Q2 FY27 results analysis · November 04, 2026
Physicswallah Ltd (PWL) Q2 FY27 Results Analysis: PAT Jumps 106%, EBITDA Margin Expands 642 bps
+106.0%PAT year on year, Rs. 143.63 Cr
Source: Quarterly results filing (BSE)
Quick summary
Physicswallah Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,242.26 Cr (+18.17% YoY) and PAT growth of +106.01% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,242.26 Cr (+18.17% YoY) |
| PAT (Q2) | Rs. 143.63 Cr (+106.01% YoY) |
| EBITDA margin | 28.14% (+642 bps YoY) |
| EPS (Q2) | Rs. 0.49 (+75.00% YoY) |
Quarter Snapshot
Q2 FY27 delivered a record revenue of Rs.1,242.26 Cr (+18.17% YoY) with PAT of Rs.143.63 Cr (+106.01% YoY) versus a Q1 loss, driven by operating leverage (expenses −11.01% QoQ) and an offline segment swing to a Rs.68.00 Cr profit. EBITDA margin of 28.14% (company definition) expanded 642 bps YoY, and the FinZ lending exit was completed on schedule. The FY27 >30% revenue guidance is a stretch after H1's 20.77% growth, requiring ~39% H2 growth, while EBITDA and full-year PAT profitability targets remain on track.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue pace | "likely ahead of Q1's pace, but against a high base" | +18.17% YoY vs Q1's +24.4% pace — decelerated on the high base | Contradicted |
| NEET recovery flows into Q2 | "Q2 capturing the shifted admission/collections pulse" | Online +26.39% YoY; record revenue Rs.1,242.26 Cr | Played out |
| Offline losses narrowing | offline was (Rs.106) Cr Pre-IndAS in Q1 | Offline segment result +Rs.68.00 Cr (12.57%) | Played out |
| Treasury yields support other income | "directionally supportive" | Other income Rs.92.38 Cr, −15.14% QoQ (+95.84% YoY) | Partially |
| Fresh one-offs (Ind AS 109 marks / exceptionals) | "any fresh Ind AS 109 fair-value marks... or exceptional items" | Rs.20.11 Cr goodwill impairment; Rs.17.00 Cr NCD impairment (H1) — impairment, not a FV mark | Materialized |
| PAT vs high Q2 FY26 base | flagged as the test | PAT Rs.143.63 Cr (+106.01%); normalized Rs.157.31 Cr | Played out |
| FinZ overhang removal | "removes a strategic overhang" | Discontinued-ops presentation; sale completed Oct 3 | Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth >30% | Reiterated on the Q1 FY27 earnings call (Aug 14, 2026) | H1 +20.77%; H2 must grow ≈39% vs H2 FY26 (Rs.2,001.21 Cr) to reach Rs.5,069.40 Cr | Stretch |
| FY27 EBITDA "upwards of 100%" improvement vs FY26 Rs.549.20 Cr (company def.) | Reiterated on the Q1 FY27 earnings call | H1 EBITDA Rs.401.39 Cr; H2 needs >Rs.697.01 Cr (Q2 alone: Rs.349.54 Cr; Q3 seasonally strongest) | On Track |
| FY27 full-year group PAT profitability | Prior earnings calls ("committed to full-year PAT profitability for FY27") | H1 PAT +Rs.55.35 Cr; H2 must exceed −Rs.31.18 Cr | On Track |
| Offline full-year EBITDA profitability FY27 | Q4 FY26 call ("we are guiding on a full-year profitability") | Q2 offline segment result +Rs.68.00 Cr (12.57%) vs (27.17) in Q1; Pre-IndAS segment basis not disclosed for Q2 | On Track |
| Offline PAT profitability FY28 | Q4 FY26 call | Segment PAT not disclosed | Too Early |
| FinZ divestment within ~1 quarter | Board plan disclosed with Q1 results (Aug 14, 2026) | Completed Oct 3, 2026 at Rs.95.79 Cr | Met |
| BIGPL stake to 100% within 6 months | Acquisition announcement of Aug 14, 2026 | Not completed as of the Nov 4, 2026 filing | On Track |
| "A couple of M&As in the next two quarters" | Management statement of Feb 6, 2026 | No new acquisition announced in the Aug 14–Nov 3, 2026 compliance window | Too Early |
Key Investment Insights
Key Positives
- Revenue from operations grew 18.17% YoY to Rs.1,242.26 Cr, the largest disclosed quarter, and 18.27% QoQ
- Consolidated PAT of Rs.143.63 Cr vs a Q1 FY27 loss of Rs.88.28 Cr, up 106.01% YoY; normalized PAT Rs.157.31 Cr (+125.63% YoY)
- EBITDA (company definition) of Rs.349.54 Cr at a 28.14% margin, up from 21.72% in Q2 FY26 and 4.94% in Q1 FY27
- Offline segment result swung from Rs.(27.17) Cr in Q1 to Rs.68.00 Cr (12.57% margin)
- Online segment revenue grew 26.39% YoY to Rs.693.52 Cr with a 36.10% segment margin; online is now 55.82% of segment revenue
- H1 operating cash flow of Rs.827.57 Cr vs PAT of Rs.55.35 Cr; FCF of Rs.670.81 Cr
- FinZ lending exit completed Oct 3, 2026 at Rs.95.79 Cr; cash + bank balances + investments of Rs.3,590.18 Cr vs borrowings of Rs.11.95 Cr
- Advertisement spend fell 31.6% QoQ to Rs.87.92 Cr while revenue grew
Risk Factors
- Revenue growth decelerated to 18.17% YoY from Q1's 24.4% pace; H2 needs ~39% YoY growth to meet the FY27 >30% revenue guidance
- Offline revenue growth of 9.02% YoY remains below the ~25-30% management framing, showing residual NEET cohort effect
- Effective tax rate rose to 31.97% from 29.48% in Q2 FY26
- Rs.20.11 Cr goodwill impairment (consolidated) and Rs.54.92 Cr impairment of investment in subsidiaries (standalone) booked as exceptionals; Rs.17.00 Cr NCD impairment in H1
- Other income fell 15.14% QoQ to Rs.92.38 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.