PhysicsWallah’s profit surges 70% in Q2 FY26, grants ESOPs worth Rs 500 Cr

Recently listed edtech unicorn PhysicsWallah delivered strong performance in Q2 FY26, posting 26% year-on-year revenue growth. The company’s profit also surged 70% to Rs 69.7 crore during the quarter.

PhysicsWallah’s operating revenue grew nearly 26% to Rs 1,051.26 crore in Q2 FY26 from Rs 832.17 crore in Q2 FY25, according to its consolidated financial statement sourced from NSE.

While the filing does not disclose a detailed revenue breakup, the company primarily earns from its online and offline courses for JEE, NEET, other engineering exams, and state boards, along with the sale of study materials.

It also made Rs 47.14 crore via interest and gains on financial assets which took the overall revenue to Rs 1,098.4 crore in Q2 FY26.

On the expense side, employee benefits remained the largest cost centre, accounting for 47.3% of total expenses at Rs 473 crore in Q2 FY26, a 38% rise from the same quarter last year. Depreciation and amortisation expenses stood at Rs 104.7 crore, while advertising costs increased nearly 40% to Rs 84.3 crore during the quarter.

Total expenses for the Alakh Pandey-led firm rose 25% year-on-year to Rs 999.55 crore in Q2 FY26 from Rs 800.43 crore in Q2 FY25.

Coming to the bottom line, the company’s expanded operating scale pushed its profit up by 70% to Rs 69.7 crore in Q2 FY26.

At the end of today’s trading session, the Noida-based company’s share price closed at Rs 135.94, giving it total market capitalization of Rs 38,875 crore ($4.4 billion)

Last month, PhysicsWallah made a stronger-than-expected public market debut, listing at Rs 145 per share on the NSE, a 33% premium over its issue price. The Rs 3,480 crore IPO comprised a Rs 3,100 crore fresh issue and an offer for sale of Rs 380 crore.

In a separate exchange filing, PhysicsWallah announced a fresh grant of employee stock options under its ESOP 2025 plan, covering 3.67 crore equity shares. Based on the current share price of Rs 135.94, the newly issued ESOPs are valued at around Rs 500 crore.