“We want to grow sustainably. You will see improvements in both revenue and profitability as we scale. Both numbers will rise over the next three to four years because the total addressable market is huge,” Pandey told analysts during a post-earnings call.
The Noida-based company reported a 26% year-on-year increase in operating revenue to Rs 1,051 crore for the July-September period in its first quarterly results as a public company. It also posted a 70% increase in net profit to Rs 70 crore. The online channel continues to be the primary driver of scale, accounting for more than 90% of total enrolment.
Currently, the company’s revenue is almost evenly divided between its online and offline channels. In the test-prep segment, it competes with Aakash Institute, Allen Career Institute and Unacademy.
PhysicsWallah expects growth to come from mass-market segments, including state boards, foundation courses and content in regional languages. Earlier ET had reported that PW plans to double down on its offline network and diversify into new geographies, particularly in the South.
The edtech company has widened its portfolio to 13 categories, adding new segments such as UPSC, GATE, CUET, foundation courses and government exam prep, reducing its dependence on JEE and NEET. JEE and NEET, which together accounted for 38% of enrolments in H1 FY25, dropped to 35% in H1 FY26.
“New exam categories are growing rapidly. In terms of JEE and NEET growth rates, we have gained strong market share in the Hindi heartland. We are also expanding quickly in Central India and Southern India,” Pandey said.
In its shareholder letter, the company said its core operating levers both online and offline include expanding into high-potential markets, and enhancing operational efficiency at scale.
The company listed on stock exchanges on November 18, after a Rs 3,480 crore initial public offering. It raised Rs 3,100 crore in primary capital through the IPO.