PhysicsWallah targets above 30% revenue growth, to use AI for costs

Edtech firm PhysicsWallah expects to grow revenue by over 30 per cent this fiscal and leverage artificial intelligence to reduce operational expenses, a senior company official said. The company recently reported a narrowing of consolidated loss to Rs 69.14 crore in the fourth quarter ended March 31, 2026, due to increase in enrolments and average revenue per person from a loss of Rs 289.27 crore in the same period a year ago.

“We will continue to grow upwards of 30 per cent in terms of our revenue. The current focus of the management is to generate revenue through AI because education is a direct impact area and all the repeat tasks AI performance has been significantly improved and cost is also significantly reduced,” PhysicsWallah Co-Founder Prateek Maheshwari said.

Revenue from operations of PhysicsWallah (PW) increased by about 51 per cent to Rs 918.8 crore during the quarter from Rs 609.6 crore in the March 2025 quarter. The loss of PW narrowed to Rs 24.17 crore in FY26 from Rs 243.26 crore in FY25. “We saw 20 per cent improvement in enrolment and 11 per cent improvement in average revenue per person, which led to a blended improvement in revenue of 35 per cent,” Maheshwari said.

He said that the company recorded a significant difference in terms of profit after tax (PAT). “The PAT for last year was more than Rs 200 crore negative and this year it is just around minus Rs 24 crore. So overall it’s quite satisfactory for us,” Maheshwari said.

The annual revenue from operations of PW increased by 35 per cent to Rs 3,899.54 crore in FY26 from Rs 2,886.64 crore a year ago.

The company posted profit before tax of Rs 10 crore during FY26.

He said that the company has not done much work in leveraging AI to reduce employee cost but it will be a focus area during the current financial year.

“Already we have used AI in terms of doubt-solving. 90 per cent of the doubts have been solved by AI and more than 2 million subjective answer sheets have been evaluated by AI with more than 90 per cent accuracy,” Maheshwari said.

PW’s total faculty members increased by 34 per cent to 6,837 on a year-over-year basis, taking its total employee count to 18,997 at the end of FY26.

“There is a slight increase in headcount because we have opened 70 more centers in our offline mode of delivery. We had to hire teachers, staff, classroom in-charge and center managers to run that business,” Maheshwari said.

During FY26, the company increased its total centres by 78 per cent with capex of around Rs 250 crore to 353 from 198 in FY25.

“Our offline revenue grew by 31 per cent this year and online revenue grew by 39 per cent. The online will have a faster growth rate in future also and offline will have a slightly slower growth rate,” Maheshwari said.

The company closed FY26 with a student base of 14.2 crore.