PhysicsWallah cuts losses sharply in Q4; revenue jumps 51%, margins expand amid AI drive

PhysicsWallah Ltd on Wednesday, May 27, reported a sharp fall in its losses in the fourth quarter of FY26, aided by strong revenue growth and improved operating leverage across its online and offline businesses.

The company posted a consolidated net loss of ₹74.9 crore for Q4FY26, compared to a loss of ₹293.1 crore in year-ago period. Revenue from operations rose 50.7% year-on-year to ₹918.8 crore from ₹609.6 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹28.8 crore for the quarter, compared to an EBITDA loss of ₹228.5 crore a year ago. The EBITDA margin improved to 3.1% from a negative 37.5% in the year-ago period.

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For FY26, PhysicsWallah reported revenue of ₹3,900 crore, up 35% from ₹2,887 crore in FY25. EBITDA more than doubled to ₹549 crore from ₹193 crore a year ago, while the EBITDA margin expanded to 14.1% from 6.7%. The company’s annual net loss narrowed sharply to ₹24 crore from ₹243 crore in FY25.

PhysicsWallah said the improvement in profitability was driven by operating leverage, tighter cost discipline and AI-led automation across functions. The company added that its paid user base increased 20% year-on-year to 5.34 million in FY26, while online paid users rose to 4.87 million and offline enrolments increased to 0.47 million.

The company’s offline business continued to scale during the year, with its centre network expanding to 353 centres across India and the UAE, compared to 198 centres a year ago. Offline revenue grew 31% year-on-year to ₹1,774 crore, while online revenue increased 39% to ₹1,954 crore.

In the shareholder letter, Co-Founders Alakh Pandey and Prateek Maheshwari said the company is increasingly adopting an AI-first approach across teaching, counselling, operations and product development. PhysicsWallah said its AI tools have resolved over 99 million student queries and are being integrated across grading, learning support and voice-based tutoring systems.

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The company also highlighted strong traction in newer initiatives such as skill development platform, Earners, PW Pi and PW Talks, while noting that Vishwas Diwas 2026 collections rose 36% year-on-year to ₹205 crore.

Shares of PhysicsWallah ended flat at ₹112.10 ahead of the earnings announcement on Wednesday. The stock has declined more than 15% so far this year and about 28% over the last 12 months.

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