PhysicsWallah Revenue Rises 24% as Q1 Loss Narrows

PhysicsWallah reported a 24.4 per cent year-on-year rise in revenue from operations to ₹1,054 crore in Q1 FY27, while its net loss narrowed 30.7 per cent to ₹88 crore.

The figures in the supplied results report are based on the company’s consolidated financial statements sourced from the National Stock Exchange. PhysicsWallah’s revenue from operations stood at ₹847 crore in Q1 FY26, while its net loss was ₹127 crore in the year-ago quarter.

The company’s online business remained the largest contributor, generating ₹549 crore during the quarter, up 33.3 per cent from ₹412 crore a year earlier. Offline revenue increased 14.5 per cent to ₹490 crore, while revenue from other sources more than doubled to ₹15 crore.

PhysicsWallah also recorded ₹108 crore in other income during the quarter. This took total income to ₹1,162 crore, compared with ₹902 crore in Q1 FY26.

Expenses increased at a slower pace than revenue. Total expenditure rose 18.3 per cent to ₹1,247 crore from ₹1,054 crore a year earlier, according to the supplied financial results.

Employee benefits remained the company's largest expense at ₹528 crore, up 15.8 per cent from ₹456 crore. Depreciation increased 12.7 per cent to ₹110 crore, while finance costs declined 23.1 per cent to ₹25.5 crore.

The combination of higher revenue and slower expense growth helped PhysicsWallah reduce its quarterly net loss. The company reported a loss of ₹88 crore in Q1 FY27, compared with ₹127 crore in Q1 FY26.

The sequential picture was less positive. Revenue from operations increased 14.7 per cent from ₹918.8 crore in Q4 FY26, but the net loss widened 27.7 per cent from ₹69.14 crore.

PhysicsWallah entered FY27 after reporting ₹3,900 crore in FY26 consolidated sales, according to financial-data provider Screener. Its FY26 consolidated net loss was ₹24 crore, compared with a ₹243-crore loss in FY25.

The company had also continued expanding its education portfolio through acquisitions. In July, PhysicsWallah's board approved an additional ₹71.8-crore investment in Sarrthi IAS, increasing its stake from 40 per cent to 51 per cent. The transaction makes the UPSC coaching platform a subsidiary of PhysicsWallah.

The Sarrthi IAS transaction is part of a broader acquisition plan. According to the transaction disclosures, PhysicsWallah can acquire up to 85 per cent of the company through six tranches between FY26 and FY31, with later purchases linked to performance.

Sarrthi IAS reported ₹76.52 crore in revenue in FY26, compared with ₹28.46 crore in FY25 and ₹1.04 crore in FY24, according to information reported from the transaction filing. Its net worth stood at ₹33.96 crore at the end of FY26.

The expansion gives PhysicsWallah a larger presence in civil-services preparation beyond its established JEE, NEET and school-education businesses. It also reflects the company's strategy of adding specialised education platforms rather than relying entirely on organic expansion.

PhysicsWallah had previously informed the exchanges that its trading window would remain closed from July 1 until 48 hours after the announcement of its unaudited results for the quarter ended June 30, 2026.

For investors, the Q1 numbers present a mixed picture. Revenue growth remained strong and the year-on-year loss narrowed, but the company continued to report a quarterly loss and its sequential loss increased.

The next focus will be whether PhysicsWallah can maintain online and offline revenue growth while controlling employee, infrastructure and other operating costs. Its ability to integrate Sarrthi IAS and other businesses will also become relevant as the education company expands into additional competitive-exam segments.