PhysicsWallah (PW), the edtech unicorn founded by Alakh Pandey, is betting on its affordability-led model, regional language expansion, and AI integration to power its next phase of growth as it prepares for life as a listed entity.
Speaking to Moneycontrol, Co-founder and Whole-Time Director Prateek Maheshwari said the company plans to stick to its 'student-first, affordable learning' approach, with only a minor 6–7% price adjustment in course fees post-listing, in line with inflation. “Pricing is not a strategy for us, it’s a choice. Our mission is to make quality education accessible to every student in India,” he said.
PhysicsWallah currently offers live learning courses priced at around Rs 4,000 per year, a fraction of what competitors charge. This model, Maheshwari said, has helped the platform attract 4.5 million paid learners, with nearly 93% learning online and the rest through its expanding offline network.
Expansion & offline growth
The company operates over 300 offline and hybrid centres across 150+ cities and plans to open 200 more centres over the next three years. “We are sufficiently capitalised to fund this expansion internally,” Maheshwari noted, adding that offline centres typically break even in the second year and start generating returns by the third year of operation.
PhysicsWallah’s offline model remains heavily tech-enabled, with all classrooms recorded in high resolution and integrated with its app for continuous student engagement. Maheshwari also emphasised that 80% of offline admissions come through online leads, creating strong synergy between the two formats.
Revenue, profitability & margins
PhysicsWallah reported FY25 revenue of Rs 2,887 crore, a sharp jump from Rs 44 crore in FY23 and Rs 1,941 crore in FY24, reflecting a CAGR of over 90%. The company also turned EBITDA-positive in FY25 compared to a loss of Rs 829 crore in FY24 - translating to a 6.7% EBITDA margin.
Maheshwari said EBITDA improvements are driven by operational leverage, with people costs declining from 60% of revenue in FY24 to 49% in FY25. “We’ve also generated over Rs 1,000 crore of free cash from operations, and Rs 500 crore in FY25 alone,” he added.
While the company posted a net loss of Rs 127 crore in Q1 FY26, Maheshwari said PAT profitability is 'very close'. “EBITDA profitability will continue and PAT profitability will come very soon,” he stated.
Valuations & investor confidence
On the question of premium valuations - the IPO values PhysicsWallah at around 10x price-to-sales - Maheshwari said the company is focused on long-term value creation. “We believe we’ve left enough on the table for investors. Since none of our private equity partners are selling, it shows their confidence in our story,” he noted.
He added that anchor investor participation was strong and the valuation should be viewed in the context of forward growth. “For a hyper-growth company like ours, the right way to value us is on future numbers, not past performance,” he said.
The next frontier for PhysicsWallah
The edtech firm plans to expand further into Indic language content (11 languages), state board curricula, and AI-powered learning solutions such as 'AI Guru' and 'AI Grader.' Maheshwari called these areas 'the next big growth frontiers,' alongside early-grade (Class 6–8) and skills-based learning.
He added that AI will be a key margin lever — automating tasks like doubt resolution, test creation, and content personalisation, helping improve delivery efficiency over time.
On inorganic growth, Maheshwari said the company will continue evaluating strategic acquisitions like Utkarsh Classes and Xylem Learning, which have expanded PhysicsWallah’s reach into government exams and southern India. "We prefer to build rather than buy, but never say never," he said.
Despite the challenges faced by the wider edtech sector, Maheshwari remains confident that PhysicsWallah can reset investor sentiment. "Once we perform and stay profitable, perceptions about the sector will change," he said.
PhysicsWallah currently commands a 7% share of India’s offline coaching market, but only about 1.5% of the overall learning market - a gap Maheshwari sees as a massive opportunity. “India has 30 crore learners and we’ve barely scratched the surface,” he said.
"Revenue, EBITDA, and PAT are by-products - our real goal is to create value for learners. Investor value will follow," Maheshwari concluded.
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