The educational technology company PhysicsWallah demonstrated a reduction in its net loss for the first quarter of the 2027 fiscal year (Q1FY27) to 88.28 crore rupees, compared to 127 crore rupees in the same period last year. However, the loss sequentially increased from 69.14 crore rupees in the fourth quarter of the 2026 fiscal year (Q4FY26).
The company's operating revenue reached 1,053.95 crore rupees, which is 24.4 percent higher compared to the previous year (847.09 crore rupees). The company reported a positive EBITDA figure of 52 crore rupees, with the margin improving to 4.9 percent.
Total expenses in the reporting quarter, ending June 30, increased by 18.29 percent to 1,247.02 crore rupees, compared to 1,054.2 crore rupees a year ago. In the previous quarter, the company's expenses were at 1,035.19 crore rupees.
As of June 30, 2026, the company's cash reserves amounted to 5,601 crore rupees, including funds from the Initial Public Offering (IPO). The Noida-based firm went public last November.
Management Comments
Alakh Pandey, founder and CEO of PhysicsWallah, noted that this quarter marks an important milestone on the company's path to sustainable profitability. He stated that the company continues to expand its student base across online, offline, K-12, and other new categories, reflecting the deepening and broadening of the sales funnel. Pandey emphasized that the focus remains on scaling this accessible online education technology platform while maintaining disciplined capital allocation.
The company also noted the impact of the cancellation of the National Eligibility cum Entrance Test (Undergraduate) (NEET) due to the material leak scandal. It was pointed out that the examination cycle was postponed in the current year, leading to a temporary change in admission timelines and a decrease in NEET applicants in Q1FY27.
In the letter to shareholders, it was mentioned that collections for online NEET groups fell by 28 percent in the first quarter, which is entirely attributable to this calendar shift. The exam and result announcement cycle, which usually drives peak activity in the first quarter, were compressed and moved approximately one month later, outside the reporting period.
The company's online revenue grew by 33 percent compared to last year, reaching 549 crore rupees, while revenue from the offline segment increased by 14 percent compared to last year, amounting to 490 crore rupees. Furthermore, the company reported that K-12 and early learning online education continues to gain significant popularity: the number of enrolled students increased by 41 percent compared to last year, reaching 0.78 million from 0.55 million, and the revenue from this segment increased by 88 percent compared to last year, reaching 105 crore rupees from 56 crore rupees.
