How Physics Wallah Cut Its Losses in FY25: Growth, Costs & Strategy
Physics Wallah (PW), the edtech unicorn founded by Alakh Pandey and Prateek Boob (Maheshwari), showed big improvements in its FY25 (year ending March 2025) results. The company is still making losses, but they have come down sharply, and its path toward profitability looks clearer now.
Key Numbers: FY25 vs FY24
Revenue Growth:
PW’s operating revenue jumped by about 49% — from ₹1,940.7 crore in FY24 to ₹2,886.6 crore in FY25. Total income (including other sources) was ₹3,039.1 crore.
Loss Reduction:
Net loss shrank nearly 80%, falling from ₹1,131 crore in FY24 to ₹243.3 crore in FY25. A big reason: FY24 included a one-time accounting loss that didn’t repeat in FY25.
EBITDA Turnaround:
PW moved from an EBITDA loss of ₹829 crore in FY24 to an EBITDA profit of about ₹193 crore in FY25. This means PW is now making cash profits before accounting for depreciation and finance costs.
Revenue Mix: Online vs Offline
Coaching services brought in most of the money — around ₹2,498 crore.
Revenue from online (₹1,404 crore) and offline (₹1,351.9 crore) were almost equal.
The company expanded its offline reach, running 198 centers in 109 cities in FY25, up from 126 centers in FY24.
Expenses & Costs
Total spending stayed around last year’s levels: about ₹3,265 crore.
The biggest expense was employee pay and benefits at ₹1,401 crore (for over 15,700 staff).
Other rising costs:
faculty contracts, server charges, marketing (up 41%), offline operations (rent, utilities), and depreciation.
Why Losses Still Exist
Heavy offline expansion: Setting up and running physical centers is expensive.
High employee costs:
More teachers and support staff mean higher salary bills.
Higher marketing costs:
Offline centers need strong promotions to attract students.
Accounting charges:
Depreciation and lease costs reduce reported profits.
What Helped PW Improve
No repeat of the big one-time loss from FY24.
Offline growth almost matched online revenue, creating balance and resilience.
Turning EBITDA positive shows much better cost control and stronger margins.
Challenges Ahead
Scaling offline profitably:
Centers must reach good utilization or costs will outweigh benefits.
Marketing costs:
Student acquisition is getting costlier as competition grows.
Regulation risks:
Fee caps or government policies could squeeze margins.
Non-cash accounting issues:
Large adjustments still make reported profits volatile.
Execution: Managing staff, logistics, and quality consistently across 198 centers is tough.
Outlook & IPO Significance
The improved FY25 numbers make PW’s upcoming IPO more attractive to investors.
Its hybrid model (online + offline) looks promising as offline revenue is no longer small.
Better unit economics (like higher revenue per offline student) show that profitability per learner is improving.
With losses reduced, the company now has more financial breathing space to grow further.
Conclusion
Physics Wallah’s FY25 performance is a big step forward. Revenue rose by nearly 50%, losses dropped by almost 80%, and EBITDA turned positive. While costs from offline expansion and non-cash charges still keep it in the red, the trend is clearly positive.
If PW continues this discipline, it could soon break even and emerge as a strong hybrid education leader — making its IPO and long-term prospects very promising.
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