Physicswallah Limited (PW) stands at the forefront of India’s rapidly expanding education sector, built on a foundation of providing quality education focused on accessibility and affordability. Originally incorporated in June 2020 as a private limited company in Prayagraj, Uttar Pradesh, it has rapidly grown into a comprehensive educational technology group.

Products and Delivery Channels

PW has evolved beyond its initial digital presence to adopt an omni-channel approach, blending digital platforms with a significant physical footprint across India and the Middle East.

Core Offerings (Products and Services)

PW’s primary business revolves around offering test preparation courses for competitive examinations, alongside specialized upskilling courses. Their flagship segment focuses on critical Indian entrance exams:

• Flagship Test Preparation: Courses for engineering (JEE), medical entrance examinations (NEET), and Foundation courses are offered.
• Other Competitive Exams: Offerings also cover preparation for Civil Services, State and Central Government exams, MBA, GATE, and CA, among others.

Channels of Delivery

PW uses both Online and Offline/Hybrid channels:

1. Online Channel: This digital delivery method leverages the company's website, dedicated apps, and expansive social media presence. Revenue from the Online Channel was ₹1,404.05 crore in Fiscal 2025.
2. Offline and Hybrid Channels: This provides a physical learning environment. As of June 30, 2025, the company operated 303 Total Offline Centers across 152 cities in India and the Middle East.

Revenue Structure and Financial Momentum

Physicswallah Limited earns revenue from operations through the Sale of Services, Sale of Products, and Other Operating Income. Consolidated revenue from operations grew from ₹744.318 crore in Fiscal 2023 to ₹2,886.643 crore in Fiscal 2025.

• Sale of Services (coaching/teaching, hostel, transportation, content access) is the largest revenue source.
• In the three months ended June 30, 2025 (Q1 Fiscal 2026), the total consolidated Revenue from operations was ₹847.088 crore.

The company reported a restated consolidated loss of ₹243.258 crore for Fiscal 2025. This was a significant reduction compared to the restated consolidated loss of ₹1,131.130 crore in Fiscal 2024, a year marked by substantial expense recognized due to the fair valuation of Compulsorily Convertible Preference Shares (CCPS).

The Objects of the Fresh Issue

Physicswallah is currently undertaking an Initial Public Offering (IPO) that aggregates up to ₹3,480.00 crore. This includes a Fresh Issue of up to ₹3,100.00 crore, from which the company will receive the Net Proceeds.

The estimated Net Proceeds from the Fresh Issue are strategically allocated to several objects, as approved by the Board on October 28, 2025:

1. Offline Expansion and Capital Expenditure (CapEx):
   • ₹460.551 crore is earmarked for capital expenditure for fit-outs of new offline and hybrid centers operated by PW (New PW Vidyapeeth Centers, New PW Pathshala Centers, and New PW Other Centers).
2. Supporting Existing Infrastructure and Subsidiary Investment:
   • ₹548.308 crore is allocated for expenditure towards lease payments of existing identified offline and hybrid centers operated by the company.
   • ₹47.168 crore will be invested in the subsidiary, Xylem Learning Private Limited. This includes ₹31.648 crore (₹316.48 million) for capital expenditure related to new offline centers of Xylem, and ₹15.520 crore (₹155.20 million) for lease payments related to Xylem’s existing identified centers and hostels.
   • ₹28.002 crore is designated for investment in the subsidiary, Utkarsh Classes & Edutech Private Limited, for lease payments of its existing identified offline centers.
3. Technology and Marketing Investment:
   • ₹200.106 crore is proposed for expenditure towards server and cloud related infrastructure costs.
   • ₹710.00 crore is set aside for marketing initiatives.
4. Strategic Acquisition:
   • ₹26.50 crore is proposed for the acquisition of additional shareholding in Utkarsh Classes & Edutech Private Limited (Utkarsh Tranche III minimum cash consideration).
5. General Corporate Flexibility: The remaining funds are reserved for funding inorganic growth through unidentified acquisitions and General Corporate Purposes (GCP).

Major Recent Highlights

• Public Listing Transition: The company officially converted from a private limited company to Physicswallah Limited, a public limited company, with effect from January 8, 2025.
• Expansion through Consolidation: PW has expanded its capabilities through key acquisitions, notably including Xylem Learning Private Limited (acquired in Fiscal 2024 to strengthen presence in South India/Kerala) and Utkarsh Classes & Edutech Private Limited.
• Bonus Issue: A significant corporate action involved the approval of a bonus issue in the ratio of 1:35 (35 Equity Shares for every one Equity Share held) on March 5, 2025, resulting in the allotment of 212.32 crore fully paid-up equity shares by capitalizing the securities premium.