PhysicsWallah's financial loss diminishes by approximately 80% to 243 crores in the fiscal year 25; the company shells out 1,426 crores in employee wages.
In a significant move for the Indian edtech sector, PhysicsWallah has filed for an Initial Public Offering (IPO) worth Rs 3,820 crore. The company's updated prospectus outlines a fresh issue of Rs 3,100 crore.
In the fiscal year 2025 (FY25), PhysicsWallah reported a substantial increase in operating revenue, reaching Rs 2,886.6 crore, marking a 49% growth from the previous year. Including other income, the total income rose to Rs 3,039.1 crore.
The company's coaching services contributed significantly to this revenue, generating more than Rs 2,498 crore in FY25. Online courses accounted for Rs 1,404 crore, up 45%, while offline centers brought in Rs 1,352 crore, up 46%. Ancillary services such as hostels and transport added Rs 116 crore, while the sale of books and student merchandise contributed Rs 259 crore.
Employee benefits consumed Rs 1,401 crore in FY25, reflecting a workforce of nearly 15,800. Direct costs such as faculty contracts, server fees, and franchise payouts amounted to Rs 513 crore. Marketing outlays rose 41% to Rs 276 crore.
PhysicsWallah managed to turn EBITDA positive, posting Rs 193 crore. Depreciation and amortization climbed to Rs 366 crore. Despite these costs, the company's net losses shrank significantly, falling from Rs 1,131.0 crore in the previous year to Rs 243.3 crore in FY25.
The company's overseas revenue remains marginal at Rs 35.5 crore, though it grew 61% from the prior year. As of March 2025, PhysicsWallah operated 198 centers across 109 cities, up from 126 a year earlier.
Notably, about Rs 1,000 crore of the proceeds are earmarked for offline expansion. Another Rs 710 crore is planned for marketing and Rs 200 crore for technology.
In the IPO, institutional investors such as WestBridge Capital, Hornbill Capital Partner, GSV Ventures, Lightspeed Opportunity Fund, and Setu AIF Trust participated in the sale. Kotak, JP Morgan, Goldman Sachs, and Axis Capital acted as lead managers, but the available data does not indicate that these lead managers or some investors participated in stock sales. Instead, the offer-for-sale was done by the founders Alakh Pandey and Prateek Boob, with promoters selling shares.
Interestingly, the founders plan to sell Rs 720 crore worth of shares as part of the IPO. The average revenue per offline user stood at Rs 40,405, indicating a premium for classroom instruction.
In addition, PhysicsWallah disclosed political donations of Rs 37 lakh in FY25, including nearly Rs 29 lakh to the Communist Party of India.
The company's EBITDA margin improved significantly, rising to 6.7% from -42.7%. This positive trend bodes well for PhysicsWallah's future growth and profitability.
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