PhysicsWallah's Q2 profit jumps 70% post IPO listing

PhysicsWallah saw its profit surge 70% in its first quarterly earnings after the edtech company made its stock market debut in November at a more than 30% premium over its issue price.

The company clocked a profit of Rs 69.7 crore, compared with Rs 41.1 crore a year ago. This is particularly surprising, since PW clocked a loss of Rs 127 crore in the June quarter.

The Alakh Pandey-led company clocked a 26% rise in operating revenue to Rs 1,051.2 crore in the September quarter, compared with Rs 832.1 crore in the previous year. Sales of services accounted for the largest share of total revenue, primarily driven by coaching services. The company also records product sales and advertising revenue as other income streams.

PW, in a separate filing, said it has approved investments of up to Rs 469.9 crore in four wholly-owned subsidiaries. Its board cleared an investment of up to Rs 399.9 crore in Penpencil Edu Services, up to Rs 20 crore in Finz Fintech, and up to Rs 50 crore in Finz Finance—to be made through subscription to equity shares.

Penpencil Edu Services operates online education classes and reported a turnover of Rs 78.4 crore in FY25. Finz Finance has secured RBI approval to operate as a non-banking financial company, but has yet to begin operations, while Finz Fintech provides financial and management consulting services.

PhysicsWallah also approved an investment of up to $2 million in Dubai-incorporated Knowledge Planet Holding Ltd, which offers education support and training services.

The investments come weeks after the company raised Rs 3,480 crore through its IPO, comprising a fresh issue of Rs 3,100 crore and an offer for sale of Rs 380 crore by founders Alakh Pandey and Prateek Maheshwari.

PW had said the investments are aimed at meeting working capital needs, supporting business operations, and expansion plans for the subsidiaries. All four entities will continue to remain wholly-owned units after the proposed investments.

PhysicsWallah was founded in 2016 as a YouTube-based learning channel and has since expanded into online courses, offline classroom centres, and hybrid programmes focused largely on students in Tier II and III cities.