PhysicsWallah is preparing to widen its presence across offline centres and newer exam categories as it enters its next phase of expansion. The company is particularly focused on state board preparation and foundational grades. Co-founder Prateek Maheshwari spoke to Anees Hussain after the company announced the price band of its upcoming IPO. Excerpts:
Q. What are the immediate growth priorities for PhysicsWallah over the next few years?
The priority now is to deepen our academic footprint across multiple exam categories and build a strong foundation in offline centres. State board examinations offer a very large headroom for growth and remain relatively under-served. We have already started investing in content and faculty for those segments. Similarly, the grade 6–10 segment we launched in the last two years has been in hyper-growth mode because parents see clear value in structured support at the foundational level. We believe a blended learning model compounds trust and outcomes. Students come to us first through free online content, build a connection with the teaching style, and then many of them choose structured mentorship offline.
Q. What gives you confidence that the offline model can scale sustainably?
Offline centres are capex-heavy initially, but the economics are strong once a centre stabilises. Most centres break even within 12–18 months and then start generating healthy margins. The centres we launched in FY24 and FY25 are already profitable. Steady-state margins for offline settle around 15–18%, and that forms a very strong compounding base as the network grows. We have also seen clear operational leverage. Payroll expenditure as a share of revenue has come down from 59% to 52%, and this efficiency continues as scale increases. Average realisation per user (Apru) in offline naturally tends to be higher because structured classroom guidance adds value. Over the next decade, this model has the potential to compound consistently.
Q. Faculty attrition has been a key point of discussion in edtech and coaching. How are you managing it?
Attrition is predominantly performance-driven, not poaching-driven. Students rate every class, and continuous feedback is taken very seriously. If sustained improvement isn’t visible even after multiple interventions, we prioritise student experience. At the same time, we have invested deeply in teacher development. Today, 80–90% of our faculty are full-time employees. In exam categories like UPSC, where consultant models are common, we work on exclusive contractual arrangements.
Q. Have acquisitions played a meaningful role in your journey?
Our approach has always been build-first. It ensures cultural continuity and academic integrity. Total acquisition spend has been under $50 million, and revenue contribution from those entities is under 15%. Xylem helped us accelerate geographical expansion, and PrepOnline played a key role in building our publication business. iNeuron helped us develop skills offerings but integration was more complex. Today, we are not actively pursuing large acquisitions because our organic growth has been strong – we have grown revenues four times in two years.
Q. And how should investors view the profitability path?
Our online business is already profitable. Offline centres generally turn positive in 12–18 months, and many of our recent centres have already reached that point. Operational leverage continues to improve. So the path to profitability is clear as scale compounds.
