PhysicsWallah Q2 profit doubles to Rs 144 crore
PhysicsWallah's September-quarter profit rose 2.1 times to Rs 144 crore on revenue of Rs 1,242 crore; online grew 26% and offline 9%. Key numbers explained.
PhysicsWallah, the listed Indian education company that began as a YouTube channel, reported consolidated net profit of Rs 144 crore for the July to September 2026 quarter, about 2.1 times the Rs 70 crore of a year earlier, Entrackr reported on 4 November 2026 from exchange data. Revenue from operations rose 18.2% to Rs 1,242 crore. The online business grew faster than the classroom business, which is the opposite of the direction the company has been pushing. The quarter's numbers come from one report, and background on the company's plans comes from earlier articles read for this briefing.
What the quarter looked like
Revenue from operations was Rs 1,242 crore, against Rs 1,051 crore in the same quarter of 2025. Other income, mostly what a company earns on cash and investments, was Rs 93 crore, taking total income to Rs 1,335 crore. Total expenses were Rs 1,105 crore, up 10.5% from Rs 1,000 crore. Revenue grew almost twice as fast as costs, which is why profit more than doubled.
Entrackr breaks out the costs. Employee benefits, the largest item, were Rs 522 crore, up 10.4%. Cost of materials consumed, which for an education firm covers printed books and similar items, was Rs 195 crore, up 22.6%. Depreciation was Rs 113 crore, up 7.6%, finance costs Rs 26 crore, up 4%, and other expenses Rs 249 crore, up 4.6%. Subtracting expenses from total income gives roughly Rs 230 crore before tax, a figure calculated here; the report does not explain the gap to the Rs 144 crore net profit, so it should not be read as an exact tax rate.
For the first half of FY27, revenue was Rs 2,293 crore, up 20.8%, and net profit was Rs 55.35 crore, against a loss of Rs 57.30 crore in the first half of last year. The gap between the half-year profit and the quarter's Rs 144 crore means the June quarter was a loss of about Rs 89 crore, a calculation from the two reported figures. An earlier Inc42 article on the June quarter described a narrowing loss and, in a first, segment-wise reporting.
Online against offline
Segment · Q2 FY27 revenue · Share of operating revenue · Growth over the yearOnline · Rs 693.5 crore · 55.84% · 26.3%
Offline · Rs 541 crore · 43.56% · 9.1%
Other operating revenue · Rs 8 crore · not stated · not stated
Online courses are recorded or live classes delivered through an app, usually at lower prices. Offline means physical coaching centres. PhysicsWallah runs two types: Pathshala, a hybrid format launched in 2021, and Vidyapeeth, full classroom coaching launched in 2022, according to Inc42's August feature. The company's model, as Inc42 describes it, uses free YouTube lectures to draw students into paid online batches and then into offline formats.
The surprise is the growth gap. Offline revenue grew only 9.1% even though the company has put much of its recent capital into centres. Inc42 reports that of Rs 1,008.9 crore of public-issue proceeds set aside for offline and hybrid centres and leases, Rs 874 crore was unspent at the end of June 2026. So the offline expansion funded by that money is still largely ahead, which may explain part of the slower growth, though the Entrackr report does not give a reason for it.
Why the margin story matters
In the June quarter, Inc42 reports, the online business was profitable at the operating level with a profit of Rs 75.9 crore, while offline had an operating loss of Rs 27 crore at the segment level, or Rs 54 crore after allocating shared corporate costs. Management has said mature Vidyapeeth centres can reach steady-state margins of 13% to 15%, with an example of a centre earning Rs 10 crore in revenue and Rs 1.3 to 1.5 crore in operating profit. PTI, in a report carried by the Free Press Journal in December 2025, also quoted the company as saying mature centres are heading for a 12% to 15% margin and that it expected FY27 to be profitable after tax on a full-year view.
Those are management targets, not results. The Q2 report here does not split profit by segment, so it cannot show whether the offline business is closer to break-even. What it does show is that the total company is profitable on both a quarterly and a half-year basis, and that the online half is doing the heavy lifting on growth.
What the company says it is doing
According to the PTI report, the company operates over 300 offline centres and across 13 categories, beyond its original engineering and medical entrance exams to include civil services, GATE, CUET and government exams. It identified more than 75 new centres across 24 states for FY27, including more than 45 Vidyapeeth centres, and is targeting state boards, foundation courses for Classes 6 to 10 and vernacular-language courses. Inc42 reports that K-12 and early-learning revenue was Rs 105 crore in the June quarter, up 88%, and that the company offers AI products named Ask AI, AI Companion and AI Tutor, with no revenue or usage figures.
Inc42 also notes cautions. Newer categories are in investment mode, which could dilute margins, and management attributed weak June-quarter metrics to a shift in the medical entrance exam cycle, a claim the article labels as management's own.
What it means for students, parents and investors
For students and parents, the numbers show a company growing faster in online courses, which tend to cost less than classroom coaching. The Inc42 piece reports average collection per online user of Rs 4,312 and average revenue per offline user of Rs 12,633 in the June quarter, so an offline student paid roughly three times as much. That gap is part of why offline profit matters to the company: each additional classroom student brings in more revenue but needs a building and a teacher.
For founders in education technology, PhysicsWallah's results show that the profitable route may be a blend: a cheap online funnel to build reach, then higher-priced centres for students who want classroom study. For investors the question is how fast centres mature. The report puts the company's market value at Rs 37,376 crore at a share price of Rs 127.41, as of the day of the report.
The simulator below lets you test centre economics using management's stated targets. The defaults come from the Inc42 example, and the outputs are targets rather than results.
What to watch next
The next signals are the third-quarter results and any segment-wise profit for offline, which would test the 13% to 15% margin target. Watch how much of the Rs 874 crore of unspent issue proceeds is deployed, the pace of new Vidyapeeth openings and whether online growth stays above 20%. The company has told investors to judge it on a full-year view, so the FY27 annual result is the real test of its profit guidance.
Key takeaways
- PhysicsWallah's Q2 FY27 net profit was Rs 144 crore, about 2.1 times last year's Rs 70 crore, on revenue from operations of Rs 1,242 crore, up 18.2%.
- Online revenue grew 26.3% to Rs 693.5 crore and offline 9.1% to Rs 541 crore.
- The first-half profit of Rs 55.35 crore compares with a loss of Rs 57.30 crore a year earlier, which implies a June-quarter loss of about Rs 89 crore.
- The 13% to 15% centre margin is management's steady-state target and has not yet been shown in results.
- The quarter's figures come from one report and should be checked against the exchange filing.
Sources
- [Entrackr: PhysicsWallah revenue rises 18% to Rs 1,242 Cr in Q2 FY27; profit jumps 2.1X](https://entrackr.com/fintrackr/physicswallah-revenue-rises-18-to-rs-1242-cr-in-q2-fy27-profit-jumps-21x-12783496)
- [Inc42: Physics Wallah's full-stack bet, looking into the revenue engine](https://inc42.com/features/physics-wallah-full-stack-bet-looking-into-the-revenue-engine/)
- [Free Press Journal (PTI): PhysicsWallah to report profit in FY27](https://www.freepressjournal.in/business/edtech-firm-physicswallah-to-report-profit-in-fy27-buoyed-by-cost-efficiencies-mass-market-segments-of-state-boards-vernacular-language-categories)
Tags: PhysicsWallah Edtech Quarterly results Startups Offline coaching