Physicswallah (PWL) Q2 25/26 earnings summary

Executive summary

• Achieved strong revenue and enrollment growth in Q2 FY26, with consolidated revenue from operations at INR 10,512.36 million, up from INR 8,321.71 million in Q2 FY25, and a 70% rise in PAT to INR 697.11 million, reversing last year's loss.

• Adjusted EBITDA grew 38% year-over-year to INR 269 crores, with margin expansion from 23% to 26%.

• Online and offline enrollments both showed robust growth, with online ARPU up 8% year-over-year.

• Business model focuses on affordable, large-scale live classes, reaching deep into tier 3/4 cities and rural India.

• IPO completed in November 2025, raising INR 31,000 million through a fresh issue and listing on NSE and BSE.

Financial highlights

• Total income for Q2 FY26 was INR 10,984.08 million, up from INR 8,627.85 million in Q2 FY25.

• Adjusted EBITDA rose 38% to INR 269 crores, with margin improvement to 26%.

• PAT for Q2 was INR 697.11 million, compared to a net loss of INR 307.08 million in Q2 FY25.

• Pre-interest EBITDA reached INR 160 crores, up 37% year-over-year.

• Advertisement and publicity expenses for the six months ended September 30, 2025, were INR 2,021.54 million.

Outlook and guidance

• Q3 is expected to be the strongest quarter, with highest topline and EBITDA margins, and will be PAT profitable.

• H2 revenue is projected to exceed H1, with continued strong enrollment and ARPU growth.

• Management expects both revenue and profitability to improve sustainably over the next 3-5 years.

• Management is evaluating the impact of new Indian labour codes notified in November 2025.

• Offline revenue growth is expected to stabilize at 20-25% annually, while online will outpace offline.