PhysicsWallah Q1: consolidated loss narrows 31% YoY to ₹88 Cr despite QoQ widening
PAT +30.5% YoY · revenue +24.42% · margins expanding
₹1,053.95 Cr
+24.42% YoY
₹-88.28 Cr
+30.5% YoY
-7.59%
₹-0.27
PhysicsWallah's consolidated revenue grew 24.4% YoY (14.7% QoQ) to ₹1,053.95 Cr in Q1 FY27, while the consolidated net loss narrowed 30.5% YoY to ₹88.28 Cr from ₹127.01 Cr a year ago — but widened from ₹69.14 Cr in Q4 FY26. Standalone (secondary) numbers show a similar YoY improvement: revenue up 33.7% to ₹927.72 Cr and loss narrowing to ₹26.34 Cr from ₹97.64 Cr; basic EPS was -₹0.27 consolidated and -₹0.09 standalone.
Q1 FY-2027 vs prior quarters
No year-ago quarter on record — YoY cells may be blank.
The QoQ widening is almost entirely a non-cash accounting item, not a deterioration in the core business: a ₹44.35 Cr fair-value remeasurement loss on financial instruments swung from a ₹3.19 Cr gain in Q4 FY26, a ₹47.5 Cr hit. Stripping this out, the underlying operating loss actually narrowed sequentially, from roughly ₹54.8 Cr to ₹39.9 Cr. On the same adjusted basis, the YoY loss-narrowing is sharper than the headline suggests — about 64% (₹120.9 Cr to ₹43.9 Cr adjusted) versus 30.5% reported. Within segments, online remains the sole profit engine at ₹75.90 Cr (+7% QoQ, +200% YoY), while offline swung to a wider ₹27.17 Cr segment loss from ₹4.06 Cr in Q4 (still better than ₹51.76 Cr a year ago). Total segment operating result — a rough EBITDA proxy — improved 82% YoY to -₹12.66 Cr but reversed from +₹25.65 Cr in Q4, a sequential slowdown.
The stock went into the print at ₹117.12, down 13.4% over the past month of trading.
Physicswallah is guiding for revenue growth of over 30% for FY27, with an expected EBITDA improvement of upwards of 100%. The company is heavily focused on expanding its online offerings, expecting them to continue growing faster than offline, although offline is also projected for strong year-over-year growth. Managem
— This quarter: missed
Management's May 2026 guidance called for FY27 revenue growth above 30% and EBITDA improvement upwards of 100%, with offline turning profitable at 13-15% steady-state margins. Q1's 24.4% YoY revenue growth trails that full-year pace (though it's only the first of four quarters), and offline remains loss-making with a wider sequential loss — running behind the profitability timeline management laid out. No formal analyst consensus specifically for this quarter could be found in a web search, so vsStreet is unknown; management's own guidance is the only benchmark available. During the quarter the company put ₹120 Cr into wholly-owned NBFC subsidiary Finz Finance and ₹5.01 Cr into a new student-housing subsidiary, consistent with its June 4 pivot to an NBFC-partnered lending strategy — the "Others" segment (which includes financing) saw revenue fall to ₹15.26 Cr from ₹23.06 Cr and swing to a ₹4.50 Cr segment loss from a ₹2.27 Cr profit in Q4.
W1
Offline segment profitability trajectory vs management's FY27 target and 13-15% steady-state margin — Q1 offline segment loss was ₹27.17 Cr, wider than Q4's ₹4.06 Cr.
W2
Full-year revenue growth run-rate vs the >30% FY27 guide — Q1 came in at 24.4% YoY.
W3
Consolidation impact of the Sarrthi IAS stake increase to 51% (acquired July 16, 2026, post quarter-end) on segment results and non-controlling interest from Q2 FY27.
No exceptional items this quarter (std or consol); Q4 FY26 comparatives carried one-offs (₹66.45 Cr standalone impairment on subsidiary investments, ₹29.01 Cr consolidated goodwill impairment) absent this quarter. Consolidated PAT is post-NCI (owners' share -₹77.57 Cr, NCI -₹10.71 Cr, total -₹88.28 Cr). Main swing item vs Q4 is a ₹44.35 Cr non-cash fair-value remeasurement loss on financial instruments vs a ₹3.19 Cr gain in Q4 FY26 (a ₹47.5 Cr swing) — this, not the operating business, drove the QoQ loss-widening.
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