PhysicsWallah has done something no Indian edtech startup has managed in years: crossed Rs 1,000 crore in quarterly revenue while cutting its losses. The Alakh Pandey-founded company reported operating revenue of Rs 1,054 crore for Q1 FY27, up 24.4% from Rs 847.1 crore in the same quarter last year.
The June quarter also brought the company its first taste of EBITDA positivity in years. PhysicsWallah posted an EBITDA of Rs 52 crore with a 4.9% margin, against an EBITDA loss of Rs 21 crore a year ago.
Loss down 30.5%, still in red
Net loss narrowed 30.5% to Rs 88.3 crore from Rs 127 crore in Q1 FY26, though it widened 27.8% sequentially from Rs 69.1 crore. Other income of Rs 108.9 crore took total income to Rs 1,162.8 crore, while expenses rose 18% YoY to Rs 1,247 crore.
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Adjusted EBITDA jumped more than fivefold to Rs 135 crore from Rs 26 crore, with the margin expanding to 12.9% from 3.1%. Adjusted EBITDA excludes share-based payments and exceptional items.
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Online business leads the charge
PW’s online segment remained the biggest contributor to operating profitability, with revenue jumping 33% YoY to Rs 549 crore. Unique online transacting users rose 2.4% to 21.5 lakh, while average collection per user increased 9.7% to Rs 4,311.
Online K-12 and early-learning categories reported an 88% YoY jump in revenue to Rs 105 crore, with enrolments up 41% to 7.8 lakh. School boards, foundation courses, Olympiad prep and the Curious Jr programme drove the growth.
Offline still bleeding, but improving
Offline revenue grew 14.5% to Rs 490 crore, with enrolments up 5% to 3.5 lakh. The network expanded to 366 centres as of June 2026, from 303 a year earlier. However, the offline business posted a pre-Ind AS EBITDA loss of Rs 106 crore, narrowing marginally from Rs 113 crore, with the negative margin improving to 22% from 26%.
PW said newer offline centres typically incur upfront costs on faculty, rent and infrastructure before enrolments scale over successive academic cycles.
NEET delay, Sarrthi stake and what lies ahead
The postponement and re-examination of NEET UG delayed the usual enrolment cycle. Online NEET collections declined 28% in Q1 as the post-exam admissions cycle moved beyond the reporting quarter.
In July, PW acquired an additional 11% stake in UPSC coaching institute Sarrthi IAS for Rs 71.81 crore, taking its holding from 40% to 51%. The transaction is the second tranche of an agreement to acquire up to 85% in six tranches through FY31. Total paid users rose 2.4% to 24.9 lakh, while daily active users grew 26% to over 40.3 lakh.
Why it matters
The Rs 1,000 crore quarter is a milestone for Indian edtech, a sector that spent years burning cash. PW is now showing that scale and discipline can go together. If the offline centres mature and the online engine keeps compounding, the company’s path to sustained profitability looks clearer than it has in years.