PhysicsWallah's profit doubled to 142 crore rupees in the second quarter of FY2027, revenue grew by 18%

The second quarter of the 2027 fiscal year marked a turning point for PhysicsWallah (PW), as scaling up and improving operational efficiency led to record quarterly revenue and doubled net profit.

Founder and CEO Alakh Pandey stated that the company achieved record revenue and significantly improved profitability, while the student base continues to grow in K-12 segments, local languages, and new categories. He emphasized that the company's focus remains on scaling accessible, technological education with disciplined capital allocation.

For the second quarter of the 2027 fiscal year (July to September 2026), PW recorded its highest quarterly revenue in history, driven by an increase in enrolled students and improved course delivery. Consolidated operating revenue reached ₹1242.26 crore, which is 18.2% higher compared to the same period last year. Total income, including other non-operating receipts, increased by 21.5% year-on-year to ₹1334.64 crore.

The company operates through two main service delivery channels, as well as auxiliary services. The online channel remained the primary driver of revenue growth, generating ₹693.52 crore in operating revenue for the quarter. This represents a 26.4% year-on-year growth compared to ₹548.72 crore the previous year and accounts for 55.8% of total operating revenue. The offline channel contributed ₹540.87 crore, which is 9% higher than ₹496.10 crore the previous year, making up 43.5% of operating revenue.

Other operating streams, such as YouTube advertising, hardware sales, and institutional support, brought in ₹7.87 crore, showing a 22.4% year-on-year growth.

Profitability significantly increased because fixed platform, content, and educational infrastructure costs were spread over a wider user base. Consolidated profit after tax doubled to ₹142.29 crore in the second quarter, a 104.1% increase compared to ₹69.72 crore the previous year. It is important to note that the net profit in the second quarter of the 2027 fiscal year was realized after a loss of ₹87.04 crore in the first quarter of the 2027 fiscal year.

The profit margin after tax, calculated as net income divided by operating revenue, expanded by 482 basis points to 11.5% from the previous 6.6%. Earnings before tax grew by 111.6% year-on-year to ₹209.15 crore. This amount included a one-time goodwill impairment charge of ₹20 crore and an increase in fair value of financial instruments of ₹10 crore.

EBITDA, according to Indian Accounting Standards (IndAS), reached ₹348 crore, providing a margin of 28.0% compared to ₹228 crore and a margin of 21.7% in the same period last year. Adjusted EBITDA, which accounts for fair value adjustments and lease obligations, grew to ₹399 crore with a margin of 32.1%, compared to ₹270 crore and 25.7% previously. Cash EBITDA before IndAS grew by 45.0% year-on-year to ₹233 crore, raising the margin to 18.8% from 15.3%.

Total consolidated operating expenses amounted to ₹1105.43 crore. The largest cost center was employee benefits at ₹522.38 crore, including ₹482 crore in basic salary and ₹40 crore in non-cash stock-based compensation. Other operating expenses totaled ₹237.58 crore, with marketing, advertising, and public events accounting for ₹87.92 crore.

The online segment benefited from increased student engagement and higher enrollments. The number of unique users transacting online grew by 12.9% year-on-year to 1.5 million for the quarter, while the average fee per user increased by 10.6% year-on-year to ₹4280. Growth was supported by high demand for premium course packages, as revenues from Infinity and Infinity Pro collections rose by 49% in the second quarter.

Expansion also occurred in more expensive non-medical categories: the average fee for civil services increased by 34.2%, GATE grew by 30.7%, preparatory courses by 22.6%, and MBA programs by 21.4%.

During the quarter, there was an operational shift in demand for medical entrance preparation. The postponement of the NEET UG 2026 exam results until July 16 delayed student admissions, shifting a significant portion of enrollment activity into the second quarter. Consequently, online enrollments for NEET grew by over 30% year-on-year over the three-month period.

In the offline segment, revenue reached ₹541 crore across 370 physical centers, compared to 314 centers the previous year. The offline channel recorded an EBITDA before IndAS loss of ₹8 crore in the second quarter, a decrease compared to previous periods due to improved resource utilization in mature centers.

Company management has intentionally slowed down physical expansion to 25–30 new centers annually to focus on center-level profitability and smaller footprint models. To optimize capital deployment, PW sold a portfolio of loans worth ₹96 crore from its subsidiary FinZ Finance Private Limited to Auxilo Finserve Private Limited on October 3.

The integration of artificial intelligence has enhanced operational efficiency on learning platforms. The company reported that automated systems resolve 80% of student support queries without human intervention and generate 92% of internal source code. Furthermore, the company is developing AI Tuto—a voice-based 1:1 conversational tutor, estimated to cost ₹17 per hour to serve students.

Havells India, a manufacturer of consumer electrical goods, reported on Thursday a year-on-year growth of consolidated net profit by 9.72%, reaching 349.22 crore rupees for the September quarter of fiscal year 27. This growth was driven by an increase in revenue.

According to Havells India's regulatory filings, in the July-September period of the previous year, the company recorded a consolidated net profit of 318.28 crore rupees. In the September quarter of fiscal year 27, the company's operating revenue increased by 34.57%, amounting to 6,432 crore rupees, compared to 4,779.33 crore rupees in the same period last fiscal year.

Havells' total expenses amounted to 5,991.98 crore rupees, which is 34.47% higher than the previous year. Chairman and Managing Director Anil Rai Gupta noted that the second quarter demonstrated strong business performance, including revenue growth of about 35% year-on-year and EBITDA growth of about 30%, despite stable demand amidst inflation.

Despite ongoing macroeconomic uncertainties, Anil Rai Gupta expressed optimism regarding the upcoming festive season. In the September quarter, Havells' switchgear business segment showed a revenue growth of 31.3% to 782 crore rupees. This growth was supported by increased domestic demand and the recovery of exports after disruptions in June.

The cables segment demonstrated impressive revenue growth of 47.9%, reaching 2,999 crore rupees. The growth was ensured by price increases related to raw materials, as well as a shift in the product portfolio towards larger cables. Revenue from lighting fixtures and lamps increased by 7% to 449 crore rupees due to improved demand and price stabilization.

The Consumer Electrical Goods (ECD) segment increased revenue by 10.7%, reaching 1,072 crore rupees, with growth observed across all product categories. Havells' renewable energy business continued to scale rapidly, doubling its revenue to 329 crore rupees in the September quarter, reflecting the expansion of this area. Lloyd Consumer, a consumer goods division acquired by Havells in 2017, increased revenue by 28.4% to 615 crore rupees due to increased sales volume and price hikes.

Havells India' total revenue, including other income, stood at 6,464.60 crore rupees, which is 32.86% higher in the second quarter of fiscal year 27. On Thursday, Havells India Ltd shares closed at 1,075.60 rupees on the BSE, showing a rise of 0.42% compared to the previous close.

Eternal, the parent company of Zomato and Blinkit, reported significant growth in net profit during the second quarter of fiscal year 2027. The company's profit increased by 92.3% compared to the same period last year, while revenue grew by 78% year-over-year. Nevertheless, the results were below analysts' forecasts, who expected a net profit of 250 crore rupees.

Eternal's net profit for the second quarter of fiscal year 2027 amounted to 125 crore rupees, which is higher than the 65 crore rupees recorded in the same period a year earlier. Revenue reached 24,138 crore rupees compared to 13,590 crore rupees in the corresponding quarter of the previous fiscal year.

The quick commerce segment, Blinkit, remained a key source of income, generating revenue of 19,152 crore rupees in the second quarter of fiscal year 2027. According to Eternal's data, Blinkit's average order value (NOV) grew by 79.3% year-over-year. The platform added 308 new stores, bringing the total number of stores to 2,751.

Blinkit's adjusted EBITDA improved for the sixth consecutive quarter, reaching 0.9% of NOV, equivalent to a profit of 184 crore rupees, whereas the loss a year earlier was 156 crore rupees. Eternal forecasts that Blinkit's store count will exceed 3,500 by March 2027 and potentially reach 5,000 by March 2028.

Albinder Singh Dhindsa, CEO of Eternal Group, noted that in the quick commerce business, not only the growth rate but also the quality of that growth is important. He emphasized that each store has limited capacity, and customers coming only for deep discounts use the same capacity as those ordering weekly from different categories. He added that attracting customers through price reductions might be faster, but such buyers often leave after the discounts end.

Regarding the food delivery business, Zomato demonstrated a 21.5% year-over-year increase in NOV, and the company stated that the acceleration of growth has continued for the fifth consecutive quarter. Eternal's founder, Dipinder Goyal, commented on the situation in the food delivery segment, expressing satisfaction with the current state of the business. However, he clarified that they try not to draw hasty conclusions based on a single quarter. His long-term expectation for food delivery has always been over 20% annual growth, and the last two quarters have brought the company back into this range. He also noted that this view has not changed either last year when growth slowed down or now when growth has resumed.