PhysicsWallah leans into AI as it posts 70% rise in Q2 profit, scales offline operations

PhysicsWallah Limited reported strong performance in its first quarterly results since listing on the stock market last month, posting a 70% year-on-year rise in profit for the second quarter of FY26 to Rs 69.7 crore.

Revenue from operations grew 26% YoY to Rs 1,051.2 crore, driven largely by the company’s online learning ecosystem, which continues to account for more than 90% of total enrolments. Online revenue stood at Rs 536 core, while offline revenue reached Rs 478 crore as the company expanded its physical footprint in response to student demand.

Adjusted EBITDA rose 38% YoY to Rs 269 crore. PhysicsWallah’s free cash flow stood at Rs 2,552 crore as of September 30, 2025, excluding IPO proceeds.

Founders Alakh Pandey and Prateek Maheshwari said the company would remain focused on its mission to democratize high-quality education at affordable prices.

Founded as a YouTube channel in 2014, PhysicsWallah now claims to be India’s largest digital learning community, with more than 12.5 crore subscribers across YouTube, Telegram and Instagram. The platform enrolled 3.62 million unique students in the first half of FY26, up from 2.99 million in the same period last year.

The company said artificial intelligence is becoming central to its operating model. AI platforms such as AI Guru, AI Sahayak, NCERT Pitara and its automated doubt-solving and grading systems have collectively resolved more than 100 million student queries. Its AI grading engine has evaluated more than 700,000 subjective answer sheets.

PW said it is building the next generation of AI-powered offerings, including hyper-personalized practice systems, teacher co-pilots, content-creation assistants and multilingual learning models.

On its offline expansion, PW said it plans to significantly scale its presence in FY27. It has identified locations for more than 75 new centres across 24 states--comprising over 45 Vidyapeeth centres, 10 Pathshala centres and 20 additional centres. These include major metros such as Delhi, Mumbai, Hyderabad and Kolkata, along with high-growth tier-1 and tier-2 cities like Jaipur, Kanpur, Patna, Guwahati and Indore.

Vidyapeeth centres remain the core of the offline business, contributing a little over 65% of offline revenue in H1 FY26.

During Q2, PW also acquired a 40% stake in Sarrthi IAS (Guiding Light Educational Technologies Pvt. Ltd.) as part of its strategy to strengthen its test-prep portfolio.

In South India, the company plans to open 13 new centres across Telangana, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala — expected to add 12,000–15,000 enrolments. PW is also expanding its online offerings with localized, language-led courses in the region, targeting 50% enrolment growth in FY27.