PhysicsWallah, a recently listed edtech unicorn, performed well in Q2 FY26, reporting a 26% year-over-year increase in sales. During the quarter, the company's earnings increased by 70% to Rs 69.7 crore.

Key Highlights

• PhysicsWallah’s Q2 PAT rose ~70% to ₹69.7 crore, while revenue grew 26% to ₹1,051 crore.
• Company approved ESOPs worth ~₹500 crore, signalling confidence in long-term growth and employee incentivization.

According to its consolidated financial statement obtained from the NSE, PhysicsWallah's operating revenue increased by about 26% to Rs 1,051.26 crore in Q2 FY26 from Rs 832.17 crore in Q2 FY25.

Although a thorough revenue breakdown is not disclosed in the filing, the company's main sources of income are the selling of study materials and its online and offline courses for state boards, JEE, NEET, and other engineering examinations.

Additionally, interest and gains on financial assets brought in Rs 47.14 crore, bringing the total revenue in Q2 FY26 to Rs 1,098.4 crore.

Employee benefits continued to be the biggest expense category, making up 47.3% of all costs at Rs 473 crore in Q2 FY26—a 38% increase from the same quarter the previous year. During the quarter, advertising costs rose by over 40% to Rs 84.3 crore, while depreciation and amortization expenses were Rs 104.7 crore.

The Alakh Pandey-led company's total expenses increased by 25% year over year to Rs 999.55 crore in Q2 FY26 from Rs 800.43 crore in Q2 FY25.

In terms of the bottom line, the company's earnings increased by 70% to Rs 69.7 crore in Q2 FY26 due to its increased operating scale.

Also Read: PhysicsWallah Founders Enter Billionaire Club ahead of IPO

The WestBridge Capital-backed company's sales increased by almost 30% to Rs 1,898.3 crore for the first half of FY26, but its losses increased by 87% to Rs 57.3 crore.

PhysicsWallah listed on the NSE last month for Rs 145 per share, a 33% premium over its issue price, making a stronger-than-expected public market debut. A fresh issue of Rs 3,100 crore and an offer to sell of Rs 380 crore made up the Rs 3,480 crore IPO.

PhysicsWallah disclosed a new issuance of employee stock options under its ESOP 2025 plan, totaling 3.67 crore equity shares, in a different exchange filing. The newly issued ESOPs are worth around Rs 500 crore based on the current share price of Rs 135.94.