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India’s EdTech sector is no longer limited to rapid user acquisition and digital expansion. After the pandemic, the market has increasingly shifted its focus towards revenue quality, profitability, hybrid education, AI-powered learning and employability-focused programmes. Early FY26 financial indicators also suggest that large EdTech players are prioritising sustainable business models and operating efficiency alongside scale.
PhysicsWallah Records 33% Revenue Growth in Q1 FY26
A key quarterly indicator of this shift came from PhysicsWallah’s (PW) Q1 FY26 performance. The company’s operating revenue stood at ₹847 crore in the April-June 2025 quarter, around 33% higher than ₹635 crore in the same quarter last year. However, profitability remained a challenge alongside revenue growth, with the company’s net loss rising to around ₹127 crore.
PW’s performance is significant because the company has expanded beyond online learning to include offline Vidyapeeth centres, hybrid education, test preparation and skilling in its business model. This shift indicates that Indian EdTech companies are increasingly combining online and offline formats instead of relying only on app-based learning to expand their reach among learners
Great Learning recorded revenue exceeding ₹1,000 crore in FY25
In the professional upskilling and higher education segment, Great Learning reported consolidated revenue from operations of ₹1,039 crore in FY25, up around 4.7% from ₹992 crore in FY24. More importantly, the company’s operating profit nearly tripled to ₹40.23 crore.
The company linked its FY25 growth particularly to rising global demand for AI and professional upskilling. Great Learning has also expanded academic collaborations with institutions such as IIT Bombay and Johns Hopkins University and increased its focus on AI-focused learning programmes.
upGrad Focuses on Global Upskilling and Higher Education
upGrad is also among the major Indian EdTech players with revenue above ₹1,000 crore. In FY25, the company reported gross revenue of ₹1,943 crore and total income of ₹1,650 crore. During the same period, the company reported achieving EBITDA profitability, marking an important signal towards its sustainable growth model.
upGrad’s business model is now focused on higher education, executive education, professional upskilling, university partnerships and international markets, along with AI-led learning solutions. This reflects the growing demand for career-focused and lifelong learning beyond traditional test preparation in the EdTech sector.
Focus Shifts from Revenue to Profitability
India’s EdTech sector can no longer measure growth only through large revenue numbers. The example of PhysicsWallah shows that rapid revenue growth can also put pressure on expansion costs and profitability, while Great Learning’s FY25 performance points towards a significant improvement in operating profit alongside revenue growth.
This is why quality of growth has become an important metric for EdTech companies in FY26. Alongside learner acquisition, companies are paying greater attention to retention, paid users, programme completion, employability outcomes, operating margins and repeat demand.
AI and Upskilling Emerging as Major Growth Engines
AI has created new demand in professional education and the upskilling segment. Great Learning also identified global demand for AI-related professional upskilling as one of its growth drivers in FY25.
Meanwhile, platforms such as upGrad are making AI, executive education and international learning opportunities part of their expansion strategies. This indicates that AI literacy, data skills, technology, management and job-ready programmes could remain key areas of EdTech demand in the coming years.
Unacademy, Vedantu, Simplilearn and Adda247 Have Different Business Models
Not every major EdTech brand should be placed in the ₹1,000 crore+ revenue category. Unacademy, Vedantu, Simplilearn and Adda247 play important roles in their respective segments, and their business models are also different. According to available FY25 data, Unacademy’s consolidated operating revenue was around ₹702 crore, Simplilearn’s around ₹556 crore and Adda247’s around ₹217 crore, while Vedantu’s FY25 revenue was around ₹234 crore.
Therefore, it would not be appropriate to include these companies in the ₹1,000 crore+ revenue club. At the same time, comparisons with PhysicsWallah, Great Learning and upGrad need to consider different financial reporting periods, consolidated or standalone figures and business models. Unacademy primarily focuses on test preparation and hybrid/offline learning, Vedantu on K-12 online and hybrid tutoring, Simplilearn on professional upskilling and certification, and Adda247 on government-exam preparation and vernacular learning.
Unacademy is focusing on test preparation and offline expansion, while Vedantu is emphasising hybrid education and school-focused opportunities. Simplilearn is strengthening its position in professional certification and corporate upskilling, while Adda247 remains focused on government exams, banking, SSC and vernacular learning segments.
Hybrid Education is Reshaping the EdTech Business Model
Hybrid learning is no longer just a temporary post-pandemic trend in the EdTech sector. PhysicsWallah’s online and offline model is a key example. Offline centres provide learners with a classroom experience, while digital platforms offer scale and flexibility.
Similarly, professional education is increasingly combining live online classes, recorded content, mentorship, university partnerships and career services. This is creating a learning experience that focuses not only on course completion but also on career outcomes and industry readiness.
Sustainable Growth Will Be the Biggest Test in FY26
In FY26, the real competition in India’s EdTech sector will not be limited to determining which company has the highest revenue. More importantly, it will be about which companies can convert revenue growth into profitability, better learner outcomes and long-term customer value.
Among the available comparable quarterly data, PhysicsWallah’s 33% growth in operating revenue in Q1 FY26 is a strong publicly reported indicator. However, it would not be appropriate to call it the “highest growth in the entire Indian EdTech sector”, as most unlisted EdTech companies do not publicly release quarterly financial results.
Overall, the performance of players such as PhysicsWallah, Great Learning and upGrad indicates that India’s EdTech sector is moving beyond the hyper-growth phase and entering a new phase where AI, hybrid education, professional upskilling and profitability are likely to become the key pillars of the next growth cycle.
