Edtech company PhysicsWallah is targeting over 30% revenue growth in FY27 and aims to achieve group-level profitability, driven by strong traction in online education, AI-led learning tools, and improving economics at its offline centres. The Noida-based edtech unicorn, which made its stock market debut in November 2025, narrowed its standalone net loss to ₹39.92 crore in FY26 from ₹135.63 crore in the previous financial year.

“We are a hyper-growth company and will continue to focus on sustainable top-line growth. We are aiming for over 30% revenue growth next year and more than 100% improvement in EBITDA. We also expect to deliver significant PAT profitability in FY27,” Prateek Maheshwari, Co-Founder, PhysicsWallah (PW), said in an exclusive interview with Fortune India.

“We are also targeting break-even at the EBITDA level for our Vidyapeeth and overall offline business,” he said, adding that more than 60% of Vidyapeeth centres are already profitable and generating positive cash flows.

PW Vidyapeeth is PhysicsWallah’s proprietary brand of tech-integrated offline coaching centres, launched in June 2022 in Kota, Rajasthan.

The optimism follows a sharp improvement in PhysicsWallah’s financial performance. The company narrowed its standalone net loss to ₹131.76 crore in the fourth quarter ended March 2026, compared with a loss of ₹314.18 crore in the year-ago period. Revenue from operations surged 58.4% year-on-year (YoY) to ₹735.94 crore in Q4 FY26 from ₹464.35 crore in the corresponding quarter last year. For the full year, revenue rose 39% YoY to ₹3,244.56 crore in FY26 from ₹2,333.98 crore in FY25.

Online business remains key growth engine

The improvement comes as the company continues to deepen its presence across online learning, offline coaching centres, skilling initiatives, and test preparation verticals, while increasingly integrating artificial intelligence into its learning ecosystem.

Maheshwari said online learning continues to remain the company’s strongest growth engine. Online revenue grew 39% in FY26, outpacing offline growth of 31%, and now contributes 51% of overall revenue.

“Online is asset-light, highly scalable, and offers infinite margin potential compared to offline operations,” he said, adding that the contribution from the online business could rise to 55% over the next few years.

He highlighted that newer initiatives such as state board offerings and Curious Junior, its K-8 learning platform, are emerging as exponential growth drivers. Curious Junior delivered 4x growth in FY26, while offline centre utilisation and student-teacher ratios also improved during the year.

“The major growth lever is online, followed by offline. The exponential growth drivers are our newer initiatives such as state board categories and Curious Junior, our K-8 business, which delivered 4x growth over FY25,” he added.

On offline expansion, Maheshwari said around 60% of Vidyapeeth centres are already profitable and the company plans to open 200 centres over the next three to four years, of which 75 have already been launched.

He further explained that a typical centre starts generating positive EBITDA in its second year and achieves break-even by the third year. “Our overall offline business margin improved from negative 19% to negative 10% in FY26, and we are targeting break-even at the offline business level in FY27,” he said.

He also claimed that PhysicsWallah continues to gain market share in online education, with the platform teaching nearly 20 times more students than the average of its next two competitors combined.

AI becomes strategic focus area

According to Maheshwari, artificial intelligence has emerged as another major strategic pillar for the company. PhysicsWallah has invested over ₹250 crore annually in technology talent, cloud infrastructure, and AI initiatives.

Its AI products, including AI Guru, AI Gradle, and Ask AI, are already being deployed across doubt-solving, assessment, and student engagement.

“AI has a very important role in education because it can hyper-personalise the learning journey for students. We have been early adopters since 2023. Our vision is to create a personalised AI tutor for nearly 300 million children in India,” he said.

The company is now developing a Socratic AI Tutor capable of hyper-personalised one-on-one tutoring, which Maheshwari believes could be four times more effective than traditional live tutoring.

Fintech expansion and inorganic growth plans

Alongside its core education business, PhysicsWallah is also expanding into financial services. The company recently announced plans to invest up to ₹120 crore in its wholly-owned NBFC subsidiary, FinZ Finance Private Limited, through a rights issue to support working capital and business expansion.

FinZ Finance, which received its RBI NBFC licence in September 2025 and commenced operations in March 2026, focuses on short-term academic loans for students. Maheshwari, however, clarified that the company remains cautious on capital deployment in the lending business.

“There will not be any meaningful capital allocation in this vertical. The objective is to improve inclusion in mainstream education for lower-middle-class and underprivileged students,” he said.

When asked about inorganic growth opportunities, Maheshwari said PhysicsWallah is evaluating acquisition opportunities in southern India and in the Group C and Group D examination preparation segments, where the company currently has limited distribution and market presence.

He added that the company continuously evaluates strategic opportunities that can complement its existing education ecosystem and accelerate expansion into newer categories.