PhysicsWallah, also known as PW, showcases an impressive growth trajectory with its Q3 FY26 report revealing a 34% year-on-year revenue increase to Rs 1,082 crore, alongside a PAT of Rs 102 crore, despite incurring one-time expenses. PW has achieved profitability over the nine-month period, exceeding its total FY25 revenue within the first three quarters of the current fiscal year. In a discussion with Startup Superb, PW’s CFO, Amit Sachdeva, shares insights on the subdued market response to these results, opportunities for further expansion, and the company’s focus on state boards and K-12 school partnerships. Here are edited excerpts from that conversation.
Highlights
Startup Superb: Q3 Results and Market Reaction
Startup Superb inquires about the notable interest generated by PW’s Q3 results. They ask for Amit’s perspective on the lacklustre market response despite strong financial performance.
Amit explains that this quarter has been the strongest for PW, offering valuable context for both Q3 and full-year figures. Revenue growth for Q3 FY26 remained robust, with a 34% increase year-on-year, reaching Rs 1,082 crore. Despite incurring a one-time expense of Rs 30 crore, the company recorded a positive PAT of Rs 102 crore. The first nine months of FY26 were equally impressive, with revenue surpassing Rs 3,000 crore, indicating a PAT of Rs 45 crore, even after facing a one-time expense of Rs 37 crore. He attributes these results to the trust students place in PW, fuelled by a 21% year-on-year rise in paid student enrollments to 4.4 million.
Startup Superb: Growth Potential in Test Prep
Startup Superb raises questions about whether the impressive numbers signal too much success and if there remains room for growth.
Amit confidently states that their aim is to teach 5 million paid students in the current academic year. He highlights that the overall test prep market in India has a current penetration rate of under 2%, indicating significant potential for growth. For this quarter, they introduced three new categories—NEET PG, IIT JAM, and CLAT—that each generated over Rs 10 crore in annual collections. The company also announced new initiatives like PW Talks, an AI-driven English-speaking app aimed at enhancing learners’ fluency and confidence through daily interactions and instant feedback, much like having a personal English tutor. Furthermore, they introduced PW OTT, a distraction-free YouTube alternative designed specifically for students, providing a focused learning environment.
Startup Superb: Addressing Online Learning Concerns
Concerns regarding online learning are raised, particularly about student engagement and course completion rates.
Amit responds by sharing that PW sees an average daily user count exceeding 3.4 million, with over 134 million total followers across social media platforms—one of the highest student engagement records. He underscores their strong engagement metrics, with an average interaction time of 106 minutes. To address potential student fatigue, PW positions itself as a tech-enabled educational platform committed to investing heavily in technology enhancements, seamless app usability, and continuous innovation to make learning engaging. The combination of academically accomplished educators and an energetic teaching approach further keeps students engaged, as evidenced by impressive engagement figures and high net promoter scores (NPS).
Startup Superb: Expansion into State Boards
Startup Superb questions how PW plans to navigate linguistic and cultural nuances as it enters the state boards arena.
Amit shares that their state boards initiative has gained significant traction, with over 200,000 enrollments in its inaugural year. Paid courses have been launched in states like Rajasthan, Madhya Pradesh, Jharkhand, Bihar, Jammu & Kashmir, and Uttar Pradesh. He notes that the Total Addressable Market (TAM) for these six states is approximately 25 million students compared to the all-India state board TAM of 50 million. He emphasises the size of the markets they are unlocking, referencing the UP state board where a PW student topped Class 10 this year with around 2.5 million candidates appearing for exams, illustrating the scale of opportunity available in state boards. Regarding local coaching influences, Amit is confident that they face minimal challenges since the existing players are largely unorganised and operate at a smaller scale.
Startup Superb: K-12 Segment and Long-Term Vision
Startup Superb raises the issue of PW’s recent transition towards K-12 education, questioning if it mirrors traditional vertical integration traps.
Amit clarifies that PW’s strategic plans include selective investments in K-12 education through their wholly owned subsidiary, PenPencil. They have set aside Rs 400 crore for acquisitions over the next 12-18 months. He asserts that test prep and K-12 education are complementary, as partnerships enhance students’ overall learning experience. They highlight a high-quality K-12 institution partnership with Tender Heart as evidence of this strategy. Amit reiterates that PW’s focus on test prep will remain strong, emphasising that the K-12 TAM is larger than the test prep segment—there are four K-12 students for every one in test prep. The integration of K-12 partnerships is designed to facilitate a smooth journey towards test preparation, supporting students throughout their academic careers. Their ongoing commitment will be to expand online offerings and cautiously grow offline centres.
