PhysicsWallah Shares Rise 7.5% As Q1 Loss Narrows To ₹77.5 Crore, Revenue Jumps 24%

Shares of PhysicsWallah climbed sharply on August 17 after the edtech firm reported a significant reduction in its first-quarter loss, alongside strong revenue growth. The stock gained as much as 7.5% during the session.

The Noida-based company, which listed on the stock market in November last year, reported a consolidated loss of Rs 77.5 crore for the quarter ended June, compared with Rs 120 crore in the same period a year earlier.

Revenue rises 24% in Q1

PhysicsWallah's revenue from operations increased 24% year-on-year to Rs 1,054 crore, compared with Rs 847.1 crore in the corresponding quarter last year. Revenue was also higher than the Rs 918.8 crore recorded in the previous quarter.

The improvement came despite an increase in expenses. Total expenses rose 18% year-on-year to Rs 1,247 crore, from Rs 1,054.2 crore a year earlier. On a sequential basis, expenses increased from Rs 1,035.2 crore.

At 11 am on August 17, PhysicsWallah shares were trading 7.3% higher at Rs 125.85 apiece.

K-12 business records strong growth

The company's online K-12 and early learning business continued to expand, with enrolments rising 41% year-on-year to 7.8 lakh, from 5.5 lakh previously.

Revenue from the segment jumped 88% to Rs 105 crore, compared with Rs 56 crore in the year-ago period, according to the company.

However, the NEET examination cycle was delayed this year, affecting the timing of enrolments and resulting in lower NEET enrolments during the first quarter.

PhysicsWallah said demand for its online NEET offerings has strengthened since July after examination results were announced and the new academic cycle began, with enrolments and collections showing improved momentum.