Edtech major PhysicsWallah reported a sharp improvement in profitability for the September quarter (Q2 FY27), with profit after tax (PAT) nearly doubling year-on-year to ₹145.5 crore from ₹72.3 crore in the corresponding quarter last year, according to results published by CNBC-TV18 on November 4, 2026, at 19:03 IST.

A sharp rebound in competitive exam enrolments and rising engagement across regional markets in South India powered the profitability gains, alongside a marked expansion in operating margins.

Revenue for the quarter increased 18.2% year-on-year to ₹1,242 crore, up from ₹1,051 crore in the year-ago period. EBITDA rose 52.5% to ₹276 crore, compared with ₹181 crore a year earlier, while the EBITDA margin expanded to 22.2% from 17.2%, an increase of roughly five percentage points. The margin expansion points to operating costs growing more slowly than revenue, a measure of how efficiently the business is scaling.

The quarter included a goodwill impairment of ₹20 crore and a fair-value gain of ₹10 crore. Both items are typically reported outside operating EBITDA under standard results presentation, so they are worth weighing separately when assessing the quarter's underlying profitability.

Alakh Pandey, Founder and CEO of PhysicsWallah Limited, said: "This quarter shows the strength of our model. We delivered record revenue and a sharp improvement in profitability, while our learner base kept widening across K-12, vernacular and new categories. Our focus remains on scaling affordable, tech-led education with disciplined capital allocation."

NEET Enrolments Grow Over 30% as Demand Rebounds

PhysicsWallah said NEET enrolments grew more than 30% in the September quarter, as demand that had been deferred following the postponement of NEET UG came through during the period. The catch-up highlights how closely enrolment timing in test preparation tracks the exam calendar, a factor that can shift results from one quarter to the next.

The company also disclosed that its online revenue for the first half of FY27 grew 29%, ahead of the 17% growth in online collections during the same period. The difference was due to the timing of revenue recognition, as course fees are recognised over the duration of the programmes.

South India Contributes 9% of H1 Revenue

South India is emerging as an important growth market for PhysicsWallah, with an addressable student base of around 15 million across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala. The region contributed 9% of the company's revenue in the first half of FY27, a single-digit share that makes it one of the clearest markers to track as the company's expansion beyond its established markets progresses.

The company is expanding its online-first model in the region through more than 70 regional-language faculty members, free educational content across over 24 YouTube channels with approximately 20 lakh (two million) subscribers, and paid regional-language batches.

During the first half, the number of learners from South India on the PW app increased 32% year-on-year to 4.1 lakh (410,000), while paid learners rose 14% to 1.17 lakh (117,000). PhysicsWallah currently operates 63 centres across the region.

The vernacular push aligns with management's stated focus on widening the learner base across K-12, vernacular and new categories, and the company is also seeing improvements in academic outcomes that are helping strengthen its brand presence. A total of 79 students secured ranks below 5,000 in the Karnataka Common Entrance Test (KCET), compared with 53 students last year. Going forward, the observable indicators include further centre additions beyond the current 63, the trajectory of paid learners in the region, and how exam-calendar timing shapes enrolments through the remainder of FY27.

Source: CNBC-TV18