Physicswallah Q2 FY26 results: net profit ₹69.71 crore

How did Physicswallah perform in Q2 FY26?

Physicswallah reported consolidated revenue of ₹1,051 crore for Q2 FY26, the July–September 2025 quarter. EBITDA was ₹181.13 crore, giving a margin of 17.2%, while profit before tax was ₹98.85 crore and net profit was ₹69.71 crore. Basic EPS was ₹0.28. Total expenses were ₹999.55 crore and other income was ₹47.17 crore, with no exceptional item reported in the quarter.

On a standalone basis, revenue from operations was ₹895.85 crore and profit for the period was ₹89.11 crore, with basic EPS of ₹0.34 for the quarter. The board, at its meeting on 8 December 2025, approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2025, and the figures were covered by the auditor's limited review.

For the first half of FY26, consolidated revenue was ₹1,898.32 crore and total income was ₹2,000.54 crore, while profit before tax was a loss of ₹53.22 crore and net profit was a loss of ₹57.3 crore, with EPS of -₹0.19. The shareholders' letter said revenue in H1 FY26 grew 29% YoY, driven mainly by an increase in unique paid users from 2.99 M to 3.62 M, with online paid users at 3.22 M and offline student enrolments at 0.40 M.

What do the balance sheet and cash flow show?

As on 30 September 2025, total assets were ₹4,950.08 crore and total equity was ₹1,447.18 crore. Borrowings stood at ₹6.86 crore and cash and cash equivalents were ₹59.87 crore. Inventories were ₹88.42 crore, trade receivables ₹45.84 crore and trade payables ₹221.28 crore. The shareholders' letter put treasury at ₹25,519 M as of 30 September 2025, excluding IPO proceeds.

For the first half of FY26, cash flow from operating activities was ₹927.55 crore, investing activities used ₹794.06 crore and financing activities used ₹127.33 crore. Capital expenditure in the period was ₹104.2 crore. The shareholders' letter said free cash flow for H1 FY26 was ₹6,441 M, compared with ₹5,434 M in H1 FY25.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025, following the recommendation of the audit committee. The meeting began at 05:00 P.M. IST and concluded at 07:00 P.M. IST. The company also filed a shareholders' letter dated 8 December 2025, which set out the outlook for FY27 and said the company would be PAT-positive for the full year.

What did Physicswallah's management say?

Management said Q3 FY26 would be the strongest quarter, with the highest top line and highest EBITDA margin, which it expects to be above 20%. It said H2 FY26 revenue would be more than H1, and that full-year FY26 marketing spend would be 8-9% of revenue against 9.6% in FY25, after about 10% in the first half, with 14% in Q1 and 8% in Q2.

Management said the offline business will grow sustainably at 25-30%, below the 40-50% growth of prior years, with FY27 targeted as the year the offline business becomes EBITDA-level profitable and FY28 as the year it becomes PAT-level profitable. It said 72 of 117 Vidyapeeth centres were currently profitable out of 314 offline centres, that 75 new offline centres are planned in FY26 and 200 over three years, and that first-year centre EBITDA of -5% scales to +13% by year 3.

On priorities and risks, management said online average revenue per user rose about 8% YoY, offline ARPU declined about 4% YoY on a mix shift toward short-term 3-6 month courses, and offline centres take 18 months to EBITDA breakeven and 24-36 months for RoC. It also flagged lecture faculty attrition of 15-17% and support staff attrition of 25-27%, and said separate online and offline EBITDA reporting will start from Q1 FY27. The company acquired a 40% stake in Sarrthi IAS for UPSC, scaling to 85% by FY28.

How did Physicswallah shares react?

The results were filed after market hours on 8 December 2025. The stock traded at ₹142.75 when the filing appeared, up 1.1% after 5 minutes, then moved to -1.7% after 15 minutes and -2.1% after 30 minutes. It closed 0.5% lower than the previous close of ₹135.94 on the reaction day.

By the next day's close, the stock was down 3.9% from its pre-results close. By the fifth session, it was up 1.1% from the same pre-results close, and over one month it was down 5.0%. The Other Consumer Services industry, which comprises 26 stocks, rose 0.6% on the reaction day, 0.6% by the next session and 2.3% by the fifth session, so Physicswallah lagged the industry median by 1.0 percentage point on the day and 4.5 percentage points by the next session.

The Nifty Smallcap 250 rose 1.0% on the reaction day, 0.3% by the next session and 1.3% by the fifth session. No earlier results-day reactions are available for Physicswallah.