Decline in PhysicsWallah's losses reaches nearly 80%, amounting to Rs 243 crore in the fiscal year 25; the company shells out a massive Rs 1,426 crore on salaries.
In the dynamic world of Indian edtech, PhysicsWallah has made a significant stride by filing for an Initial Public Offering (IPO) worth Rs 3,820 crore. The company, which has grown into a platform spanning 13 education categories, reported impressive growth and profitability in its latest financial year.
As of March 2025, PhysicsWallah operated 198 centres across 109 cities, a marked increase from the 126 centres the previous year. This expansion has been accompanied by a surge in user base, with paid users reaching 4.46 million and total student enrollments rising 21% year-on-year to 48 lakh.
The coaching services contributed significantly to PhysicsWallah's revenue, generating more than Rs 2,498 crore in FY25. Online courses accounted for Rs 1,404 crore, while offline centres brought in Rs 1,352 crore. Ancillary services such as hostels and transport added another Rs 116 crore, and the sale of books and student merchandise contributed Rs 259 crore.
The financials also reveal that PhysicsWallah managed to turn EBITDA positive, posting Rs 193 crore. However, direct costs such as faculty contracts, server fees, and franchise payouts amounted to Rs 513 crore. Employee benefits alone consumed Rs 1,401 crore, reflecting a workforce of nearly 15,800. Marketing outlays rose 41% to Rs 276 crore, and another Rs 710 crore is planned for marketing and Rs 200 crore for technology.
Despite these expenses, the company's net losses in FY25 shrank to Rs 243.3 crore, a significant decrease from Rs 1,131.0 crore the previous year. This improvement is reflected in PhysicsWallah's EBITDA margin, which improved to 6.7% from -42.7%.
The company's updated prospectus outlines a Rs 3,100 crore fresh issue. Founders Alakh Pandey and Prateek Boob plan to offer Rs 720 crore through an offer-for-sale. Notably, the institutions involved in financing the planned IPO but not selling shares in the IPO include marquee investors such as GSV Ventures, 9Unicorns, and Info Edge.
PhysicsWallah's overseas revenue remains marginal at Rs 35.5 crore, though it grew 61% from the prior year. The company disclosed political donations of Rs 37 lakh in FY25, including nearly Rs 29 lakh to the Communist Party of India.
Including other income, total income for FY25 was Rs 3,039.1 crore, a 49% increase from the previous year. Depreciation and amortization climbed to Rs 366 crore. The average revenue per offline user stood at Rs 40,405 in FY25.
As PhysicsWallah moves towards its IPO, it continues to demonstrate its commitment to quality education and growth, positioning itself as a key player in the Indian edtech landscape.
