On its earnings name on Friday, the Noida-based agency laid out plans to push deeper into the Okay-12 phase, arguing that earlier intervention in a scholar’s studying journey will translate into stronger tutorial outcomes.
Whereas Okay-12 at the moment contributes lower than 1% of income, high executives mentioned they imagine college schooling might ultimately overtake the corporate’s core test-preparation vertical, which in the present day accounts for 97% of income.
“For now, the Okay-12 push is unlikely to maneuver the needle on revenues,” mentioned Prateek Boob, co-founder of lately listed PhysicsWallah. “However within the longer run, this may grow to be a significant contributor to Ebitda. 5 years from now, Okay-12 will likely be a bigger enterprise than check preparation.”
Why faculties now
Administration argued that teaching usually begins too late to essentially change outcomes. “By the point college students enter Class 11, the injury is already accomplished,” Boob mentioned, pointing to structural gaps in school-level preparation for engineering and medical entrance exams.
Edtech gamers, most notably Byju’shad beforehand tried to monetize Okay–12 college students via after-school schooling. That mannequin bumped into hassle, leaving Byju’s largely inactive in the present day.
PhysicsWallah initially entered Okay-12 via smaller on-line choices and its early-learning model Curious Junior in 2023, however is now making a deeper push into mainstream college schooling via bodily faculties.
Boob added on the earnings name that comparable fashions in markets akin to China recommend Okay-12 schooling can ultimately generate greater revenues than check preparation.
A deeper foray into Okay-12 is one in every of 4 key focus areas for the corporate, alongside offline enlargement, acquisitions and synthetic intelligence. PhysicsWallah has earmarked ₹400 crore for constructing its Okay–12 platform via Pen Pencil, its college administration arm that homes college partnerships and owned-school initiatives.
“We have now allotted ₹400 crore thus far for constructing the Okay-12 platform,” the corporate chief monetary officer Amit Sachdeva instructed analysts. “As soon as we undergo our planning cycle for the subsequent yr, we’ll overview the place we’re and take a recent view on rising this allocation.”
The varsity technique spans a number of fashions – partnerships with present faculties below a community integration programme, greenfield and brownfield college tasks, and full administration management in choose circumstances akin to its Tender Coronary heart College partnership.
The push comes as curiosity within the education phase rises, with giant schooling gamers akin to ALLEN Profession Institute increasing into faculties and better schooling, Mint reported final yr.
Personal fairness corporations are additionally stepping up bets on college chains. Mint reported in December that Okay-12 Techno Providers, which runs Orchids Worldwide Colleges, is in talks with Vitruvian Companions and others for a funding spherical of over $150 million.
Right this moment, many college students attend college within the morning and training courses later within the day, a double workload that oldsters more and more need to keep away from. “Dad and mom need an built-in setup,” Boob mentioned.
PhysicsWallah says its expertise operating technology-enabled teaching centres via its Vidyapeeth community provides it a “proper to win” in faculties.
“If we will create worth for a Grade 8, 9 or 10 scholar in Vidyapeeth, we will create related worth in a college surroundings,” co-founder Boob mentioned, describing the technique as constructing a “test-prep-branded college” backed by standardized curriculum, pedagogy and data-driven programs.
The Okay-12 enlargement is a part of PhysicsWallah’s broader try and evolve from a test-prep specialist right into a full-stack schooling platform.
Within the December (Q3FY26) quarter, income from operations rose 34% year-on-year to ₹1,082 crore, whereas internet revenue stood at ₹102 crore, or a margin of 9%, regardless of one-time bills associated to labour code modifications and IPO prices.
For the primary 9 months of FY26, income grew 31% year-on-year to ₹2,980 crore, surpassing its full-year FY25 income of ₹2,886 crore. On-line schooling accounted for about 51% of income through the interval, whereas the offline phase contributed 46%.