Decline in profits for PhysicsWallah: Revenue plummets approximately 80%, landing at Rs 243 crore in the fiscal year 25; substantial salary expenses of Rs 1,426 crore incurred
In the dynamic world of education technology, PhysicsWallah has been making waves. Founded in 2016, the company expanded into 13 education categories by March 2025, demonstrating its commitment to comprehensive learning solutions.
The company's fiscal year ended March 2025 (FY25) saw significant growth. Operating revenue rose to Rs 2,886.6 crore, marking a 49% increase from the previous year. This growth was reflected in various aspects of the business.
Coaching services, for instance, contributed more than Rs 2,498 crore to PhysicsWallah's revenue in FY25. Online courses generated Rs 1,404 crore, up 45%, while offline centers brought in Rs 1,352 crore, up 46%.
Another notable achievement was the positive EBITDA of Rs 193 crore, a stark contrast to the loss of Rs 829 crore the previous year. This improvement was accompanied by a shrinking of net losses, which decreased from Rs 1,131.0 crore in FY25 to Rs 243.3 crore.
PhysicsWallah's offline expansion plans were also revealed. Rs 1,000 crore of the IPO proceeds are allocated for this purpose, with half for new centers and the rest for lease payments for existing facilities.
The company's paid user base reached 4.46 million, while total student enrollments rose 21% year-on-year to 48 lakh. The average revenue per offline user stood at Rs 40,405, indicating a premium students are willing to pay for classroom instruction.
Ancillary services such as hostels and transport added another Rs 116 crore, while the sale of books and student merchandise contributed Rs 259 crore.
Marketing outlays increased by 41% to Rs 276 crore, and another Rs 710 crore is planned for marketing. Rs 200 crore is earmarked for technology.
The IPO, for which PhysicsWallah filed an updated draft red herring prospectus (DRHP) for a Rs 3,820 crore Initial Public Offering (IPO), involves promoters selling shares. Institutional investors such as WestBridge Capital, Hornbill Capital Partner, GSV Ventures, Lightspeed Opportunity Fund, and Setu AIF Trust are backing the IPO, but there is no public information indicating that any specific institutions have declined or not participated in the IPO share sales as per the available data.
Depreciation and amortization rose to Rs 366 crore, primarily due to leasehold improvements, acquisitions, and technology spend. Employee benefits alone consumed Rs 1,401 crore in FY25, reflecting a workforce of nearly 15,800.
Overseas revenue was Rs 35.5 crore, a 61% increase from the previous year, and political donations amounted to Rs 37 lakh, including Rs 29 lakh to the Communist Party of India.
As of March 2025, PhysicsWallah operated 198 centers across 109 cities, up from 126 a year earlier. The EBITDA margin improved to 6.7% from -42.7%.
In conclusion, PhysicsWallah's FY25 performance underscores its growth and potential in the edtech sector. With its IPO on the horizon, the company is poised to continue its expansion and innovation in the realm of education.
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