ₹6,441.00 million in free cash flow, providing substantial resources for future expansion and strategic investments.
With Q3 traditionally being the company's strongest quarter, management expressed confidence in continued growth momentum while maintaining focus on sustainable profitability across all business segments.
Historical Stock Returns for Physicswallah
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.75% | -1.13% | -0.83% | -15.75% | -15.75% | -15.75% |
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