IPO-Bound PhysicsWallah's Q1 Loss Increases 78% To INR 125.5 Cr

IPO-bound edtech major PhysicsWallah (PW) reported a net loss of INR 125.5 Cr in the first quarter of fiscal year ending March 2026 (Q1 FY26), widening 78% from INR 70.6 Cr in the same quarter last year.

Operating revenue rose 33% to INR 847 Cr from INR 635.2 Cr in Q1 FY25. Including other income of INR 58.3 Cr, total income stood at INR 905.4 Cr, compared to INR 660.3 Cr a year earlier.

The company disclosed its financial performance for the quarter in its red herring prospectus (RHP), which it filed today. The edtech major’s INR 3,480 Cr IPO would include a fresh issue of INR 3,100 Cr and an OFS of INR 380 Cr.

Important to mention that cofounders Alakh Pandey and Prateek Boob (Maheshwari) cut their earlier OFS size from INR 720 Cr and will now sell shares worth INR 190 Cr each.

During the quarter ended June, PW extended additional long-term unsecured loans to Gurukulam Education Trust, increasing the interest rate from 9% to 10.6% per annum effective April 1, 2025.

The trust, which operates Gurukulam Schools, has partnered with the group’s subsidiary, Penpencil Edu Services, for financial, educational, and management support. Under this arrangement, the trust pays royalty and service charges linked to its revenue.

As of June 30, 2025, the total outstanding loan stood at INR 28.7 Cr, up from INR 22.2 Cr in March 2025.

The group views this as a strategic investment to expand its K–12 school network under the ‘PW’ brand and remains confident of full recovery. Additionally, loans have been provided to three directors of its subsidiary Xylem Learning, repayable on demand and classified as current.

In FY25, the company managed to narrow its net loss by 78% to INR 243.3 Cr while revenue from operations jumped 49% YoY to INR 2,886.6 Cr, driven largely by its India business, which contributed INR 2,851.2 Cr.

Breaking Down The Major Expenses

Total expenses zoomed 41% to INR 1,075.5 Cr from INR 764.2 Cr last year. Here’s a lowdown on PW’s major expenses for the quarter:

Employee Benefit Expenses: The company spent INR 459.8 Cr on its employees in the quarter, up 37% from INR 335.4 Cr in the same quarter previous year

Advertisement And Publicity Expenses: PW’s promotional expenditure surged 71% to INR 117.8 Cr from INR 68.8 Cr in the previous fiscal.

Cost Of Raw Material: The expenses under this head increased 9.1% to INR 28.7 Cr from INR 26.3 Cr in the year ago period.

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