Indian edtech company PhysicsWallah has shown strong growth in FY26, with revenue touching nearly ₹4,000 crore and losses falling sharply. The company, which started as a low-cost online coaching platform, is now growing across offline education, AI tools, and multiple exam categories.
Over the last few years, PhysicsWallah has become one of the biggest names in India’s education sector. But along with rapid growth, the company has also faced issues like teacher exits, legal disputes, and questions around its high market valuation.
Revenue Growth and Profitability Improve
PhysicsWallah reported around ₹3,900 crore revenue in FY26, showing nearly 35% year-on-year growth. The company also managed to reduce its net loss to just ₹24 crore, a huge improvement compared to earlier years.
In FY24, the company had reported a loss of more than ₹1,100 crore because of accounting adjustments and impairment charges linked to acquisitions. In FY25, losses came down to ₹243 crore, and FY26 brought the company very close to profitability.
The company’s EBITDA grew strongly to ₹549 crore, while operating cash flow reached ₹833 crore. PhysicsWallah also built a treasury reserve of more than ₹5,000 crore, giving it strong financial support for future expansion.
Its October to December quarter remained the strongest period of the year, with revenue crossing ₹1,080 crore and profits going above ₹100 crore. The January to March quarter was relatively weaker because the coaching business is seasonal, with most student admissions happening between March and September.
IPO Helped PhysicsWallah Enter a New Phase
PhysicsWallah launched its IPO in November 2025 with an issue size of ₹3,480 crore. The shares were priced at ₹109 and listed at around ₹145, giving investors a strong listing gain.
The successful IPO also made co-founder Alakh Pandey a billionaire. Along with co-founder Prateek Boob, he held more than 40% stake in the company before the IPO.
At current market prices, PhysicsWallah’s valuation is estimated between ₹31,000 crore and ₹39,000 crore. The company has also approved a 1:35 bonus issue for shareholders.
Still, some analysts believe the stock is expensive compared to its earnings. Concerns have also been raised about how much of the company’s profit comes from treasury income instead of core operations.
Low Pricing Helped PW Build a Massive User Base
One of PhysicsWallah’s biggest strengths has been affordable pricing. While many coaching institutes charge ₹60,000 to ₹80,000 for JEE and NEET courses, PW offers its flagship online courses for around ₹4,500 to ₹4,800.
This strategy has helped the company attract millions of students across India. Paid users increased from 4.46 million in FY25 to 5.34 million in FY26.
The platform now has more than 3.3 million daily active users, with students spending over 100 minutes every day on the app.
PhysicsWallah also has a huge reach on YouTube. The company runs more than 200 channels with nearly 99 million subscribers and over 22 billion total views. Its main YouTube channel alone has more than 13 million subscribers.
Apart from JEE and NEET, the company has expanded into UPSC, government exams, commerce, GATE, and state board education in regional languages like Hindi, Marathi, Bangla, Gujarati, Kannada, and Odia.
AI Is Playing a Bigger Role in Operations
PhysicsWallah is heavily investing in artificial intelligence to improve learning and reduce costs. More than 100 employees are working in the AI division, and over 90% of internal coding is reportedly AI-assisted.
The company has built its own AI models, including Aryabhata, ConceptGuru, and Awaaz. These tools are being used for doubt-solving, grading, mentoring, and student support.
Its AI Guru tool has solved nearly 100 million student queries, while AI Grader has checked more than 1.4 million answer sheets. PhysicsWallah says these tools have helped reduce operational costs significantly.
The company is also using AI voice bots for student counselling calls, helping cut counselling expenses.
Rapid Expansion Also Brings Challenges
PhysicsWallah’s offline network has grown quickly from just 28 centres in FY23 to more than 350 centres across India and the UAE.
But fast growth has also brought challenges. Teacher attrition became a major concern, with many faculty members leaving the company over the last few years.
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Some former teachers have accused the company of sudden exits and pressure from student review systems. PhysicsWallah has also faced legal complaints involving rival coaching institute FIITJEE and incidents at offline centres.
Even with these issues, PhysicsWallah continues to expand aggressively into new markets and categories. With improving finances, strong student growth, and rising AI adoption, the company is now entering a crucial stage where long-term stability and execution will matter as much as growth.