PhysicsWallah’s profit doubled to ₹142 crore; AI writes 90% of code, staff fell by 463
PhysicsWallah’s results and call for July to September: what doubled its profit, the first quarterly fall in staff, and why its pay bill still rose 11.6%.
PhysicsWallah, the Noida education company that listed in November 2025, earned a net profit of ₹142 crore in July–September, double the ₹70 crore of a year earlier, on revenue up 18.2% to ₹1,242.26 crore, its highest for any quarter.1 Its staff count fell in the same three months, the first fall in the eight quarter-ends its results letters cover: 19,567 employees on 30 June, 19,104 on 30 September, 463 fewer.236 “AI now writes 90% of our code,” its chief financial officer, Amit Sachdeva, told analysts on 4 November.4
₹142 crore
profit after tax, July–September, against ₹70 crore a year earlier
Press release
₹1,242 crore
revenue from operations, up 18.2%
Press release
−463
employees in the quarter, to 19,104 on 30 September
Shareholders’ letters
90%
of code written by AI, as said on the call; the letter says 92% of committed code
Call and letter, 4 November
01What doubled the profit
Revenue rose ₹191 crore and operating costs, including lease payments, rose ₹119 crore. That lifted pre-Ind AS EBITDA, the measure the company leads with, by ₹72 crore to ₹233 crore, a margin of 18.8% against 15.3%.2 Other income, which includes interest on bank deposits and gains on investments, nearly doubled to ₹92 crore from ₹47 crore, with a treasury of ₹5,268 crore that includes the IPO proceeds.2
Timing helped. The NEET result came a month late, on 16 July, and the chief executive, Alakh Pandey, said demand delayed from April–June “showed up in Q2”.4 April–June itself was a ₹87 crore loss, so the half-year profit is ₹55 crore, against a ₹57 crore loss a year earlier.2
02Fewer people, a bigger pay bill
Jinesh Joshi, an analyst at PL Capital, pointed out on the call that employees and faculty had both dipped for the first time. Management replied, “That is the right observation,” and put it down to “a lot of AI efficiencies” in the teams that make content, check quality, set test papers and mark them.4 Faculty fell by 151, to 7,117.23 The company gives no figure for job cuts, exits or hiring, so 463 is a net change. Both counts remain above September 2025’s 18,340 and 6,643.2
PhysicsWallah’s headcount fell for the first time in eight quarter-ends
Total employees on the payroll at each quarter end, December 2024 to September 2026
employees
Show tableHide table
| Employees | |
|---|---|
| Dec 24 | 14,999 |
| Mar 25 | 15,775 |
| Jun 25 | 18,028 |
| Sep 25 | 18,340 |
| Dec 25 | 18,520 |
| Mar 26 | 18,977 |
| Jun 26 | 19,567 |
| Sep 26 | 19,104 |
Source: PhysicsWallah shareholders’ letters, February to November 2026 · as of 4 November 2026
The pay bill still grew. Sachdeva said employee costs excluding stock options “were lower by 2.3%” than a year earlier.4 The company’s table shows that 2.3 is points of revenue: the cost rose 11.6%, to ₹482 crore from ₹432 crore, and went from 41.1% of revenue to 38.8%.2 For the half-year, the letter puts it in those terms: “employee cost (ex-ESOP) fell 235 bps to 42.3%”.2
03What the 90% counts, and what to watch
Across its last three results letters the figure has barely moved and the verb has. In May, “91% of our code is now AI-assisted”; in August, “AI now assists 91% of new code written”; in November, AI “writes 92% of committed code”.532 The letters give no method. The teams management named for the fall in staff did not include engineering, and spending on technology rose: ₹104 crore in April–September, from ₹70 crore, with the AI tutor among the reasons.4
PhysicsWallah held its full-year revenue guidance at about 30%, including acquisitions it expects to add under 5%.4 The first half grew 20.8%, so the second half must grow about 39% on last year’s ₹3,899.54 crore.27 The offline business lost ₹108 crore before Ind AS adjustments in the half and is guided to near break-even.24 Its first Investor Day is on 18 November, and the December count will show whether the fall in staff continues.4
Sources
- PhysicsWallah, press release on results for the quarter and half year to 30 September 2026 (NSE) — 4 November 2026
- PhysicsWallah, Shareholders’ Letter, Q2 FY27 (NSE) — 4 November 2026
- PhysicsWallah, Shareholders’ Letter, Q1 FY27 (NSE) — 14 August 2026
- PhysicsWallah, transcript of the Q2 FY27 earnings call held on 4 November (NSE) — 9 November 2026
- PhysicsWallah, Shareholders’ Letter, Q4 FY26 (NSE) — 27 May 2026
- PhysicsWallah, Shareholders’ Letter, Q3 FY26 (NSE): headcounts at December 2024, March 2025 and December 2025 — 5 February 2026
- PhysicsWallah, outcome of board meeting: unaudited results to 30 September 2026 (NSE) — 4 November 2026
Disclosure. TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.
Keep reading
