Physicswallah (PWL) Q3 25/26 earnings summary

Executive summary

• Achieved robust revenue growth in Q3 FY26, with consolidated revenue from operations at INR 10,824.19 million, up from INR 8,096.77 million in Q3 FY25.

• Pre-interest EBITDA for Q3 reached INR 218 crores (20.2% margin), and PAT was INR 102 crores (9% margin).

• Nine-month consolidated revenue was INR 29,807.42 million, up from INR 22,770.44 million year-over-year.

• IPO concluded in November 2025, raising INR 3,100 crores and listing on NSE and BSE, boosting treasury to INR 5,000 crores.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 5, 2026.

Financial highlights

• Q3 consolidated revenue: INR 10,824.19 million (+34% YoY); nine-month consolidated revenue: INR 29,807.42 million (+31% YoY).

• Q3 pre-interest EBITDA: INR 218 crores (20.2% margin); Q3 consolidated net profit: INR 1,022.72 million.

• Nine-month consolidated net profit: INR 449.74 million, down from INR 460.19 million year-over-year.

• One-time expenses of INR 23 crores in Q3 related to labor code changes and IPO.

• Basic EPS (standalone) for Q3 FY26 was INR 0.37, and for nine months was INR 0.35.

Outlook and guidance

• Full-year revenue guidance: 32%-35% growth expected.

• IPO proceeds are earmarked for capital expenditure, lease payments, marketing, technology, and inorganic growth, with significant unutilized funds temporarily invested in fixed deposits.

• Continued focus on expanding both online and offline segments, with strong growth anticipated in both.

• K-12 segment expected to become larger than test prep in the next 5-7 years.

• The company continues to monitor regulatory changes, especially the impact of new Labour Codes on employee benefit liabilities.