EdTech company PhysicsWallah (PW), long known for its online-first approach to education, is seeing its offline business evolve into a significant growth engine, contributing 45% of its revenue from operations in FY26.
In its latest shareholders’ letter, the company said its offline network now spans 353 centres across 178 cities in India and six cities in the UAE, highlighting the rapid scale-up of a business that is only in its fourth full year of operations.
While more than 91% of PW’s paid learners continue to engage through online channels, the company said its offline centres are not designed as a traditional coaching network. Instead, they function as an extension of the broader PhysicsWallah ecosystem, integrating technology, content, academic systems and data-driven capabilities into classroom learning.
Vidyapeeth drives profitability progress
The strongest validation of PW’s offline strategy comes from its Vidyapeeth centres, which account for nearly 70% of offline revenue and represent the most mature segment of the network.
According to the company, Vidyapeeth made significant progress towards profitability during FY26, supported by stronger centre-level unit economics. PW described the improvement as structural rather than a one-time gain, signalling confidence that similar trends will emerge across the broader network as centres mature.
The company said it continues to improve profitability through a focused operating model built around better student-teacher ratios, higher seat utilisation, optimised faculty costs and increased average revenue per user (ARPU).
Technology remains at the core
Despite the growing contribution from physical centres, PW reiterated that it remains a technology-led education company with a strong online foundation.
The company noted that its digital ecosystem continues to be the primary driver of learner acquisition and scale, with a substantial portion of offline student discovery also originating from its online platforms and community reach.
AI investments begin delivering results
PhysicsWallah said artificial intelligence is increasingly becoming a foundational layer across its education ecosystem. The company began investing in AI more than two years ago and is now leveraging its large learner base and proprietary educational data to build differentiated capabilities.
Nearly 33 lakh students spend more than an hour daily on the platform, generating billions of learning signals annually across subjects, formats and languages.
PW said AI is helping automate assessment generation, note preparation, practice content creation and doubt resolution, allowing teachers to devote more time to instruction and student engagement. AI-assisted academic workflows are also reducing the time and costs associated with evaluation and content development.
AI accelerates engineering and operations
Beyond academics, AI is reshaping the company’s engineering, product development and operational functions. PhysicsWallah revealed that 91% of its code is now AI-assisted, resulting in more than a twofold improvement in engineering go-to-market velocity. AI-powered tools and internal copilots are streamlining testing, debugging, documentation and deployment processes, enabling faster experimentation and product launches.
The company added that AI-driven workflows are also improving sales and operations through high-volume lead processing and AI voice agents, helping increase qualified-lead conversion rates while lowering service costs.
Teachers remain central to the learning model
The company emphasised that AI is not intended to replace educators, pointing to a 58% year-on-year increase in YouTube views as evidence that trusted teachers continue to play a critical role in learning outcomes.
Looking ahead, the company said it aims to combine AI infrastructure with strong teaching pedagogy and deep educational context. It also highlighted the development of its own small language model trained on Indian STEM data and proprietary learning interactions, which it claims is more efficient for its use cases than larger frontier models.
Strong growth across emerging learner categories
PhysicsWallah reported strong momentum in several emerging segments beyond its traditional engineering test-preparation business. Student enrolments across Foundation, Commerce, Boards and CUET categories grew 49% year-on-year, reflecting the success of the company’s strategy to engage learners earlier in their academic journey.
The Civil Services segment, including UPSC and State PSC examinations, doubled its student enrolments during the year. The company said its investment in Sarrthi IAS has complemented its offerings in this category.
Meanwhile, premium programmes such as Curious Jr. Power Batch, Infinity and Infinity Pro collectively crossed 9.6 lakh enrolments during FY26, demonstrating growing demand for higher-value learning experiences.