Physicswallah Limited conducted its Q4 and FY26 earnings conference call on May 27, 2026, at 06:00 P.M. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Full Year FY26 Results:

  • Revenue from operations: ₹3,900 crores, representing 35% year-on-year growth
  • Pre-Ind AS EBITDA: ₹300 crores, a 3x increase from ₹93 crores in FY25
  • PBT: Positive ₹10 crores (compared to negative ₹259 crores in FY25)
  • PAT: Negative ₹24 crores (improved from negative ₹243 crores in FY25)
  • The PAT would have been positive but for one-time expenses of ₹63 crores related to implementation of Labour Code and IPO expenses

Q4 FY26 Results:

  • Revenue from operations: ₹919 crores, representing 51% year-on-year growth
  • Pre-Ind AS EBITDA: ₹9 crores (compared to negative ₹139 crores in Q4 FY25)

Business Segment Performance

Online Business:

  • Contributed 50.1% of overall revenues (up from 48.6% in FY25)
  • Grew at 39% year-over-year
  • 4.9 million paid students across multiple categories (20% year-over-year increase)
  • Target: Online business to contribute 55% of overall revenues in next three years

Offline Business:

  • Grew 31% year-over-year to ₹1,775 crores
  • Operates 353 centers across PW and other brands
  • Vidyapeeth (VP) offering contributes 70% of offline revenue
  • Offline business improved from negative 19% EBITDA in FY25 to negative 10% in FY26
  • 60% of Vidyapeeth centers (72 out of 116) are now profitable
  • Target: Offline business to achieve full-year profitability in FY27 with steady-state margins of 13-15%

Operational Metrics

  • Total paid enrolments: 10 lakh new enrolments (20% year-on-year growth)
  • Vishwas Diwas performance: 36% year-over-year growth in collections, 21% growth in enrolments, 12% growth in ARPU
  • Marketing spend: ₹353 crores (9% of overall revenues)
  • Cash flow from operations: Generated over ₹800 crores
  • Current treasury: ₹5,027 crores (includes ₹2,300 crores from IPO proceeds)
  • Refund rate: Less than 2% overall for the group

AI Initiatives and Product Development

  • Ask AI: Launched last quarter with over 3 million queries solved
  • AI-powered books, AI Guru, AI Grader continuously improving
  • Aryabhatta small language model: Open source, trained on 4 billion parameters
  • Aryabhatta 2.0: Coming soon, trained on 20 billion parameters
  • Socratic AI Tutor: Planned launch with good initial beta testing results
  • AI-assisted code: 91% of code now AI-assisted, driving 2x improvement in engineering velocity
  • AI Counselor: 75% cheaper, handling 6,000+ daily calls through AI voice agents

Strategic Developments and Capital Allocation

Acquisitions and Partnerships:

  • Saarthi acquisition: Performing well, working on multiple synergies in tech build and distribution leverage
  • Saarthi will continue to run as independent brand in UPSC space

K-12 Strategy Shift:

  • Moving to 100% asset-light approach for K-12
  • No capital allocation for M&A in K-12 domain
  • Focus on online growth: State boards category showed 9x revenue jump, Curious Junior showed 4x revenue jump
  • School integration partnerships showing 3x growth

NBFC Initiative:

  • ₹120 crores investment in wholly owned NBFC company
  • Educational loans primarily for PW students (70%) and outside students (30%)
  • Less than 1% NPA demonstrated over past two years
  • Short-duration educational loans

Growth Drivers and Market Expansion

  • Strong growth in new categories: state boards, vernacular batches, Curious Junior, foundation and pre-foundation courses
  • Southern India expansion: 100% improvement in collections from FY25 to FY26
  • Successful penetration in Telugu market (Andhra and Telangana)
  • Plans for partnership with Southern market assets and online-first players

Guidance and Outlook

  • Revenue growth guidance: More than 30% for FY27
  • EBITDA guidance: Upwards of 100% improvement for FY27
  • Commitment to full-year PAT profitability for FY27
  • Target to reduce marketing costs by 20% over next three years
  • Plans to report segment reporting (SOTP) for online and offline businesses going forward

Management Commentary

The management emphasized the company's focus on online-first, community-led platform strategy. They highlighted the mission of affordable education throughout Bharat and shared success stories of students from diverse backgrounds achieving academic success through PW's platforms. The company remains committed to AI investment and developing cost-effective educational solutions for Indian students.

Investor Relations

  • The disclosure is hosted on the company's website: https://www.pw.live/investor-relations
  • Planning an investor day in upcoming months