PhysicsWallah Seeks Over 30% Revenue Growth This Fiscal, Taps AI for Cost Optimization

PhysicsWallah Expects 30% Revenue Growth, Leverages AI to Reduce Expenses

Edtech firm PhysicsWallah is poised to grow its revenue by more than 30% this fiscal year, while utilizing artificial intelligence to minimize operational expenses. According to a senior company official, the company's focus is on generating revenue through AI due to its direct impact on education.

In its recent financial report, PhysicsWallah revealed a narrowing of consolidated loss to Rs 69.14 crore in the fourth quarter ended March 31, 2026. This improvement is attributed to an increase in enrolments and average revenue per person, which rose from a loss of Rs 289.27 crore in the same period a year ago to a loss of Rs 69.14 crore.

The company's revenue from operations increased by approximately 51% to Rs 918.8 crore during the quarter from Rs 609.6 crore in March 2025 quarter. PhysicsWallah's loss narrowed to Rs 24.17 crore in FY26 from Rs 243.26 crore in FY25.

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The company recorded a significant improvement in terms of profit after tax (PAT). In FY26, PAT stood at around minus Rs 24 crore, compared to a loss of more than Rs 200 crore in the previous year.

PhysicsWallah has not yet leveraged AI to reduce employee costs, but this will be a focus area during the current financial year. The company has already utilized AI in doubt-solving, with 90% of doubts being resolved through AI. Additionally, more than 2 million subjective answer sheets have been evaluated by AI with an accuracy of over 90%.

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The total faculty members at PhysicsWallah increased by 34% to 6,837 on a year-over-year basis, taking its total employee count to 18,997 at the end of FY26. This increase is attributed to the opening of 70 more centers in the offline mode of delivery, requiring the hiring of teachers, staff, and other personnel.

During FY26, PhysicsWallah increased its total centers by 78% with capex of around Rs 250 crore to 353 from 198 in FY25. The company's offline revenue grew by 31% this year, while online revenue grew by 39%. PhysicsWallah expects online revenue to continue growing faster than offline revenue in the future.

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