PhysicsWallah Profit More Than Doubles to Rs 144 Cr in Q2 FY27

PhysicsWallah's net profit more than doubled to Rs 144 crore in Q2 FY27, up 2.1 times from Rs 70 crore a year earlier. The Noida-based edtech company grew revenue from operations 18.2% year-on-year to Rs 1,242 crore, from Rs 1,051 crore in Q2 FY26, according to its consolidated financial statement sourced from NSE.

The numbers mark a sharp profitability acceleration for a company that spent heavily on expansion through offline centers and acquisitions over recent quarters.

What drove the revenue mix?

The online segment stayed the largest contributor. It accounted for 55.84% of operating revenue at Rs 693.5 crore, up 26.3% year-on-year. That growth rate outpaced every other line in the business.

The offline segment contributed 43.56% of operating revenue, rising 9.1% to Rs 541 crore. Other operating revenue came in at Rs 8 crore. Beyond operations, PhysicsWallah earned Rs 93 crore from other sources, taking total income to Rs 1,335 crore for the quarter.

The gap between online and offline growth matters. Online revenue expanded nearly three times faster than offline, even as the company keeps investing in its physical center network.

How did costs move?

Employee benefits stayed the largest cost component at Rs 522 crore, up 10.4% from Rs 473 crore. Cost of materials consumed rose faster, climbing 22.6% to Rs 195 crore from Rs 159 crore.

Depreciation expenses increased 7.6% to Rs 113 crore. Finance costs rose 4% to Rs 26 crore. Other expenses grew 4.6% to Rs 249 crore from Rs 238 crore.

Overall expenses increased 10.5% to Rs 1,105 crore in Q2 FY27, from Rs 1,000 crore in Q2 FY26. Costs grew at roughly half the pace of revenue, which explains most of the profit jump.

What does the half-year picture show?

On a half-yearly basis, revenue from operations increased 20.8% to Rs 2,293 crore in H1 FY27, from Rs 1,898 crore in H1 FY26.

The half-year profit line shows the swing more starkly. PhysicsWallah reported a net profit of Rs 55.35 crore in H1 FY27, against a net loss of Rs 57.30 crore in H1 FY26 — a turnaround of more than Rs 112 crore at the half-year level.

How did the market react?

At the end of the day's trading session, the company's share price closed at Rs 127.41, giving PhysicsWallah a market capitalisation of Rs 37,376 crore.

The valuation implies investors are paying roughly 30 times annualized H1 revenue — a premium that will depend on the company sustaining both the 20%-plus top-line growth and the margin discipline that produced this quarter's profit surge.