PhysicsWallah’s Losses Plunge by 80%! Here’s How It’s Winning Big in India’s Edtech Boom

PhysicsWallah, one of India’s fastest-growing edtech startups, is on a roll. After years of losses, the company has drastically cut its financial setbacks, improved its operations, and is now gearing up for a major IPO. With online and offline learning booming alike, PhysicsWallah is proving that quality education combined with smart expansion can win both students and investors.

Let’s break down what’s going on, how the company is making money, and why its upcoming IPO could be one of the biggest in the edtech sector.

PhysicsWallah Cuts Losses by Nearly 80%

In the latest financial year (FY25), PhysicsWallah reduced its net loss from Rs 1,131 crore to just Rs 243 crore – an impressive drop of nearly 80%. This turnaround didn’t come from magic but through smarter operations, stronger revenue streams, and better cost management.

A key reason for this improvement is that the company avoided a one-time loss from revaluing preference shares that had hit it hard in the previous year.

Revenue Soars by Almost 50%

PhysicsWallah’s total income jumped to Rs 3,039 crore in FY25, up from Rs 1,940 crore in FY24 – a 49% increase. Its main income came from coaching services, with more than Rs 2,498 crore contributed by both online and offline classes.

Other sources like hostels, transport, books, and student merchandise added around Rs 375 crore combined. Interestingly, advertising and other minor income streams made up just Rs 13 crore, showing the company’s reliance on education rather than promotional gimmicks.

Online vs Offline: Growing Hand in Hand

One of the most striking features of PhysicsWallah’s success is that both online and offline education are growing at nearly the same pace.

Online courses brought in Rs 1,404 crore, a 45% increase from the previous year.
Offline centers generated Rs 1,352 crore, growing by 46%.

This balance highlights that students are eager for both flexible digital learning and in-person classroom experiences. With 198 centers in 109 cities as of March 2025 – up from 126 centers the previous year – the company is expanding aggressively to meet demand.

The average revenue per offline student stood at Rs 40,405, proving that students are willing to pay a premium for face-to-face instruction and better facilities.

The Costly Road to Success

While growth is exciting, it comes at a price. PhysicsWallah’s total expenses in FY25 were Rs 3,265 crore – about 113% of its revenue.

Employee Costs

The biggest chunk went to employee benefits, totaling Rs 1,401 crore. The company employs nearly 15,800 staff members across teaching, operations, and support functions.

Direct Costs

Payments for faculty contracts, server maintenance, and franchise payouts came to Rs 513 crore.

Marketing

To expand its brand, PhysicsWallah spent Rs 276 crore on marketing, which is around 10% of its operating revenue.

Technology and Depreciation

Investments in leasehold improvements, acquisitions, and technology led to Rs 366 crore in depreciation and amortization expenses.

Despite the high costs, PhysicsWallah managed to turn a corner financially.

Turning EBITDA Positive

Perhaps the biggest win was turning EBITDA positive – a key profitability measure. The company posted an EBITDA of Rs 193 crore compared to a loss of Rs 829 crore in the previous year. The EBITDA margin, which shows operating efficiency, improved from –42.7% to 6.7%.

This achievement signals that PhysicsWallah’s business model is sustainable and capable of generating profits.

Upcoming IPO: What’s in the Pipeline?

PhysicsWallah plans to raise Rs 3,820 crore through its initial public offering (IPO). The offer includes:

Rs 3,100 crore as fresh issue – new shares to raise capital for growth.
Rs 720 crore as offer-for-sale – existing shareholders like founders Alakh Pandey and Prateek Boob selling their shares.

Notably, institutional investors like WestBridge Capital, Hornbill Capital, GSV Ventures, and Lightspeed are backing the company but not selling their shares, showing strong confidence in PhysicsWallah’s long-term prospects.

Why Investors Are Watching Closely

PhysicsWallah’s story is more than just numbers. It reflects broader trends:

Hybrid Education Model – A rare success where both online and offline learning formats are thriving together.
Premium Learning Experience – Students are willing to pay for quality instruction, especially in competitive exam coaching.
Scalable Expansion – With hundreds of centers planned, the company is set for growth across India’s education landscape.
Profitability in Sight – Improved EBITDA and tighter expense management make the business more attractive to investors.

For investors and students alike, PhysicsWallah represents a new wave in education—one that combines technology with tradition, convenience with community, and scale with profitability.

PhysicsWallah’s journey from mounting losses to narrowing them dramatically is a case study in resilience, strategy, and market understanding. By balancing online convenience with offline expertise, managing costs, and expanding thoughtfully, it’s setting new benchmarks in India’s booming edtech industry.

With its IPO on the horizon, all eyes are on this unicorn as it prepares to transform education for millions and offer an exciting investment opportunity.

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