PhysicsWallah's Q2 Profit: Profits More Than Double, Strategy Shifts
If you had written off PhysicsWallah after the recent blows to edtech, it might be time to reconsider. The company just posted a net profit of ₹143.6 crore for Q2 FY27, more than doubling what they made last year. That is no rounding error. Revenue climbed 18.2% year on year to ₹1,242.3 crore. In startup terms, PhysicsWallah has hit profitability at scale, which is rare air, especially in edtech where burn rates are usually the punchline.
How did they do it? For one, expenses did rise to ₹1,105.4 crore (up nearly 11%), but revenue grew faster. Their EBITDA jumped 52.6% to ₹348 crore. Put simply, they ran tighter ships, got more from every rupee spent, and did not let costs balloon out of control just because top line looked healthy.
What's Actually Working, What's Not
The online business is still their main engine. Meanwhile, the physical centers keep popping up and filling seats. But here is a sharp move: they decided to step back from direct lending. No more easy loans for students on their own books, which reduces the risk of getting stuck with bad debt. It is a lesson many edtechs have learned a bit late, but PhysicsWallah seems to have course-corrected at the right time.
Of course, not all is rosy. NEET exam cycles slowed down, which hit enrolments and cash collection on both digital and offline fronts. Their answer: more crash courses, and trying to bring in students interested in things beyond NEET. Collections will spill into next quarter, so some numbers will lag. The management is betting on a better academic cycle ahead. Time will tell if they are being optimistic or just realistic.
The Next Bet: South India, AI, and Translation
South India is where the next wave of students sits, and PhysicsWallah wants in. Instead of opening brick-and-mortar centers everywhere, they are leaning into an online-first approach, which frankly makes a lot of sense. You do not need to build a building just to reach a student in Madurai or Vijayawada anymore. Their secret weapon: AI-powered live translation for classes in different Indic languages. That means students can learn in Tamil, Telugu, or Kannada, without hiring a fleet of regional teachers or blowing up academic costs.
They are also piloting an AI tutor. If that works, they might give personalized learning at a fraction of the usual cost. This is not some "future of education" hype; it is a practical shot at making scalable, affordable tutoring real for millions.
Elo Elo's $80 Million Bet on Microdramas
Now, shift gears to something much flashier. Elo Elo Group, which owns microdrama platform Story TV, just raised a cool $80 million in Series C funding. Since its start in 2020, the company has pulled in $130 million. When NBCUniversal leads your funding round, you know global eyes are watching. Hornbill Capital is in too. Investors are buying into the idea that Indian-language, mobile-first microdramas can be a gold mine. The market for these short, punchy shows is expected to hit $14 billion in revenue by the end of 2026.
Elo Elo plans to use this new money to bulk up its AI and push into more countries. The company wants to deliver snappy, addictive stories to a global audience that is already glued to their phones. It feels like the Netflix-for-microdramas pitch all over again, but this time with a strong Indian-language flavor.
Why This Actually Matters
PhysicsWallah and Elo Elo are both showing what Indian startups can look like when they adapt fast and play to their own strengths instead of just copying Silicon Valley models. One is turning a profit in a sector filled with loss-making giants, while the other is convincing global media giants to back Indian storytelling for phones. In both cases, innovation is more than a buzzword; it is baked into their business decisions, whether it is AI in the classroom or original content for the small screen.
Will this push toward AI and regional expansion actually deliver, or are we just seeing another hype cycle before the next round of layoffs and pivots? As funding tightens and attention spans shrink, the answer may shape how the next wave of Indian startups choose to build, and what they leave behind.
Source: https://inc42.com/buzz/physicswallahs-q2-profit-surge-elo-elo-bags-80-mn-more/
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