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India’s leading technology-enabled education company, PhysicsWallah Limited (PhysicsWallah), reported a strong performance in the first quarter of financial year 2026-27. For the quarter ended June 30, 2026, the company’s operating revenue increased 24.4% year-on-year to ₹1,054 crore, compared with ₹847.1 crore in the same quarter last year. According to the company, this was its strongest-ever first quarter.
The company reported an EBITDA of ₹52 crore during the quarter, making the quarter EBITDA-positive. The EBITDA margin stood at 4.9%, compared with an EBITDA loss of ₹21 crore and a negative margin of 2.5% in the same quarter last year. However, EBITDA declined sequentially from ₹65 crore in the March 2026 quarter.
Total Income at ₹1,162.8 Crore, Net Loss Declines 30.5%
PhysicsWallah’s total income stood at ₹1,162.8 crore in the first quarter. During the period, the company’s total expenses increased 18% year-on-year to ₹1,247 crore. The company’s net loss declined 30.5% year-on-year to ₹88.3 crore, compared with ₹127 crore in the first quarter of financial year 2025-26.
However, the net loss increased on a sequential basis. The company had reported a net loss of ₹69.1 crore in the March 2026 quarter, which increased to ₹88.3 crore in the June quarter.
The company’s adjusted EBITDA increased more than fivefold year-on-year to ₹135 crore, compared with ₹26 crore in the same quarter last year. The adjusted EBITDA margin also improved from 3.1% to 12.9%. Adjusted EBITDA excludes share-based payments and certain exceptional items.
Online Business Remains a Key Growth Driver
PhysicsWallah’s online business delivered strong performance during the quarter. Revenue from the online segment increased 33% year-on-year to ₹549 crore, compared with ₹412 crore in the same period last year.
The number of unique transacting users on the online platform increased 2.4% to 21.5 lakh. Average collection per user also increased 9.7% to ₹4,311.
The company’s online K-12 and early learning business also recorded strong growth. Revenue from the segment increased 88% year-on-year to ₹105 crore, compared with ₹56 crore last year. Enrolments in these segments increased 41% to 7.8 lakh. According to the company, programmes covering school boards, foundation courses, Olympiad preparation and Curious Junior contributed to this growth.
Offline Business Network Continues to Expand
Revenue from PhysicsWallah’s offline business increased 14.5% to ₹490 crore, compared with ₹428 crore in the same quarter last year. The number of offline students also increased 5% to 3.5 lakh.
As of June 2026, the company had expanded its offline network to 366 centres, compared with 303 centres a year earlier. The network included 165 PW Vidyapeeth centres, 70 Pathshala centres and 131 centres operated by other and subsidiary entities.
However, the offline business continued to remain loss-making. The segment reported a pre-Ind AS EBITDA loss of ₹106 crore during the quarter, compared with ₹113 crore last year. According to the company, new offline centres incur higher initial expenses on faculty, rent and infrastructure. Costs and operating performance are expected to improve as enrolments increase.
Impact of Changes in the NEET Examination Cycle
The company said that the postponement of the NEET UG examination and the subsequent re-examination affected the normal admission cycle. As a result, online NEET collections declined 28% during the June quarter, as the usual post-examination admission cycle moved beyond the reporting quarter.
The company has also reported an improvement in collections in the subsequent period. However, this figure needs to be considered separately from the quarterly financial performance, as it relates to a period after the quarter ended June 30, 2026.
Learner Base and User Engagement Increase
During the quarter, PhysicsWallah’s total paid users increased 2.4% year-on-year to 24.9 lakh. Daily active users increased 26% to more than 40.3 lakh.
PhysicsWallah Founder and CEO Alakh Pandey said the quarter marked an important milestone in the company’s journey towards sustainable profitability. According to him, despite changes in the NEET examination cycle, the company improved profitability along with revenue growth and continued to expand its learner base across online, offline, K-12 and new examination categories.
Strong Start to Financial Year 2027
PhysicsWallah’s business is subject to seasonal trends due to the academic calendar. Enrolments generally increase at the beginning of the financial year, while batches start at different times, resulting in changes in quarter-on-quarter performance.
Despite this seasonality, the more than fivefold year-on-year increase in adjusted EBITDA reflects an improvement in the company’s operating performance. The pre-Ind AS EBITDA loss also declined from ₹89 crore last year to ₹44 crore. Its negative margin improved from -10.5% to -4.2%, while the PAT margin improved from -15% to -8.4%.
As of June 30, 2026, the company had 19,567 employees and 7,268 faculty members. According to PhysicsWallah, expansion across online education, K-12, early learning and new examination categories will remain key growth drivers going forward.
In FY26, PhysicsWallah reported a record ₹3,900 crore in revenue from operations and ₹549 crore in EBITDA. Against this backdrop, the Q1 FY27 performance can be viewed as the next phase of the company’s ongoing scale-up and improvement in operational efficiency.
