PhysicsWallah shares jump 5% after Q2FY26 results – From 70% profit jump in Q2 to big AI bet, 5 key highlights - Industry News

The edtech firm reported a 70% jump in Q2FY26 net profit, strong revenue growth, expanding offline centres, rising paid users and major AI-led enhancements. This was the company’s first earnings release post-IPO.

Written by Khushboo Kumari

December 9, 2025 11:41 IST

PhysicsWallah Q2FY26 results; profit surges 70%, revenue up 26%. (Image: Canva)

PhysicsWallah reported a consolidated net profit of Rs 69.71 crore in Q2FY26, up 69.59% year-on-year from Rs 41.10 crore in Q2FY25. However, on a sequential basis, the edtech company reported a turnaround from a net loss of Rs 127 crore. The stock gave a thumbs up to the first results after listing. It has surged 5% in intra-day trade.

Here are 5 highlights from Q2FY26 performance:

Revenue rises 26% on stronger user growth

Revenue stood at Rs 1,051.2 crore, up 26.32% from Rs 832.17 crore. In H1FY26, the company’s revenue grew 29% year-on-year, primarily driven by an increase in unique paid users from 2.99 million to 3.62 million. Paid users in the online channel stood at 3.22 million (2.68 million a year ago), while offline student enrollments reached 0.40 million (0.31 million a year ago).

Physicswallah expects to turn full-year PAT positive by FY27

Physicswallah said it expects to turn full-year PAT positive in FY27 as newer online categories mature and more offline centres reach a steady state. The company added that its expansion strategy remains “disciplined, data-driven and focused on long-term value creation.”

Physicswallah ramps up offline footprint; highlights AI-led progress

The company continued to strengthen its offline presence and now operates 314 centres across India. Physicswallah highlighted the growing role of AI in its ecosystem. Its AI tools like AI Guru, AI Sahayak and AI-based grading engines have solved more than 10 crore doubts and checked over 7 lakh subjective copies. The Edtech firm said it has reduced its dependence on JEE and NEET categories as newer segments grow faster. JEE and NEET contributed 35% of online enrolments in H1 FY26, down from 38% in H1 FY25.

Physicswallah approves ESOP worth 3.67 crore options

Physicswallah has approved a fresh employee stock option scheme, under which it will grant 3,67,64,700 stock options convertible into an equal number of equity shares of face value Rs 1 each, the company said in a stock exchange filing. The scheme is subject to shareholder approval via postal ballot, while the vesting period will begin after a minimum of one year from the grant date and continue over four years, with the pricing to be decided by the NRC.

PhysicsWallah IPO

This was PhysicsWallah’s first earnings release after the company got listed on NSE and BSE on November 18. The IPO comprised a fresh issue of 284,468,537 equity shares and an offer for sale of 34,862,384 equity shares, each with a face value of Rs 1, aggregating to Rs 34,800 million. The fresh issue alone generated Rs 3,100 million in proceeds.

The company said it generated free cash flow of Rs 644.1 crore in the first half of the year. Its treasury stood at Rs 2,551.9 crore as of September 30, excluding IPO proceeds.