Physicswallah: Profit Expected in FY27

New Delhi, Dec 9 (PTI) Edtech firm Physicswallah is expecting to report profit in FY27, on the back of cost efficiencies, the company said in a regulatory filing on Tuesday.

The company said its next phase of growth will come from our mass-market segments of state boards, foundation (Classes 6–10), and vernacular-language categories.

"We expect FY27 to be a PAT-positive year, as cost efficiencies continue to strengthen. We expect our newer online categories to mature and achieve profitability levels comparable to our early categories. Simultaneously, our older offline centres will reach maturity. These combined factors will drive sustained, company-wide profitability on a full-year basis," the company said in a letter to shareholders.

The company said its mature centres are now entering a steady-state margin of 12-15 per cent due to improving operating leverage.

Physicswallah (PW) recently posted around a 70 per cent increase in consolidated profit after tax to Rs 69.71 crore in the second quarter ended September 30, 2025, from Rs 41.1 crore it posted a year ago.

"While Q2 (second quarter) is a PAT-positive quarter, and we expect Q3 (third quarter) to also close PAT positive, the right lens to evaluate our performance is on a full-year trajectory," the company said.

The consolidated revenue from operations grew about 26 per cent to Rs 1,051 crore during the reported quarter from Rs 832.1 crore in the September 2024 quarter.

Physicswallah has expanded from JEE and NEET test preparation to 13 categories, such as UPSC, GATE, CUET, Foundation, Government Exams, etc. It now operates over 300 offline centres.

The company said it has identified locations to open more than 75 new centres across 24 states, including over 45 Vidyapeeth centres, 10 Pathshala centres, and 20 other centres.

Physicswallah sees the southern market emerging as a key strategic growth lever for the company.

"As our more than 20 centres in Chennai, Hyderabad, and Bengaluru enter their second year, we expect deeper penetration supported by stronger brand recall and improving student outcomes.

"To accelerate this momentum, we are opening 13 new centres across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala, which are expected to add 12,000–15,000 new enrolments," the letter said.

In parallel, the company plans to expand its online portfolio with deeply localised, language-led courses across southern states, targeting 50 per cent enrolment growth in FY27, it added.

The edtech firm is now betting on deepening adoption of artificial intelligence to build a new generation of products, hyper-personalised practice systems, teacher co-pilots, content-creation assistants, and multilingual learning models that leverage proprietary content and data advantage.

"With one of the largest learning datasets in the country, we are uniquely positioned to build AI tools that serve both students and teachers - ranging from instant doubt resolution and adaptive learning paths to intelligent content generation and automated grading support," the letter said.