PhysicsWallah’s Q3 top and bottom line climb 33%

Edtech firm PhysicsWallah (PW) on Thursday reported about 33% year-on-year growth in both its top and bottom lines. It posted operating revenue of Rs 1,082.4 crore in Q3 FY26 and a profit after tax of Rs 102.3 crore, driven by an expanding paid user base and strong operating margins.

The paid user base of the Alakh Pandey-led firm expanded to 4.37 million in the nine months to date, with online transacting users at 3.96 million and offline enrolments at 0.41 million.

The quarter also benefited from operating leverage as EBITDA (earnings before interest, taxes, depreciation, and amortisation) climbed to Rs 351.2 crore, yielding a roughly 32% margin, which helped lift the company into profit. EBITDA is a measure of a company’s profitability of the operating business.

PW’s revenue from operations for the first nine months of FY26 stood at Rs 2,980.7 crore, about a 31% year-on-year increase, while adjusted EBITDA for the period reached Rs 647.4 crore, a nearly 22% margin. 

Operating cash flow for the nine months was Rs 642.9 crore, up from the previous full year, reflecting stronger cash generation as the business scaled. The company holds a large treasury balance of approximately Rs 5,054.4 crore, which includes net IPO proceeds of Rs 2,961.8 crore that remain largely unutilised and available for planned expansion.  

Management flagged several non-recurring or exceptional items. Standalone IPO-related expenses were about Rs 8.3 crore, and the impact of new labour codes resulted in a one-off charge of roughly Rs 13 crore on a standalone basis and Rs 15.3 crore on a consolidated basis.

The company said it is actively deploying capital through investments and acquisitions. It has invested around Rs 414.6 crore into one subsidiary as part of strategic expansion, and it agreed to acquire Guiding Light Learning for a consideration of Rs 95 crore, although the final purchase price allocation and accounting treatment remain incomplete. A smaller acquisition of Kay Lifestyle was disclosed at about Rs 2 crore. 

On costs, advertising and promotion remained a significant outlay in the quarter, with spend in the region of Rs 56 crore to Rs 64 crore, and employee benefit expenses continued to be a major ongoing item as the business invests in talent and content.