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Physicswallah Q1 revenue rises 24 per cent as net loss narrows to Rs 88 crore
Online business leads growth as offline expansion and higher costs weigh on profits
NOIDA: Edtech unicorn Physicswallah has started FY27 with a sharper top line but continued losses, as revenue growth across its online and offline businesses was accompanied by higher expansion and operating costs.
Consolidated revenue from operations rose 24.4 per cent year on year to Rs 1,053.95 crore in Q1 FY27, compared with Rs 847.09 crore in the year-ago quarter. Total income increased to Rs 1,162.81 crore from Rs 902.13 crore.
The company’s consolidated total expenses, however, rose to Rs 1,247.02 crore from Rs 1,054.20 crore a year earlier. As a result, Physicswallah reported a net loss of Rs 88.28 crore, although the loss narrowed from Rs 127.01 crore in Q1 FY26.
Total comprehensive loss attributable to owners of the parent stood at Rs 78.12 crore.
For the first time, Physicswallah has reported its performance across three operating segments under Ind AS 108: online, offline and others.
The online segment remained the strongest performer, with revenue rising to Rs 548.79 crore from Rs 412.14 crore in Q1 FY26. The segment reported a profit of Rs 75.90 crore.
The offline segment generated Rs 489.90 crore in revenue, up from Rs 427.90 crore a year earlier. However, it reported a segment loss of Rs 27.17 crore, with depreciation and amortisation of Rs 77.59 crore and finance costs of Rs 21.80 crore weighing on the business.
The others segment, which includes hardware, financing and K-12 support, contributed Rs 15.26 crore in revenue and reported a loss of Rs 4.50 crore.
Employee benefit expenses remained the company’s biggest cost at Rs 528.33 crore, while direct operational costs stood at Rs 166.43 crore. Advertisement and publicity expenses reached Rs 128.47 crore as the company continued to invest in student acquisition and brand building.
Physicswallah is continuing to deploy the proceeds from its November 2025 IPO as it expands its education ecosystem.
The company used Rs 257.20 crore of IPO proceeds during Q1 FY27. Of this, Rs 127.76 crore went towards inorganic growth and corporate purposes, while Rs 43.25 crore was allocated to marketing initiatives.
A further Rs 44.42 crore was used for lease payments for offline and hybrid hubs, Rs 22.59 crore for cloud and server infrastructure, and Rs 14.28 crore for new offline centre fit-outs.
Investments in subsidiaries, including Xylem and Utkarsh, amounted to Rs 4.87 crore.
As of 30 June, Physicswallah had Rs 2,016.78 crore of unutilised IPO proceeds held in fixed deposits and monitoring accounts with scheduled commercial banks.
The company also expanded into adjacent services during the quarter.
Physicswallah Student Housing Pvt Ltd was incorporated on 18 June with an initial equity investment of Rs 5.01 crore. The entity will provide managed hostel facilities for students enrolled in offline programmes.
Physicswallah also invested Rs 120 crore in its wholly owned fintech arm, Finz Finance Pvt Ltd, to strengthen student financing services.
On a standalone basis, operational revenue stood at Rs 927.72 crore and total income at Rs 1,035.31 crore. Standalone net loss narrowed sharply to Rs 26.34 crore from Rs 97.64 crore in Q1 FY26, despite advertising expenditure of Rs 113.45 crore.
Physicswallah’s latest quarter shows a business still spending heavily to build scale, but with its core online operation already profitable and a sizeable IPO cash buffer available to fund its next phase of expansion.
