Physicswallah Limited (NSE: PWL), a prominent player in the Indian education technology sector, has announced a significant corporate governance update. The company's Board of Directors has approved the alteration of its Articles of Association, specifically the deletion of Part B, subject to shareholder approval and necessary regulatory clearances.

Key Points of the Announcement

• Board Approval: The Board of Directors of Physicswallah Limited has approved the deletion of Part B from the company's Articles of Association.
• Shareholder Approval: The proposed change is subject to approval by shareholders through a postal ballot.
• Regulatory Clearance: The alteration will also require necessary regulatory or statutory approvals as per applicable laws.

Rationale Behind the Decision

The decision to delete Part B of the Articles of Association stems from the termination of a previously existing Shareholders Agreement (SHA). This agreement was originally in place between Physicswallah and several entities, including:

With the SHA no longer applicable, the company aims to align its Articles of Association with current regulatory and governance requirements.

Implications for Corporate Governance

This move signifies Physicswallah's commitment to maintaining up-to-date corporate governance practices. By removing provisions that are no longer relevant, the company is streamlining its governance structure to better reflect its current operational and regulatory environment.

Next Steps

1. Postal Ballot: Shareholders will be asked to vote on this alteration through a postal ballot.
2. Regulatory Approvals: The company will seek necessary regulatory approvals for the changes.
3. Implementation: Upon receiving shareholder and regulatory approvals, the company will proceed with the deletion of Part B from its Articles of Association.

Investors and stakeholders should note that this change is primarily administrative and aimed at improving corporate governance efficiency. It does not directly impact the company's day-to-day operations or financial performance.

As Physicswallah continues to evolve in the competitive edtech landscape, such corporate governance updates demonstrate the company's commitment to transparency and adherence to best practices in corporate management.

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:

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:

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.