Physicswallah544609Quarterly results

Q2 FY27 shareholders' letter: H1 revenue ₹2,293 Cr, profit after tax ₹55 Cr versus last year's loss

H1 FY27 revenue from operations ₹2,293 Cr, up 20.8% YoY; profit after tax ₹55 Cr versus a ₹57 Cr loss last year.

By ScoutQuest · Wed 4 Nov 2026, 5:40 PM IST · 3 min read

₹2,293 Cr

Q2 FY27₹1,242 CrH1 FY27₹2,293 Cr

Revenue from operations: ₹1,242 Cr (Q2 FY27) and ₹2,293 Cr (H1 FY27).

H1 FY27 Revenue from Operations: ₹2,293 Cr, up 20.8% YoY
H1 FY27 Profit After Tax: ₹55 Cr versus a ₹57 Cr loss last year
Q2 FY27 Revenue / PAT: ₹1,242 Cr (+18.2%), profit after tax ₹142 Cr at 11.5% margin

H1 and Q2 in numbers

The letter reports H1 FY27 revenue from operations of ₹2,293 Cr, up 20.8% from ₹1,898 Cr. Pre-IndAS EBITDA rose to ₹190 Cr from ₹72 Cr, lifting the margin to 8.3% from 3.8%, and profit after tax turned to ₹55 Cr from a ₹57 Cr loss a year earlier. In Q2 FY27 alone, revenue was ₹1,242 Cr (up 18.2%), Pre-IndAS EBITDA ₹233 Cr at an 18.8% margin, and profit after tax ₹142 Cr at an 11.5% margin. Treasury stood at ₹5,268 Cr as of September 30, 2026, including IPO proceeds.

How the two segments performed

Online: Q2 revenue ₹694 Cr (up 26.4%); H1 revenue ₹1,242 Cr (up 29.3%) with Pre-IndAS EBITDA of ₹312 Cr at a 25.1% margin
Offline: Q2 revenue ₹541 Cr (up 9.0%); H1 revenue ₹1,031 Cr (up 11.6%) with a Pre-IndAS EBITDA loss of ₹108 Cr, narrowed from ₹120 Cr, margin −10.5% from −13.0%
Offline centres: 370 as on 30 September 2026 against 314 a year earlier; H1 enrolments 412k against 396k
Q2 enrolments across the company: 1.85 Mn, up 10.9% YoY

The letter attributes the margin gain to operating leverage and lower costs as a share of revenue: employee cost (ex-ESOP) down 235 bps to 42.3%, other expenses down 114 bps to 23.4%, and marketing at 9.4% of revenue from 10.6%.

NEET: recovering but still behind last year

In Q2 FY27, Online NEET enrolments grew over 30%. Measured over the full admission cycle, PW Online NEET collections are about 7% below last year and enrolments about 13% below, while PW Offline NEET enrolments are about 8% lower. The company links this to a shorter post-result window after the NEET UG 2026 results and calls the impact transient. It points to new short-duration courses and crash courses, and to the anticipated move of NEET to a computer-based format in FY28 as a possible demand catalyst.

South India as the next growth leg

The letter sizes the opportunity at ~15 Mn addressable students across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala, split as ~13 Mn state-board learners in Classes 9-12 and ~2.1 Mn JEE-NEET aspirants.

63 centres in South India, of which 26 are Xylem centres
9% of H1 FY27 revenue came from South India
Xylem ownership stands at 77.27%, with a stated pathway to full ownership by FY30

Treasury use and student financing

On 3 October 2026, a loan assignment agreement was executed under which the outstanding loan book of ~₹96 Cr of wholly owned subsidiary FinZ Finance Private Limited was sold to Auxilo Finserve Private Limited, as the company exits lending. Students continue to have access to financing through third-party lending partners, and credit risk moves to the lending partner. The company describes the student-financing objective as unchanged and only the delivery model as changing.

Offline expansion is deliberately slower

56 centres opened in H1 FY27, against 128 in H1 FY26
25-30 centres planned annually for the next two years
Five residential Centres of Excellence with ~500 seats; stated ambition of a 15% share of the top 100 JEE and NEET ranks by 2029

What the letter flags as monitorables

The online business is broadening beyond JEE-NEET: categories outside these made up 73.8% of H1 enrolments, up from 64.8%. The company lists recovery of IIT-JEE and NEET, revenue conversion in Skills and stabilisation of Government Exams as key areas to track, and notes early Q2 signs: NEET enrolments up 31%, IIT-JEE enrolments up 17%, and Government Exam collections stable at +2%.

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