PhysicsWallah's financial losses significantly decrease, reaching approximately 80% to 243 crore rupees in the fiscal year 25; the company dispenses 1,426 crore rupees for employee salaries.
PhysicsWallah, an Indian edtech company that started as a YouTube channel in 2016, has filed for a Rs 3,820 crore Initial Public Offering (IPO). The company has seen significant growth in the past year, as evidenced by its financial reports for FY25.
The IPO proceeds will be primarily used for offline expansion. Rs 1,000 crore is earmarked for this purpose, with half dedicated to the establishment of new centers and the rest for lease payments for existing facilities.
In terms of financial performance, PhysicsWallah posted a positive EBITDA of Rs 193 crore, a stark contrast to the loss of Rs 829 crore the previous year. The net losses shrank dramatically from Rs 1,131.0 crore to Rs 243.3 crore in FY25. This improvement in financial health is reflected in the EBITDA margin, which improved to 6.7% from a negative 42.7%.
PhysicsWallah's coaching services contributed a substantial portion of its revenue in FY25, amounting to over Rs 2,498 crore. Online courses generated Rs 1,404 crore, up 45%, while offline centers brought in Rs 1,352 crore, up 46%. Ancillary services such as hostels and transport added another Rs 116 crore, while the sale of books and student merchandise contributed Rs 259 crore.
Direct costs, including faculty contracts, server fees, and franchise payouts, amounted to Rs 513 crore. Marketing outlays rose 41% to Rs 276 crore, while employee benefits consumed a significant portion of the expenses, totaling Rs 1,401 crore, reflecting a workforce of nearly 15,800. Depreciation and amortization climbed to Rs 366 crore.
The overseas revenue remains marginal at Rs 35.5 crore, though it grew 61% from the prior year. By March 2025, PhysicsWallah's paid user base reached 4.46 million, and total student enrollments grew 21% year-on-year to 48 lakh.
It's worth noting that the institutional investors in the planned IPO include GSV Ventures, WestBridge Capital, and A91 Partners. These investors are not selling any shares in the IPO.
In addition, PhysicsWallah disclosed political donations of Rs 37 lakh in FY25, including nearly Rs 29 lakh to the Communist Party of India.
Other than the IPO proceeds, PhysicsWallah has planned additional funds for marketing and technology. Another Rs 710 crore is planned for marketing, and Rs 200 crore for technology.
In conclusion, PhysicsWallah's financial reports for FY25 show a significant turnaround in the company's performance, with a positive EBITDA, reduced net losses, and increased revenue. The company's IPO, if successful, will provide the necessary funds for offline expansion and further investments in marketing and technology.
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