Physicswallah Q2 FY27 results: net profit up 106.0% to ₹143.63 crore, revenue up 18.2%

How did Physicswallah perform in Q2 FY27?

Physicswallah reported consolidated revenue of ₹1,242 crore for Q2 FY27, up ₹191.02 crore or 18.2% from ₹1,051 crore in Q2 FY26 and up ₹188.31 crore or 17.9% from ₹1,054 crore in Q1 FY27. Total income was ₹1,334.64 crore, up ₹236.23 crore or 21.5% from a year earlier and ₹171.83 crore or 14.8% from the previous quarter.

Consolidated EBITDA was ₹275.88 crore at a 22.2% margin, compared with ₹181.13 crore and 17.2% in Q2 FY26 and a loss of ₹56.90 crore at -5.4% in Q1 FY27. Profit before tax was ₹209.10 crore, against ₹98.85 crore a year earlier and a loss of ₹84.21 crore in the previous quarter, while net profit was ₹143.63 crore against ₹69.71 crore and a loss of ₹88.28 crore respectively.

Basic EPS was ₹0.49 in Q2 FY27, up ₹0.21 from ₹0.28 in Q2 FY26, and against a loss of ₹0.27 in Q1 FY27. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 on 4 November 2026.

What changed in Physicswallah's costs and profit?

Total expenses were ₹1,105.43 crore in Q2 FY27, up ₹105.88 crore or 10.6% from ₹999.55 crore in Q2 FY26. Employee cost rose ₹49.32 crore or 10.4% to ₹522.38 crore, other expenses rose ₹23.55 crore or 6.4% to ₹392.35 crore, depreciation rose ₹8.34 crore or 8.0% to ₹113.03 crore, and finance costs rose ₹1.26 crore or 5.1% to ₹26.02 crore. Cost of materials fell ₹6.26 crore or 23.1% to ₹20.85 crore.

Other income was ₹92.38 crore, up ₹45.21 crore or 95.8% from ₹47.17 crore in Q2 FY26, while a charge of ₹20.11 crore was recorded as an exceptional item against no exceptional item a year earlier. Tax expense was ₹66.86 crore, up ₹37.71 crore or 129.4% from ₹29.15 crore, and the exceptional charge weighed on profit before tax of ₹209.10 crore.

Against Q1 FY27, total expenses fell ₹141.59 crore or 11.4% to ₹1,105.43 crore, with other expenses down ₹120.71 crore or 23.5% and cost of materials down ₹14.62 crore or 41.2%. Employee cost fell ₹5.95 crore or 1.1%, while finance costs rose ₹0.52 crore and depreciation rose ₹2.36 crore. Other income fell ₹16.48 crore or 15.1% to ₹92.38 crore, and tax expense rose ₹62.90 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,292.6 crore, up ₹394.28 crore or 20.8% from ₹1,898.32 crore in H1 FY26. Total income was ₹2,493.84 crore, up ₹493.30 crore or 24.7% from ₹2,000.54 crore, and basic EPS was ₹0.19 against a loss of ₹0.19.

Profit before tax moved from a loss of ₹53.22 crore in H1 FY26 to a profit of ₹126.13 crore in H1 FY27. Profit after tax was ₹55.35 crore against a loss of ₹57.3 crore, a difference of ₹112.65 crore, and EPS improved by ₹0.38 to ₹0.19.

What do the balance sheet and cash flow show?

Total assets stood at ₹8,326.68 crore as at 30 September 2026, against ₹7,676.8 crore as at 31 March 2026. Total equity was ₹4,708.88 crore compared with ₹4,570.76 crore, borrowings were ₹11.95 crore against ₹10.50 crore, and cash was ₹172.59 crore against ₹359.50 crore. Inventories rose to ₹124.22 crore from ₹101.89 crore, trade receivables fell to ₹74.35 crore from ₹81.80 crore, and trade payables were ₹249.25 crore against ₹248.59 crore.

For H1 FY27, operating cash flow was ₹827.57 crore, against ₹927.55 crore in H1 FY26. Investing cash flow was negative ₹872.45 crore against negative ₹794.06 crore, financing cash flow was negative ₹142.03 crore against negative ₹127.33 crore, and capital expenditure was ₹156.09 crore against ₹104.2 crore.

How has Physicswallah done over the last 5 quarters?

Revenue moved unevenly across the last five quarters, dipping to ₹918.80 crore in Q4 FY26 from ₹1,082.42 crore in Q3 FY26 before rising to ₹1,242.26 crore in Q2 FY27, the highest level in the period shown. The Q2 FY27 figure also exceeded ₹1,053.95 crore in Q1 FY27 and ₹1,051.24 crore in Q2 FY26.

Profit after tax was negative in the two quarters before Q2 FY27, at -₹69.14 crore in Q4 FY26 and -₹88.28 crore in Q1 FY27, against ₹69.71 crore in Q2 FY26 and ₹102.27 crore in Q3 FY26. The ₹143.63 crore recorded in Q2 FY27 was the highest in the five quarters.

The EBITDA margin followed the same path, moving from 21.8% in Q3 FY26 to 3.1% in Q4 FY26 and -5.4% in Q1 FY27, then rising to 22.2% in Q2 FY27, the highest margin in the period. The direction now is upward on both revenue and profitability.

Which businesses drove the quarter?

Online revenue was ₹693.52 crore in Q2 FY27 with EBIT of ₹250.4 crore, giving an EBIT margin of 36.1%. The investor presentation showed Online revenue of ₹694 crore against ₹549 crore a year earlier, growth of 26.4%, with Pre-IndAS EBITDA of ₹239 crore against ₹162 crore.

Offline revenue was ₹540.87 crore with EBIT of ₹68.0 crore, an EBIT margin of 12.6%. The presentation showed Offline revenue of ₹541 crore against ₹496 crore, growth of 9.0%, with Pre-IndAS EBITDA of -₹8 crore against -₹7 crore a year earlier.

Others recorded revenue of ₹7.87 crore and EBIT of ₹2.42 crore, while revenue from discontinued operations was ₹5.11 crore with EBIT of ₹1.34 crore. The presentation showed Other revenue of ₹8 crore against ₹6 crore a year earlier, growth of 22.4%, with Pre-IndAS EBITDA of ₹2 crore against ₹6 crore.

What else did the company announce?

Alongside the results, the board approved the acquisition of 25,599 equity shares of Utkarsh Classes & Edutech Private Limited under Tranche IV of the existing share acquisition terms agreement, representing 12.25% of its fully diluted equity share capital for ₹2,55,990 in cash. This increased Physicswallah's shareholding in Utkarsh Classes from 75.50% to 87.75%, and the company said it intended to complete the acquisition in three months.

The board also approved a third amendment to the share acquisition terms agreement, replacing the PAT-linked valuation mechanism for Tranche IV with a mutually agreed fixed purchase consideration and dispensing with the acquisition under Tranche V. The filing said the transaction was consistent with the company's core education business and did not involve a related party. No dividend or fund raise was set out in the same-day filings.

What did Physicswallah's management say?

Management said the first-half turnaround reflected operating leverage, with AI automation resolving 80% of student support queries and writing 92% of committed code, while content, faculty and platform costs were spread across more learners. It said Online was broadening beyond JEE and NEET, and Offline reduced its H1 loss while opening centres more slowly. The company expects to give South India dedicated leadership attention across localisation, brand building, faculty development and on-the-ground execution over the next 24 months.

Management said it plans to open 25-30 centres annually for the next two years, and that five residential centres provide ~500 seats, with an ambition of a 15% share of the top 100 JEE and NEET ranks by 2029. It said PW has increased its Xylem ownership to 77.27%, with a pathway to full ownership by FY30, and that PhysicsWallah Digital University's first admission cycle is expected in July 2027 with 16+ programmes planned.

On risks, management said NEET recovery remained incomplete, with PW Online NEET collections about 7% below last year and enrolments about 13% below, while PW Offline NEET enrolments for the academic year were about 8% lower. It attributed this to a shorter post-result window and Xylem's NEET concentration, and said the gap was expected to show in full-year NEET numbers. Management also said Government Exams remained weak, with H1 enrolments down 24% and collections down 14%, and that the H1 Pre-IndAS EBITDA loss for Offline was ₹108 Cr at a -10.5% margin.