Q1 2027 Physicswallah Ltd Earnings Call

August 14, 2026

Operator: Good evening, everyone, and thank you for joining Physicswallah's Q1 FY27 earnings conference call. We hope you have had the opportunity to review our financial results and shareholders' letter, which have been uploaded on the stock exchanges and are also available on our investor relations website. Joining us today are Mr. Alakh Pandey, CEO and whole-time director, Mr. Prateek Maheshwari, whole-time director, and Mr. Amit Sachdeva, Chief Financial Officer. Before we begin,

Operator: Good evening, everyone, and thank you for joining PhysicsWallah's Q1 FY27 Earnings Conference Call. We hope you have had the opportunity to review our financial results and shareholders' letter, which have been uploaded on the stock exchanges and are also available on our investor relations website. Joining us today are Mr. Alakh Pandey, CEO and whole-time director, Mr. Prateek Maheshwari, whole-time director, and Mr. Amit Sachdeva, Chief Financial Officer. Before we begin,

Speaker #1: Joining us today are Mr. Alak Pande, CEO and Whole-time Director; Mr. Prateek Boop, Whole-time Director; and Mr. Amit Sachadeva, Chief Financial Officer. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature and should be read together with the risk factors disclosed in our public filings.

Operator: I would like to remind everyone that certain statements made during this call may be forward-looking in nature and should be read together with the risk factors disclosed in our public filings. We request participants to limit themselves to two questions at a time and rejoin the queue for any additional questions. With that, I would now like to hand the call over to Mr. Amit Sachdeva. Please go ahead.

Speaker #1: We request participants to limit themselves to two questions at a time, and rejoin the queue for any additional questions. With that, I would now like to hand the call over to Mr. Amit Sachadeva.

Speaker #1: Please go ahead.

Speaker #2: Hi. Thank you. Good evening, everyone. Thank you all for joining our first quarter earnings call for Physicswallah. We're making good progress across all our education categories.

Amit Sachdeva: Hi. Thank you. Good evening, everyone. Thank you all for joining our first quarter earnings call for Physicswallah. We are making good progress across all our education categories. Our focus now is to continue to build online early learning and K-12 business, which has grown by almost 88% year-over-year. We are also tracking well on our offline business, with focus on center-level cohort profitability. Like always, we will cover our financial results, key business, and other updates, and in the last, we can open the call for questions. Our online early learning in K-12 includes Foundation, Pre-Foundation, Curious Junior, Commerce, PW SIP, including our state boards. We will talk about these exam categories in detail as we go through the call.

Amit Sachdeva: Hi. Thank you. Good evening, everyone. Thank you all for joining our first quarter earnings call for PhysicsWallah. We are making good progress across all our education categories. Our focus now is to continue to build online early learning and K-12 business, which has grown by almost 88% year-over-year. We are also tracking well on our offline business, with focus on center-level cohort profitability. Like always, we will cover our financial results, key business, and other updates, and in the last, we can open the call for questions. Our online early learning in K-12 includes Foundation, Pre-Foundation, Curious Junior, Commerce, PW SIP, including our state boards. We will talk about these exam categories in detail as we go through the call.

Speaker #2: Our focus now is to continue to build online early learning in K-12 business, which has grown by almost 88% year over year. We are also tracking well on our offline business with focus on center-level cohort profitability.

Speaker #2: Like always, we'll cover our financial results, key business and other updates, and in the last weekend open the call for questions. Our online early learning in K-12 includes foundation, pre-foundation, curious junior, commerce, SIP, boards, including our state boards.

Speaker #2: We will talk about these exam categories in detail as we go through the call. In terms of our quarterly results, we are happy to announce that our first quarter revenue from operations closed at ₹1,054 crores, a year-over-year increase of over 24%.

Amit Sachdeva: In terms of our quarterly results, we are happy to announce that our first quarter revenue from operations closed at INR 1,054 crores, a year-over-year increase of over 24%, in line with what we were expecting. Revenue from online grew 33% year-over-year, and offline and other businesses grew at 16%. Our Vishwas Diwas collections and early enrollments have been very encouraging across all our exam categories. As we had mentioned in the Q4 shareholder letter, our business continues to scale with the cyclical nature of the academic session as enrollments continue at the start of the year and batches commence progressively in line with the academic calendar. Given the seasonality, our first quarter pre-interest EBITDA closed at -44 crores, equating to 4%, with an improvement of 624 basis points from Q1 of last year.

Speaker #2: In line with what we were expecting. Revenue from online grew 33% year over year, and offline and other businesses grew at 16%. Our Vishwas Divas collections and early enrollments have been very encouraging across all our exam categories.

Speaker #2: As we mentioned in the Q4 shareholder letter, our business continues to scale in line with the cyclical nature of the academic session, as enrollments increase at the start of the year and batches commence progressively in accordance with the academic calendar.

Speaker #2: Given this seasonality, our first quarter pre-index beta closed at negative ₹44 crore, equating to 4%, with an improvement of 624 basis points from Q1 of last year.

Speaker #2: Our profit before tax for the current quarter was negative ₹84 crores, against ₹152 crores for last year, same quarter, and an improvement of 995 basis points.

Amit Sachdeva: Our profit before tax for the current quarter was at -84 crores against 152 crores for last year, same quarter, an improvement of 995 basis points. We also took a one-time non-cash charge on account of our additional stake purchase in Sarthak IAS, largely due to better-than-expected financial performance of Sarthak. EBITDA was positive in Q1, closed at 52 crores compared to -21 crores last year, same period. Like I said, pre-interest EBITDA of -44 crores as against 88 crores of last year, same quarter, an improvement of 624 basis points. All of this happened through all our leverage coming through our cost items. Our employee costs without ESOP costs were lower by 2.6% as compared to last year.

Speaker #2: We also took a one-time, non-cash charge on account of our additional stake purchase in Saathi IS, largely due to the better-than-expected financial performance of Saathi.

Speaker #2: EBITDA was positive in Q1, closing at ₹52 crores, compared to negative ₹21 crores last year, same period. Like I said, pre-Ind AS EBITDA of minus ₹44 crores as against ₹88 crores of last year's same quarter, an improvement of 624 basis points.

Speaker #2: All of this happened through all our leverage coming through our cost items. Our employee costs without ESOP costs were lower by 2.6% as compared to last year.

Speaker #2: Also, our current quarter ESOP costs remained flat, in line with what we had expensed in the first quarter of last year, and gave us a leverage of 117 basis points.

Amit Sachdeva: Also, our current quarter ESOP costs remained flat, in line with what we had expensed in the first quarter of last year and gave us a leverage of 117 basis points. We continue to see leverage on our distribution and marketing expenses. Our marketing spends for first quarter were 128 crores against 117 crores, an improvement of 172 basis point year-over-year. Also, as part of improving our quality of reporting, we had committed to initiate segment-level reporting and post discussion with our auditors. We have reported revenues and EBITDA separately for our online and offline business for the first time. We have also provided a reconciliation of the online EBITDA and offline EBITDA along with our overall EBITDA. Given our academic and cyclical nature of the business, we believe full year view of our segments will provide meaningful direction to our business.

Speaker #2: We continue to see leverage in our distribution and marketing expenses. Our marketing spend for the first quarter was ₹128 crore, compared to ₹117 crore, an improvement of 172 basis points year over year.

Speaker #2: Also, as part of improving our quality of reporting, we had committed to initiate segment-level reporting and post discussion with our auditors we have reported revenues and EBITDA separately for our online and offline business for the first time.

Speaker #2: We've also provided a reconciliation of the online EBITDA and offline EBITDA along with our overall EBITDA. Given our academic and cyclical nature of the business, we believe full-year view of our segments will provide meaningful direction to our business.

Speaker #2: This was also one of the key reasons for us to report the financials on the last day that was permissible. One of the impacts that we saw in this quarter was the NEET examination pattern change.

Amit Sachdeva: This was also one of the key reasons for us to report the financials on the last day that was permissible. One of the impacts that we saw in this quarter was the NEET examination pattern change. We did see an impact on our collections and enrollments across our core business and our subsidiaries. We do believe while NEET UG calendar shifted by 5 to 7 weeks this year, our collections for the results announcement on 16 July have been encouraging, and we have seen almost 50% growth as compared to last year. Physicswallah is now moving beyond its strength in test prep to build a complete learning journey for students, starting much earlier with online early learning in K12 education and continuing all the way through competitive exams, higher education, and skills.

Amit Sachdeva: This was also one of the key reasons for us to report the financials on the last day that was permissible. One of the impacts that we saw in this quarter was the NEET examination pattern change. We did see an impact on our collections and enrollments across our core business and our subsidiaries. We do believe while NEET UG calendar shifted by 5 to 7 weeks this year, our collections for the results announcement on 16 July have been encouraging, and we have seen almost 50% growth as compared to last year. PhysicsWallah is now moving beyond its strength in test prep to build a complete learning journey for students, starting much earlier with online early learning in K12 education and continuing all the way through competitive exams, higher education, and skills.

Speaker #2: We did see an impact on our collections and enrollments across our core business and our subsidies island. We do believe while need UG calendar shifted by 5 to 7 weeks this year, our collections forced the results announcement on July 16 have been encouraging, and we've seen almost 50% growth as compared to last year.

Speaker #2: PW is now moving beyond its strength in test prep to build a complete learning journey for students. Starting much earlier with online early learning in K-12 education, and continuing all the way through competitive exams higher education and skills.

Speaker #2: The idea is to use the same approach that made PW successful with our earlier categories, live classes, affordability, online-first teaching, focused on outcomes, and bring it to young learners too.

Amit Sachdeva: The idea is to use the same approach that made Physicswallah successful with our earlier categories: live classes, affordability, online first teaching focused on outcomes, and bring it to young learners too. We have almost doubled our revenues from this category year-over-year, and we will continue to build on this. We have detailed this in question number 3 of our Q1 shareholders letter and remain bullish on this category to grow. In terms of our overall treasury and cash position, as of 30 June, our treasury is INR 5,600 crores, including IPO proceeds of INR 2,000 crores. Like I mentioned last time, our capital allocation will largely be towards new online content and categories, both organic and inorganic. Our approach to offline expansion will be opportunistic and limited to geographies that fit into our cohort economics. Accordingly, new centers planning would probably get decided over the next two quarters.

Amit Sachdeva: The idea is to use the same approach that made PhysicsWallah successful with our earlier categories: live classes, affordability, online first teaching focused on outcomes, and bring it to young learners too. We have almost doubled our revenues from this category year-over-year, and we will continue to build on this. We have detailed this in question number 3 of our Q1 shareholders letter and remain bullish on this category to grow. In terms of our overall treasury and cash position, as of 30 June, our treasury is INR 5,600 crores, including IPO proceeds of INR 2,000 crores. Like I mentioned last time, our capital allocation will largely be towards new online content and categories, both organic and inorganic. Our approach to offline expansion will be opportunistic and limited to geographies that fit into our cohort economics. Accordingly, new centers planning would probably get decided over the next two quarters.

Speaker #2: We've almost doubled our revenues from this category over a year, and we'll continue to build on this. We have detailed this in question number three of our Q1 shareholders' letter, and remain bullish on this category to grow.

Speaker #2: In terms of our overall treasury and cash position, as of June 30th, our treasury is ₹5,600 crores, including IPO proceeds of ₹2,000 crores. Like I mentioned last time, our capital allocation will largely be towards new online content and categories, both organic and inorganic.

Speaker #2: Our approach to offline expansion will be opportunistic and limited to geographies that fit into our cohort economics. Accordingly, new center planning would probably get decided over the next two quarters.

Speaker #2: We are also keenly looking at AI-first opportunities that will complement our offerings and what we are building as part of our personalized AI tutor investments.

Amit Sachdeva: We are also keenly looking at AI first opportunities that will complement our offerings and what we are building as part of our personalized AI tutor investments. I will take a moment here, hand the phone to Alex now to provide an overview of our business and new initiatives that we are now taking in the business. Alex.

Speaker #2: I'll take a moment here and hand the phone to Alexa now, who will provide an overview of our business and the new initiatives that we are now taking in the business.

Speaker #2: Alexa.

Speaker #3: Thank you so much, Amit Sir. Hello, good evening, everyone. A very happy Independence Day in advance. The results are amazing, as expected, and everything is online.

Alakh Pandey: Thank you so much, Amit. Hello, good evening all. A very happy Independence Day in advance. The results are amazing as expected, and everything is online, in line with what we were expecting this year. A couple of things to tell, that apart from our test prep business, which has been going as usual, growing as Amit rightly quoted. Apart from test prep and the competitive exams, we have stepped into the school exam preparation, the K12 online business. This is pure asset light, pure online business, the online tuition. It has grown by 41% enrollment-wise from 0.55 million to 0.78 million. Revenue-wise, it has grown by 88% year-on-year, from INR 56 crores to INR 105 crores. This includes pre-foundation grade 6 to 8, plus Curious Junior, our state boards categories across different states. This seems to be a very promising future for us.

Speaker #3: In line with what we were expecting this year, a couple of things to tell: apart from our test prep business, which has been going as usual—growing, as Amit sir has rightly quoted—apart from test prep and the competitive exams, we have stepped into the school exam preparation, that K-12 online business.

Speaker #3: This is a pure asset-light, pure online business—the online tuition. It has grown by 40%, 41% enrollment-wise, from 0.55 million to 0.78 million. Revenue-wise, it has grown by 88% year-on-year, from ₹56 crore to ₹105 crore.

Speaker #3: This includes pre-foundation, grades 6 to 8, Curious Junior, our state boards, and categories across different states. This seems to be a very promising future for us.

Speaker #3: More and more students who are going to schools are opting for online tuition, and this is a huge new market. State boards is a sixth crore TAM across India, and apart from that, grade 6 to 8, grade 3 to 5—so everything we are exploring, and it is growing tremendously.

Alakh Pandey: More and more students who are going to schools are opting for online tuition, and this is a huge another market. State board is a 6 crore TAM across India, and apart from that, the grade 6 to 8, grade 3 to 5, everything we are exploring, and it is growing tremendously. Apart from this, we were investing in a category called NEET PG, which may become a big category. We have seen competitors doing immense business in this particular category. This year we have seen NEET PG enrollments growing approximately by 50%, and the collections are growing by 100% in NEET PG. This category is a big bet for us. Apart from this, some of our competitive exam categories like CA, CS, ACCA, witnessed an enrollment growth of 30%. All this is in line.

Speaker #3: Apart from this, we were investing in a category called Need PG, which may become a big category. We have seen competitors doing immense business in this particular category, and this year we have seen Need PG enrollments growing approximately by 50%, and the collection are growing by 100% in Need PG.

Speaker #3: This category is a big bet for us. Apart from this, some of our competitive exam categories like CA, CS, and ACCA witnessed an enrollment growth of 30%.

Speaker #3: So all this is in line. As rightly said by Amit G, as rightly said by Amit G, that there is a kind of dent that can be seen around Need enrollment, and we have highlighted this in this previous quarterly meeting as well.

Alakh Pandey: As rightly said by Amit, there is a kind of trend that can be seen around NEET enrollment, and we have highlighted this in the previous quarterly meeting as well. This is primarily because of the shift in the cycle of the NEET examination, which happened in 2024 as well. On an annual basis, we saw no change in the overall enrollment in 2024. Similar results we are expecting this year, and we can witness it happening in July as well. The enrollment for NEET have shifted. The online, if you see the growth of online is, we can witness at 33%, whereas the offline growth, if you see, it's growing at 14%, because a large part of our offline comes from NEET examination. The enrollments have shifted by 5 or 6 weeks.

Speaker #3: This is primarily because of the shift in the cycle of the Need examination, which happened in 2024 as well, and annual basis we saw no change in the overall enrollment in 2024, and similar results we are expecting this year, and we can witness it happening in July as well.

Speaker #3: So, the enrollment for NEET has shifted. If you see, the growth of online is—we can witness it at 33%, whereas the offline growth, if you see, it's going at 14%, because a large part of our offline comes from NEET examination.

Speaker #3: So, the enrollment has shifted by 5 or 6 weeks, so we can witness that enrollment and that growth in the next quarter to come.

Alakh Pandey: We can witness that enrollment and that growth in the next quarter to come. That's all from my side. Everything is in line. As we said, we are not doing any new capital allocation. No new surprises are going to come from here. I hand it over to Prateek.

Speaker #3: So, that's all from my side. Everything is in line as we said. We are not doing any new capital allocation; no new surprises are going to come from here.

Speaker #3: I hand it over to Pratik sir.

Speaker #4: Hello, good evening everybody. Amit and Alex have given the update over the numbers. I would like to touch upon a couple of new initiatives which we have entered into this quarter.

Amit Sachdeva: Hello, good evening, everybody. Amit and Alex have given the update over the numbers. I would like to touch upon a couple of new initiatives which we have entered this quarter. One is the launch of the PW Books app, which is a digital book learning experience, AI native experience of reading books. A very solid initial traction in this regard, which we have covered into our shareholder letter as well. Along with that, we have created a new category for skilling called PW Earners, in which short-term skilling courses have been provided regarding digital marketing, graphic design, AI-led courses, which is shaping up quite well. Along with that, Pi, which is our OTT learning platform, and PW Talk, which we have mentioned in our earlier shareholder letters, are continuing to grow.

Prateek Maheshwari: Hello, good evening, everybody. Amit and Alex have given the update over the numbers. I would like to touch upon a couple of new initiatives which we have entered this quarter. One is the launch of the PW Books app, which is a digital book learning experience, AI native experience of reading books. A very solid initial traction in this regard, which we have covered into our shareholder letter as well. Along with that, we have created a new category for skilling called PW Earners, in which short-term skilling courses have been provided regarding digital marketing, graphic design, AI-led courses, which is shaping up quite well. Along with that, Pi, which is our OTT learning platform, and PW Talk, which we have mentioned in our earlier shareholder letters, are continuing to grow.

Speaker #4: One is the launch of the PW Books app, which is a digital book learning experience—an AI-native experience for reading books. We have seen very solid initial traction in this regard.

Speaker #4: Which we have covered in our shareholder letter as well. Along with that, we have created a new category for skilling called Earners, in which short-term skilling courses have been provided regarding digital marketing, graphic design, and AI-led courses.

Speaker #4: Which is shaping up quite, quite well. Along with that, PIE, which is our OTT learning platform, and PW Talk, which we have mentioned in our earlier shareholder letters, continue to grow rapidly, with 130,000 enrollments in Talk and 40,000 enrollments in PIE.

Prateek Maheshwari: Rapidly by 130,000 enrollments in PW Talk and 4,000 enrollments in Pi. Along with that, AI remains the core focus area for the company. We have launched Ask AI, which is AI-led doubt-solving engine within our batches. Now we are witnessing majority of our doubts are now being solved by Ask AI, which is a great achievement by our product team. Along with that, we are creating an AI companion for the kids and an AI tutor, which is a one-to-one Socratic AI tutor at a very affordable price. This product is already in beta phase, and by next quarter, we will roll it out to our students. Along with that, AI-led efficiency is also kicking in within the company. You can see the leverage coming in our people cost is because of some of the AI-led automation which we have achieved over the period of time.

Speaker #4: Along with that, AI remains the core focus area for the company. We have launched Ask AI, which is an AI-led, doubt-solving engine within our batches.

Speaker #4: Now, we are witnessing that the majority of our doubts are now being solved by Ask AI, which is a great achievement by the product team. Along with that, we are creating a companion AI for kids, and an AI tutor, which is a one-to-one, so-called critic AI tutor at a very affordable price.

Speaker #4: This product is already in beta phase, and by next quarter, we will roll it out to our students. Along with that, AI-led efficiency is also kicking in within the company.

Speaker #4: You can see the leverage coming in our people cost is because of some of the AI-led automation which we have achieved over the period of time.

Prateek Maheshwari: Along with that, a couple of numbers I would like to highlight is a strong online growth, 33% revenue growth as well as almost 600 basis point improvement in bottom line. Offline also, we have witnessed 14% revenue growth as well as 400 basis points improvement in our bottom line. A couple of specific updates which we have already spoken, vernacular, which is a vision to make a pan-India brand. We have 1.7x jump in our enrollments and revenue in vernacular categories. K12, Alakh already spoke about 41% jump in enrollment and 88% jump in our revenue. Along with that, our state board, which is a huge stamp, the enrollments are doubled, so does the revenue is doubled. So there are a couple of achievements which we have demonstrated in our shareholder letter as well.

Speaker #4: Along with that, a couple of numbers I would like to highlight are strong online growth, 33% revenue growth, as well as an almost 600 basis point improvement in the bottom line.

Speaker #4: Offline also, we have witnessed 14% revenue growth as well as a 400 basis points improvement in our bottom line. A couple of specific updates, which we have already spoken—vernacular, which is our vision to make a pan-India brand.

Speaker #4: We have seen a 1.7x jump in our enrollments and revenue in vernacular categories. K-12, Alex already spoke about a 41% jump in enrollment and an 88% jump in our revenue.

Speaker #4: Along with that, our state board, which is a huge, huge TAM, the enrollments have doubled, so the revenue has also doubled. These are a couple of achievements which we have demonstrated in our shareholder letter as well.

Prateek Maheshwari: Along with the capital allocation, we have decided to divest Findi Fintech, and we have already received couple of interest and signed two non-binding term sheets. So probably in a quarter timeline, we will be able to achieve this divestment. So that is majorly from my side, and we can open the house for questions.

Speaker #4: Along with the capital allocation, we have decided to divest Finzi Fintech and we have already received a couple of interest and signed two non-minding term sheets.

Speaker #4: So probably in a quarter timeline we will be able to we will be able to achieve this divestment. So that is majorly from my side and we can open the house for questions.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. We also request that you please limit yourselves to two questions only. You may rejoin the queue if you have any further questions. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Anmol Garg with DAM Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question.

Speaker #1: We also request that you please limit yourselves to two questions only. You may rejoin the queue if you have any further questions. Ladies and gentlemen, we will now wait for a moment.

Speaker #1: While the question queue assembles, our first question comes from the line of Anmol Garg with DAM Capital. Please go ahead.

Speaker #5: Hi, thanks for the opportunity. A couple of things I wanted to understand. Sir, while we have indicated that there's a 50% growth in our online business for August, could you indicate, on a like-to-like basis, what would have been the growth in this quarter if NEET exams were happening on time, based on the registrations we had seen in early Q2?

Anmol Garg: Hi. Thanks for the opportunity. A couple of things that I wanted to understand. Sir, while we have indicated that there is a 50% growth in our online business for August, but if you can indicate on a like-to-like basis what could have been the growth in this quarter if NEET exams were happening on time based on the registration as we have seen in Q2. Also, as a part of that, you can also indicate what is the total registration in the repeat batch for us.

Speaker #5: And also, as a part of that, can you indicate what is the total registration in the repeat batch for us?

Speaker #4: Sure. I have moved this to Vikram this side. I lead investor relations here at Physicswallah. I think the offline revenue growth that has been witnessed, to the tune of 14% for this quarter year-over-year, would have been to the tune of 20 to 25% had the NEET examination cycle sort of been over by the 4th of May in terms of the exam.

Prateek Maheshwari: Sure. Hi, Anmol. This is Vikram this side. I lead investor relations here at Physicswallah. I think the offline revenue growth that has been witnessed to the tunes of 14% for this quarter YoY, would have been to the tunes of 20% to 25% had the NEET examination cycle would have sort of been over by 4 May in terms of the exam. If the results would have been out timely, which is early June. If that would have been the cycle, I think the revenue growth would have been to the tunes of 20% to 25%, and definitely that would have flown into our margins as well because most of the costs, as you would imagine in the nature of business of ours, are pretty much fixed.

Vikram Bhardwaj: Sure. Hi, Anmol. This is Vikram this side. I lead investor relations here at PhysicsWallah. I think the offline revenue growth that has been witnessed to the tunes of 14% for this quarter YoY, would have been to the tunes of 20% to 25% had the NEET examination cycle would have sort of been over by 4 May in terms of the exam. If the results would have been out timely, which is early June. If that would have been the cycle, I think the revenue growth would have been to the tunes of 20% to 25%, and definitely that would have flown into our margins as well because most of the costs, as you would imagine in the nature of business of ours, are pretty much fixed.

Speaker #4: And if the results had been out on time, which is early June, if that had been the cycle, I think the revenue growth would have been in the range of 20 to 25%.

Speaker #4: And definitely that would have flown into our margins as well because most of the costs as you would imagine in the nature of business of ours are pretty much fixed.

Speaker #4: But having said that, I think this is just a quarterly shift for us. And as Alexa had already highlighted, we definitely see that more so from a year-long perspective.

Vikram Bhardwaj: Having said that, I think this is just a quarterly shift for us, and as Alakh sir had already highlighted, we definitely see that more so from a year-long perspective. We are pretty much in line to deliver what we have provisioned in terms of our annual operating plans internally.

Speaker #4: We are pretty much in line to deliver what we have provisioned in terms of our annual operating plans internally.

Speaker #5: And also, if you can, indicate on the online side as well.

Anmol Garg: If you can indicate on the online side as well.

Speaker #4: Sure. So, on the online side again, in terms of enrollments, I think we would have seen at least 100,000 to 150,000 more enrollments in terms of the need. But having said that, our online mix is right now very well diversified in terms of the number of categories that we have.

Vikram Bhardwaj: Sure. On the online side, again, in terms of enrollments, I think we would have seen at least 1 to 1.5 lakh more enrollments in terms of the NEET. Having said that, our online mix is right now very well diversified in terms of the number of categories that we have. Even with the launch of PW Earners and few other categories that we have now launched, the enrollment has largely been compensated for by these newer categories that we have launched within our online mix.

Speaker #4: So, even with the launch of Earners and a few other categories that we have now launched, the enrollment has largely been compensated for by these newer categories that we have launched within our online mix.

Speaker #5: Secondly, so are we planning to introduce star teachers into our offline business? And can this be a drag to our margins in near term?

Anmol Garg: Secondly, are we planning to introduce star teachers into our offline business? Can this be a drag to our margins in near term? Does our margin guidance remain same that we will be breakeven by the end of this year?

Speaker #5: What is our margin guidance? Does it remain the same that we'll be break-even by the end of this year?

Speaker #4: No, no. So I think the overall guidance for the offline business is near profitability this year. We are confident that we will achieve that guidance.

Vikram Bhardwaj: No, no. I think the overall guidance for offline business is near profitability this year. We are

Alakh Pandey: No, no. I think the overall guidance for offline business is near profitability this year. We are We are confident that we will achieve those guidance. Overall, we are improving the teacher quality and the delivery and the experience of offline. That is what we have guided in our last call, that is coming from slower expansion as well as more focused approach. There is no abrupt increase in average teacher cost in offline. Star teachers in online. Is that the question? Star teacher launch in online?

Alakh Pandey: We are confident that we will achieve those guidance. Overall, we are improving the teacher quality and the delivery and the experience of offline. That is what we have guided in our last call, that is coming from slower expansion as well as more focused approach. There is no abrupt increase in average teacher cost in offline. Star teachers in online. Is that the question? Star teacher launch in online? Offline. Offline. No. We do not use star teachers in offline. We produce our own teachers through our faculty training program, and there is a batch size of 80 students only. There we do not have a single teacher teaching thousands of students. There is no star teacher culture in the offline. We are improving the student-teacher ratio. We are improving the average teacher cost.

Speaker #4: And overall, we are improving the teacher quality and the delivery and the experience of offline. And that is what we have guided in our last call—that this is coming from slower expansion as well as a more focused approach.

Speaker #4: There is no abrupt increase in average teacher cost in offline.

Speaker #5: Star teachers online. Is that the question?

Speaker #4: Star teacher launch in online.

Speaker #5: Offline, offline.

Anmol Garg: Offline. Offline. No.

Speaker #4: No, no, no.

Alakh Pandey: We do not use star teachers in offline. We produce our own teachers through our faculty training program, and there is a batch size of 80 students only. There we do not have a single teacher teaching thousands of students. There is no star teacher culture in the offline. We are improving the student-teacher ratio. We are improving the average teacher cost. So, that is being delivered in overall profitability of offline. So, no major surprise there.

Speaker #5: Star teachers are offline. We reproduce our own teachers through our faculty training program, and there is a batch size of only 50 students. So, we don't have a single teacher teaching thousands of students.

Speaker #5: So there is no star teacher culture in the offline.

Speaker #4: And we are improving the student-teacher ratio. We are improving the average teacher cost, and that is being delivered in the overall profitability of offline.

Alakh Pandey: So, that is being delivered in overall profitability of offline. So, no major surprise there. Understood. One last thing is, if you can elaborate on the cash side. What are the type of acquisitions that we are looking on, particularly on the online side of the business? Do we want to diversify away from STEM when we are looking towards M&A, or is it more towards a geographical or a language type of expansion that we are looking for? This remains the same in terms of category expansion or in terms of geographical expansion. The focus is to have online effect, and overall treasury is INR 5,600 odd crores as of 31 July. We have a detailed question over question number 6 in section B in our investor shareholder letter, so you can refer that. Sure. Thank you so much, sir, for answering the questions.

Speaker #4: So, yeah, no major surprises there.

Speaker #5: Understood, understood. And one last thing—if you can elaborate on the cash side: what are the types of activations that we are looking at, particularly on the online side of the business?

Anmol Garg: Understood. One last thing is, if you can elaborate on the cash side. What are the type of acquisitions that we are looking on, particularly on the online side of the business? Do we want to diversify away from STEM when we are looking towards M&A, or is it more towards a geographical or a language type of expansion that we are looking for? T

Speaker #5: Do we want to diversify away from STEM when we are looking towards M&A, or is it more towards a geographical or a language-type expansion that we are looking for?

Speaker #4: So, this remains the same. In terms of categorical expansion or geographic expansion, the focus is to have online assets, and the overall treasury is ₹5,600 crore as of 31st July.

Alakh Pandey: his remains the same in terms of category expansion or in terms of geographical expansion. The focus is to have online effect, and overall treasury is INR 5,600 odd crores as of 31 July. We have a detailed question over question number 6 in section B in our investor shareholder letter, so you can refer that. Sure. Thank you so much, sir, for answering the questions.

Speaker #4: And we have a detailed answer to question number six in Section B of our investor shareholder letter, so you can refer to that.

Speaker #5: Sure, sure. Thank you so much for answering the questions.

Speaker #1: Thank you. Our next question comes from the line of Gaurav with Axis Capital. Please go ahead.

Operator: Thank you. Our next question comes from the line of Gaurav with Axis Capital. Please go ahead.

Speaker #4: Yeah, hi. I had a few questions. First of all, your enrollment growth, you mentioned, has been impacted because of NEET. But Vikram, even you gave some numbers adjusted for the NEET impact.

[Analyst] (Axis Capital): Yeah. Hi. I just had a few questions. First of all, your enrollment growth you mentioned has been impacted because of NEET. But Vikram, even you gave some numbers adjusted for the NEET impact. The online would still have been, say, around 19%, 20%, and offline would have been another 20%, 25%. Where do we stand versus our guidance for the full year's revenue of 30%? I just want to check whether you are maintaining that guidance as of now.

Gaurav Malhotra: Yeah. Hi. I just had a few questions. First of all, your enrollment growth you mentioned has been impacted because of NEET. But Vikram, even you gave some numbers adjusted for the NEET impact. The online would still have been, say, around 19%, 20%, and offline would have been another 20%, 25%. Where do we stand versus our guidance for the full year's revenue of 30%? I just want to check whether you are maintaining that guidance as of now.

Speaker #4: The online would still have been, say, around 19–20%, and offline would have been another 20–25%. Where do we stand versus our guidance for the full-year revenue of 50%?

Speaker #4: I just want to check whether there’s sort of maintaining that guidance as of now.

Speaker #3: So Gaurav, essentially, as you rightly mentioned, right, NEET would have had that impact. But having said that, I think government exams also were one of the impacts in terms of how the Q1 enrollments have shaped up.

Vikram Bhardwaj: Gaurav, essentially, as you rightly mentioned. NEET would have had that impact. Having said that, I think government exams also was one of the impacts in terms of how the Q1 enrollments have shaped up. Having said that, I think at an overall revenue level, we stood at around INR 1,054 crores against INR 847 odd crores that we had delivered in Q1 FY26. This is the primary fundamental sort of a metric that you should broadly look at. While we did around INR 847 odd crores in top line in Q1 FY26, the overall number that was there for FY26 was essentially INR 3,900 odd crores. Similarly, I think from a INR 1,054 odd crores top line that we have delivered in Q1, we are largely in line to deliver the annual operating plan that we have for FY27.

Speaker #3: But having said that, I think at an overall revenue level, we stood at around ₹10.54 crores against ₹8.47-odd crores that we had delivered in Q1 FY25.

Speaker #3: This is the primary fundamental sort of a metric that you should broadly look at. While we did around 8,47 odd crores in top line in Q1 FY 25, FY 26, the overall number that was there for FY 26 was essentially 3,900 odd crores.

Speaker #3: So similarly, I think from a ₹1,054 crore top line that we have delivered in Q1, we are largely in line to deliver the annual operating plan that we have for FY27.

Speaker #3: Having said that, I think there would be an interplay that would keep happening between the enrollment vector as well as the ACPU vector. These two should not be taken as rigid metrics to sort of plot our business model for the future.

Vikram Bhardwaj: Having said that, I think there would be an interplay that would keep happening between the enrollment vector as well as the ARPU vector. These two should not be taken as rigid metrics to plot our business model for future. There would be a certain trade-off that would keep on happening between these two. But largely in terms of the top line that we have committed, we would be largely aligned with our AOP.

Speaker #3: There would be a certain trade-off that would keep on happening between these two. But largely, in terms of the top line that we are committed to, we would be aligned with our AOQ.

Speaker #4: To add on here, the annual guidance was 30% revenue improvement, and 100% if the improvement remains the same.

Alakh Pandey: To add on here, the annual guidance was 30% revenue improvement and 100% if the improvement remains the same.

Amit Sachdeva: To add on here, the annual guidance was 30% revenue improvement and 100% if the improvement remains the same.

[Analyst] (Axis Capital): Got it. My second question, in terms of, if you could just talk about the outcomes which we are seeing in NEET and JEE and where we are versus where we would like to be. What are we doing to improve those outcomes over a period of time? Thank you.

Gaurav Malhotra: Got it. My second question, in terms of, if you could just talk about the outcomes which we are seeing in NEET and JEE and where we are versus where we would like to be. What are we doing to improve those outcomes over a period of time? Thank you.

Speaker #5: Got it. My second question is, if you could just talk about the outcomes we are seeing in Need and JE, and where we are versus where we would like to be.

Speaker #5: And yeah, so what are we doing to sort of improve those outcomes over a period of time? Thank you.

Speaker #3: Yeah. So, the outcome has never been a challenge in our online category. Online, we have been delivering mega results since the inception, and people are very receptive and appreciative of our online results.

Alakh Pandey: Yeah. The outcome has never been a challenge in our online category. Online, we have been delivering mega results since the inception, and people are very receptive and very appreciative of our online result, the maths result, the maximum number of selection across NEET, JEE or even in UPSC, CA, any examination. We teach maximum number of kids, so we do maximum number of selection. When it comes to offline, then people always compare us with the results of our competitor, without taking any name, I would like to address that. So we are investing towards result in the offline segment, and that is one of the core reasons that we had somehow slowed down the offline growth, working on the unit economics in offline and better results in offline.

Speaker #3: The mass result, the maximum number of selections across NEET, JEE, or even in UPSC, CA, any examination, we teach the maximum number of kids. So we do the maximum number of selections.

Speaker #3: When it comes to offline, people always compare us with the results of our competitor, without taking any names. I would like to address that.

Speaker #3: So, we are investing towards results in the offline segment, and that is one of the core reasons that we have somewhat slowed down the offline growth—working on the unit economics in offline and aiming for better results in offline.

Speaker #3: And that is what we have talked about in the investor roadshow and the previous earnings call as well. That will slow down the offline expansion, not be as aggressive as we were, and focus more on the results. And this year, we are working on the results vertical and investing in that.

Alakh Pandey: And that is what we have talked about in the investor roadshow and the previous earning call as well, that we will slow down the offline expansion, not be that aggressive as we were, and focus more on the results. This year, we are working on the results vertical and investing on that. If you talk about this year results, we delivered the maximum numbers of NEET selections and JEE selections compared to any coaching in India, and we claimed it, and these are verified results. We published it. Yeah, the number of results are superb. Talking about the top results, as we talk about, yeah, we have a couple of ranks in the top 100 this year as well, and we are making our share of top 100 increasing by 5% or 10% year on year, and we are working on that.

Speaker #3: So, if you talk about this year's results, we delivered the maximum number of NEET selections and JEE selections compared to any coaching in India, and we claimed it, and these are verified results—we published it.

Speaker #3: So yeah, the number of results is superb. Talking about the top results, if we talk about it, yeah, we have a couple of ranks in the top 100 this year as well, and we are making our share of top 100 increasing by 5% or 10% year on year, and we are working on that.

Speaker #3: We are investing on that as well. The path is the vision is to become the most result producing the top result producing centers in offline and to beat anyone out there offline is not about affordability for us.

Alakh Pandey: We are investing on that as well. The vision is to become the top result-producing centers in offline and to beat anyone out there. Offline is not about affordability for us, it is about the top results. We are very much into the game and bend on the results. This year only, we produced all India rank one in International Junior Science Olympiad, and we beat anyone out there. Offline is the competition for the top results. Online, we are already winning the results vertical.

Speaker #3: It is about the top results. We are very much into the game and focused on the results. This year only, we produced All India Rank 1 in the International Junior Science Olympiad.

Speaker #3: And we beat anyone out there. So, offline is the competition for the top results. Online, we are already winning the result vertical.

Speaker #5: Great, thank you. This last question, Pradeep—you mentioned this year, like you have been saying previously, that you were sort of going to be doing near break-even for the offline.

[Analyst] (Axis Capital): Good. Thank you. Just last question. Prateek, you mentioned that you have been saying previously that you were sort of going to be doing near breakeven for the offline. How should we think about the online business in terms of margins?

Gaurav Malhotra: Good. Thank you. Just last question. Prateek, you mentioned that you have been saying previously that you were sort of going to be doing near breakeven for the offline. How should we think about the online business in terms of margins?

Speaker #5: How should we think about the online business in terms of margins?

Speaker #4: So, the online business is, if you see the first quarter numbers itself, the revenue is up by 33%. The bottom line, we have improved by almost 600 basis points.

Prateek Maheshwari: The online business is, if you see the Q1 numbers itself, the revenue is up by 33%. The bottom line, we have improved by almost 600 basis points. In terms of online business, we have bucketed the entire business into three buckets, and we have covered this in our section C of our shareholder letter.

Speaker #4: And in terms of online business, we have bucketed the entire business into three buckets. We have covered this in Section B of our Section C of our shareholder letter.

Speaker #4: One is very high-profit categories like JEE, NEET, CA, MBA, Commerce, and Boards. And the other bucket is path-to-higher-profitability categories like GATE, UPSC, State PSCs, Foundation, Government Exams, and a couple of state boards.

[Analyst] (Axis Capital): Okay.

Gaurav Malhotra: Okay.

Prateek Maheshwari: One is very high profitable categories like JEE, NEET, CA, MBA, commerce boards. Another bucket is path to higher profitability categories like GATE, UPSC, State PSCs, foundation, government exams, and a couple of state boards. There is a third segment, which is slightly loss-making categories in terms of NEET PG, Skills, Curious Junior, or vernacular, which we have ventured quite recently. But there is great improvement in terms of NEET PG numbers, Skills numbers, Curious Junior numbers. If you see Curious Junior alone, has shown improvement in 67% enrollments and 150% collections. But still, this year, Curious Junior online business will become breakeven. So overall, online margin are continued to be strong. Vikram will add on the specific numbers here.

Speaker #4: And there's a third segment, which is slightly loss-making categories, in terms of NEET, PG, Skills, Furious Junior, or Vernacular, which we have ventured into quite recently.

Speaker #4: But there is great improvement in terms of NEET, PG numbers, skills numbers, Furious Junior numbers. If you see, Furious Junior alone has shown an improvement of 67% in enrollments and 150% in collections.

Speaker #4: But still, this year, Furious Junior online business will become break-even. So overall, online margins continue to be strong. And Vikram will add on with specific numbers here.

Speaker #3: Sure. So last fiscal year, we witnessed around 27% margins. As Pradeep sir has already mentioned, I think the path to higher profitability in some of these categories—UPSC, GATE, Foundation, and State Boards—we are already seeing that they are approaching higher profitability. And in mature categories like JEE and NEET, margins from here onwards are definitely going to improve.

Vikram Bhardwaj: Sure. Last fiscal year, we witnessed around 27% margins. As Prateek sir already mentioned, I think path to higher profitability, some of these categories, UPSC, GATE, foundation, and state boards, we have already seen that they are approaching towards higher profitability and mature categories like JEE, NEET. So margins from here onwards are definitely going to improve. I think within this fiscal year itself, we are seeing good improvement in terms of our online margins. As and when the NEET PG and vernacular and Curious Junior categories wherein we are consistently investing over the last few quarters, these also start breaking even and contributing towards the EBITDA margins. We should see the overall margin expanding.

Speaker #3: I think within this fiscal year itself, we are seeing good improvement in terms of our online margins. As and when the NEET, PG, and Vernacular and Furious Junior categories—wherein we are consistently investing over the last few quarters—also start breaking even and contributing towards better margins.

Speaker #3: We should see the overall margin expanding. Having said that, the online margin that we have planned within our annual operating plans—we see that we are largely there.

Vikram Bhardwaj: Having said that, the online margin that we have planned within our annual operating plans, we feel that we are largely there, and we feel that we will be able to deliver on whatever we are planning in terms of that.

Speaker #3: And we feel that we’ll be able to deliver on whatever we are planning in terms of.

[Analyst] (Axis Capital): Understood. Just last thing, last question from me. On the offline side, there is obviously a healthy improvement in ARPU, and the ARPU had sort of fallen last year. So is it more Vidyapeeth fees? If you could just give us some sense of what are the interventions which have been taken to sort of reverse this ARPU decline?

Gaurav Malhotra: Understood. Just last thing, last question from me. On the offline side, there is obviously a healthy improvement in ARPU, and the ARPU had sort of fallen last year. So is it more Vidyapeeth fees? If you could just give us some sense of what are the interventions which have been taken to sort of reverse this ARPU decline?

Speaker #5: Understood, understood. Just lastly, on the offline side, there is obviously a healthy improvement in Q4, and Q4 had sort of fallen last year. So, is it more Vidyapeeth or is it—if you could just give us some sense of what are the interventions which have been taken to sort of reverse this Q4 decline?

Speaker #4: So go ahead.

Vikram Bhardwaj: Gaurav, the last year ARPU was largely in line with the mix of the business. What we have consciously, if you look at the first quarter itself, we are up on 7% in terms of our offline ARPU. The last year was largely a mix of shorter-term courses, and obviously the interplay of what we were doing in UC and Vylam, smaller time courses, was the reason for the ARPU place. In terms of our approach towards the fees, like Alex said, our clear path to profitability of a steady state of 13% to 15% will largely come in from an ARPU play and improving the outcomes. Those are the two clear matrices that we are following in offline, with this year cohort getting to near profitability, as we earlier said.

Speaker #3: Last year, R4 was largely in line with the mix of the business. So what we have consciously—if you look at the first quarter itself—we are up 7% in terms of our offline R4.

Speaker #3: The last year was largely a mix of shorter term courses and obviously the interplay of what we were doing in UC and Geilam smaller time courses was the reason for the R4 plates in terms of our approach towards the fees like Alexa said, our clear path to profitability of a steady state of 13 to 15% will largely come in from an R4 plate and improving the outcomes.

Speaker #3: So that's those are the two clear matrices that we are following in offline. With this year cohort getting to near profitability earlier said.

Speaker #5: Understood. Thank you so much.

[Analyst] (Axis Capital): Understood. Thank you so much.

Gaurav Malhotra: Understood. Thank you so much.

Speaker #1: Thank you. Our next question comes from the line of Pradeep Maheshwari with HSBC. Please go ahead.

Operator: Thank you. Our next question comes from the line of Prateek Maheshwari with HSBC. Please go ahead.

Speaker #5: Hi, thanks for the opportunity. So, in terms of disclosures, I was just trying to look for the enrollments between categories, like you guys had earlier provided for JE versus Need versus Foundation.

[Analyst] (HSBC): Hi. Thanks for the opportunity. In terms of disclosures, I was just trying to look for the enrollments between categories, like you guys had earlier provided for JEE versus NEET versus foundation. I remember seeing your previous quarter result that foundation was reaching closer to your largest category, right? Just wanted to understand how much behind would foundation and other category like state and CAT would be in terms of margin versus the flagship category, and when do we see those also, all four of them, kind of hitting the strong margin that you are expecting, right? That's first question, if you can answer.

Prateek Maheshwari: Hi. Thanks for the opportunity. In terms of disclosures, I was just trying to look for the enrollments between categories, like you guys had earlier provided for JEE versus NEET versus foundation. I remember seeing your previous quarter result that foundation was reaching closer to your largest category, right? Just wanted to understand how much behind would foundation and other category like state and CAT would be in terms of margin versus the flagship category, and when do we see those also, all four of them, kind of hitting the strong margin that you are expecting, right? That's first question, if you can answer.

Speaker #5: And I remember seeing your previous quarterly report, that Foundation was reaching closer to your largest category, right? So just wanted to understand how much behind would Foundation and other categories like State and CAT be in terms of margin versus the flagship category.

Speaker #5: And when do we see those—also, all four of them—kind of hitting the strong margin that you are expecting, right? So, that's the first question, if you can answer.

Speaker #4: So see, already the categories which we have mentioned are profitable. But if you talk about specifically Vernacular have 70% up in enrollment, State Board has 100% up in enrollments, Curious Junior which is again part of K12 has shown 67% improvement in enrollments and 150% improvements in collections.

Prateek Maheshwari: So, already the categories which you have mentioned are profitable. But if you talk about specifically, vernacular have 70% up in enrollment. State board has 100% up in enrollments. Curious Junior, which is again part of K12, has shown 67% improvement in enrollments and 150% improvements in connections. Generally, these are hyper-growth categories and steady state margins will take some longer time, and these are some growth vectors for us. In terms of what we have anticipated, we are completely in line with our internal operating plan, and we are confident that we will create a large market in these specific categories. Early tractions remains very strong, and we will continue to show growth on an annualized number. Because of the cyclic nature of the business, we haven't disclosed that specifically in our investor shareholder letter, but we will do that at an annual basis.

Speaker #4: So generally, these are hypergrowth categories, and steady-state margins will take some longer time. These are some growth vectors for us. In terms of what we have anticipated, we are completely in line with our internal operating plan.

Speaker #4: And we are confident that we will create a large market in these specific categories. Early tractions remains very strong. And we will continue to show growth on an annualized number.

Speaker #4: Because of the cyclic nature of the business, we haven't disclosed that specifically in our investor shareholder letter. But we will do that on an annual basis.

Speaker #5: Great. Just to double-check on that—so because Foundation was reaching closer to your Need category in terms of, if I just look at your student enrollment scale—could you just explain what's the difference in the cost structure?

[Analyst] (HSBC): Great. Just to double-click on that, because Foundation is reaching closer to your NEET category in terms of, if I just look at the student enrollment scale, could you just explain what's the difference in the cost structure? Where do you probably need to invest more, between Foundation and NEET? We are just trying to understand how, at what scale probably Foundation will be as profitable as NEET.

Prateek Maheshwari: Great. Just to double-click on that, because Foundation is reaching closer to your NEET category in terms of, if I just look at the student enrollment scale, could you just explain what's the difference in the cost structure? Where do you probably need to invest more, between Foundation and NEET? We are just trying to understand how, at what scale probably Foundation will be as profitable as NEET.

Speaker #5: Where do you probably need to invest more between Foundation and Need? Just trying to we are just trying to understand how at what scale probably Foundation would be as profitable as Need.

Speaker #4: See, the cost structures of Foundation is typically lesser, R4, as compared to the Need, as well as lesser average salary cost of the teacher.

Prateek Maheshwari: See, the cost structures of Foundation is typically lesser ARPU as compared to the NEET, as well as lesser average salary cost of the teacher. But that's very deep market as compared to JEE NEET. So steady state profitability, we anticipate, will be much higher than NEET, but it will take longer time to reach at a steady state. Already, the current margin profile, it's not a big delta between NEET profitability and Foundation profitability, but at steady state it will definitely beat our flagship categories.

Speaker #4: But that's a very deep market as compared to JE. So, steady-state profitability, we anticipate, will be much higher than JE. But it will take a longer time to reach steady state.

Speaker #4: Already, the current margin profile is—it’s not a big delta between NEET profitability and Foundation profitability. But in steady state, it will definitely beat our flagship categories.

Speaker #5: Okay. And the second question was on your offline business. Last year, we remember there was intensive competition between your peers, right? So could you just mention how it is this year?

[Analyst] (HSBC): Okay. And the second question was on your offline business. Last year, we remember there was intensive competition between your peers, right? Could you just mention how it is this year? Are you guys seeing similar levels of aggressiveness, or if it has moderated a little bit this year?

Prateek Maheshwari: Okay. And the second question was on your offline business. Last year, we remember there was intensive competition between your peers, right? Could you just mention how it is this year? Are you guys seeing similar levels of aggressiveness, or if it has moderated a little bit this year?

Speaker #5: Are you guys seeing similar levels of aggressiveness, or has it moderated a little bit this year?

Speaker #4: Yeah. So we are continuing to show R4 improvement in our Vidyapeet which is 70% of our offline business. And we have already demonstrated 7% R4 improvement.

Prateek Maheshwari: Yeah. We are continuing to show ARPU improvement in our Vidyapeeth, which is 70% of our offline business, and we have already demonstrated 7% ARPU improvement. That shows that despite the intensified competition, we are continued to show the higher ARPU in our offline business and where our competitors' ARPU is almost flat or shrinking. That is one testimony of a great experience which we have created in offline. With better and better results, we could able to increase the ARPU, and we have taken a conscious call that our offline business is not a affordable business. We intend to become number one in terms of ARPU, in terms of results, in terms of all the matrices in our offline business. The entire focus is to control bottom line and improve experience, and we are committed to achieve near profitability of our blended offline business.

Speaker #4: That shows that, despite the intensified competition, we have continued to show higher R4 in our offline business, whereas our competitors' R4 is almost flat or shrinking.

Speaker #4: So that is one testimony of a great experience which we have created in offline. And with better and better results, we were able to increase the R4, and we have taken a conscious call that our offline business is not an affordable business.

Speaker #4: We intend to become number one in terms of R4, in terms of results, in terms of all the matrices in our offline business. The entire focus is to control the bottom line and improve experience, and we are committed to achieve this.

Speaker #4: We are seeing profitability in our blended offline business.

Speaker #5: Right. And so in your Vidyapeeth category centers, right, how should we think about the utilization? At the current scale of centers, right, where are we on the utilization, and how much could it improve?

[Analyst] (HSBC): Right. In your Vidyapeeth category centers, how should we think about the utilization? At the current scale of centers, where are we on the utilization and how much could it improve? If you could explain this.

Prateek Maheshwari: Right. In your Vidyapeeth category centers, how should we think about the utilization? At the current scale of centers, where are we on the utilization and how much could it improve? If you could explain this.

Speaker #5: If you could explain this.

Speaker #4: So we track student teacher ratio and overall seat utilization. The total number of the seats total number of students divided by total number of seats.

Prateek Maheshwari: We track student-teacher ratio and overall seat utilization. The total number of students divided by total number of seats. On an annual basis, historically, we have demonstrated seat utilization metric going from 1.77 to 1.99, and with on an average 5% to 7% improvement every year in terms of overall utilization. This number will have slightly more improvement in future, while we not expand as aggressively as we have expanded in the past. Along with that, it is not just the seat utilization which drives the overall profitability of offline. Other matrices are non-academic to academic ratio. Overall Vidyapeeth is becoming more academic in nature. There are a lot of central level cost optimization, lots of automation reach we are driving, lot of fresher faculty pruning, fresher faculties which we are hiring and training, and that ratio also we are increasing.

Speaker #4: And on an annual basis, we try to—so, historically, we have demonstrated seat utilization metric going from 1.77 to 1.99, with an average 5% to 7% improvement every year in terms of overall utilization.

Speaker #4: This number will have slightly more improvement in the future, while we will not expand as aggressively as we have expanded in the past. Along with that, it's not just the seat utilization which drives the overall profitability of offline.

Speaker #4: It's another matrices are non-academic to academic ratio. Overall Vidyapeet is becoming more academic in nature. And there are a lot of central level cost optimization, a lot of automation reach we are driving, a lot of fresher faculty faculties which we are hiring and training and that ratio is also we are increasing.

Speaker #4: And student teacher ratio which used to be in 80s will become higher this year. So and all these parameters are combining driving a bottom line growth.

Prateek Maheshwari: Student-teacher ratio, which used to be in 80s, will become higher this year. All these parameters are combining, driving a bottom-line growth.

[Analyst] (HSBC): Thank you so much, and all the best.

Prateek Maheshwari: Thank you so much, and all the best.

Speaker #5: much. And all the best.

Speaker #4: Thank you.

Prateek Maheshwari: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Swapnill with JM Financial. Please go ahead.

Operator: Thank you. Our next question comes from the line of Swapnil with JM Financial. Please go ahead.

Speaker #5: Hi, thanks for the opportunity. My first question is regarding your cash position. It seems that, on a quarter-to-quarter basis, your cash position has increased by ₹600 crore.

[Analyst] (JM Financial): Hi. Thanks for the opportunity. My first question is in your cash position. It seems on a quarter-to-quarter basis, your cash position has gone up by INR 600 crores. Can you just explain us what has happened over there?

Swapnil Potdukhe: Hi. Thanks for the opportunity. My first question is in your cash position. It seems on a quarter-to-quarter basis, your cash position has gone up by INR 600 crores. Can you just explain us what has happened over there?

Speaker #5: Can you just explain to us what has happened over there?

Speaker #4: Again, this is a cyclic nature of business, where it's a negative working capital cycle business—where the student pays the fees upfront, and that remains in our treasury.

Prateek Maheshwari: Again, this is a cyclic nature of business where it is a negative working capital cycle business, where student pays the fees upfront, and that remains in our treasury. That is one primary reason that specifically Q1, if you compare the cash position from the last year, from last quarter to this quarter, it improved by 600 odd crores. This is a cyclicity which will happen every year from Q4 to Q1.

Speaker #4: So that is one primary reason that quarter, specifically Q1. If you compare the cash position from last year, it has improved by ₹600 crore. From last quarter to this quarter, it has improved by about ₹600 crore.

Speaker #4: And this is a cyclicity which will happen every year. From quarter four to quarter one. Yeah.

[Analyst] (JM Financial): This is basically the collections that you generate, right?

Swapnil Potdukhe: This is basically the collections that you generate, right?

Speaker #5: This is basically the collections that you generate, right?

Speaker #4: Yes, yes, yes. So on the nature of the online businesses, it's like R4 of 4,000 rupees. So it's a one-shot payment by the students.

Prateek Maheshwari: Yes. On the nature of the online businesses, it is like ARPU of INR 4,000. It is a one-shot payment by the students. They pay the upfront fees for the entire year. That is the primary nature of the business itself.

Speaker #4: So, they pay the upfront fees for the entire year. That is the primary nature of the business itself.

Speaker #5: Right. And the second question is with respect to some of the new initiatives you talked about: PW Books and a bunch of AI-driven initiatives.

[Analyst] (JM Financial): Right. The second question is with respect to some of the new initiatives that you talked about, PW Books and a bunch of AI-driven initiatives. Where do you report these new initiatives? I mean, between the three segments that you are reporting right now.

Swapnil Potdukhe: Right. The second question is with respect to some of the new initiatives that you talked about, PW Books and a bunch of AI-driven initiatives. Where do you report these new initiatives? I mean, between the three segments that you are reporting right now.

Speaker #5: Where do you report these new initiatives? I mean, between the three segments that you are reporting right now.

Speaker #4: So the first reporting happens on YouTube. If you want to take a close track, you will find a lot launching these new initiatives on YouTube every now and then.

Prateek Maheshwari: The first reporting happens on YouTube. If you want to take a close track, you will find Alakh Pandey launching these new initiatives on YouTube every now and then. But as a company, we report these initiatives a little later on our shareholder letter. Once a new initiative gets launched among the students and is being used by 100,000 paid students, then generally we try to report in our shareholder letters. For example, our initiative of PW Books, which we have reported this year, the team has been working from one and a half year. That actual launch of that application happened one and a half year back. The current Play Store rating is 4.7, and there are 2.2 million downloads. Specifically, digital books has been launched almost two, three months back by Alakh Pandey on the internet.

Speaker #4: But as a company, we report these initiatives a little later in our shareholder letter—once a new initiative gets launched among the students and it's being used by 100,000 students, 100,000 paid students.

Speaker #4: Then generally, we try to report in our shareholder letters. For example, an initiative of books which we have reported this year—the team has been working on it for one and a half years. The actual launch of that application happened one and a half years back.

Speaker #4: And the current Play Store rating is 4.7, and there are 2.2 million downloads. And specifically, digital books have been launched almost two, three months back by a lot on the Internet.

Speaker #4: So this is how and specifically for any new initiative, in education, you have to take a pilot of one and a half year to assess the learning outcomes, to assess the engagement levels and retention level of the kids.

Prateek Maheshwari: Specifically for any new initiative in education, you have to take a pilot of one and a half year to assess the learning outcome, to assess the engagement levels and retention level of the kids. It is a slightly longer life cycle, but there are a couple of new launches also happening in terms of AI, like as I mentioned, the AI tutor, AI companion. Since we have already seen success in AI-powered digital books, we will be launching these initiatives in this financial year.

Speaker #4: So it's slightly longer life cycle. But there are a couple of new launches also happening. In terms of AI, as I mentioned, the AI tutor, AI companion.

Speaker #4: Since we have already covered since we have already seen success in AI-powered digital books, we will be launching these initiatives in this financial year too.

Speaker #5: Actually, my question was how do you report the revenue in which segments or the cost associated? Yeah.

[Analyst] (JM Financial): Actually, my question was, how do you report the revenue, in which segments or the costs associated?

Swapnil Potdukhe: Actually, my question was, how do you report the revenue, in which segments or the costs associated?

Speaker #4: Sure. So, for example, digital books are completely online, so we report them in our online business. Pi is another online, Talk is another online. And if the nature of the new initiative is not online, then we generally report it in the 'others' category.

Prateek Maheshwari: For example, digital book is completely online, so we report in our online business. Pi is another online, PW Talk is another online. If the nature of the new initiative is not online, then we generally report in others category.

Speaker #5: Okay. And have you changed the segment reporting a bit? Because it seems your Q1 FY26 numbers have been restated. Is there any change in the reporting of revenues?

[Analyst] (JM Financial): Okay. Have you changed the segment reporting a bit because it seems your Q1 FY26 numbers have been restated. Is there any change in the reporting of revenues?

Swapnil Potdukhe: Okay. Have you changed the segment reporting a bit because it seems your Q1 FY26 numbers have been restated. Is there any change in the reporting of revenues?

Speaker #4: Correct. That is correct. So, I think there were some changes that we had discussed in terms of the allocation done earlier to now. Like you said, this is the first quarter we are reporting segment reporting.

Amit Sachdeva: Correct. That is correct. I think there were some changes that we had discussed in terms of the allocation done earlier to now. Like we said, this is the first quarter we are reporting segment reporting. I think it will be nuanced after discussions with the auditors. But you will see a little bit of change largely towards the accounting of our B2B revenues and couple of our others revenue that was earlier treated under the others category.

Speaker #4: So I think it'll be nuanced after discussions with the auditors. But you will see a little bit of change, largely towards the accounting of our B2B revenues, and a couple of our other revenues that were earlier treated under the 'others' category.

Speaker #5: Got it. And just the last one, it seems that some partial centers have come down on a quarter-to-quarter basis. If I remember correctly, you had 84 centers in partial at the end of March.

[Analyst] (JM Financial): Got it. Just a last one. There seem to be some Pathshala centers have come down on a quarter-to-quarter basis. If I remember correctly, you had 84 centers in Pathshala at the end of March. Now you have reported 70. Have you closed down these centers, or these are you report only the active centers? I mean, what is happening there?

Swapnil Potdukhe: Got it. Just a last one. There seem to be some Pathshala centers have come down on a quarter-to-quarter basis. If I remember correctly, you had 84 centers in Pathshala at the end of March. Now you have reported 70. Have you closed down these centers, or these are you report only the active centers? I mean, what is happening there?

Speaker #5: Now you have reported 70. Have you closed down these centers, or are you reporting only the active centers? I mean, just what is happening there?

Speaker #4: Yeah, great observation. Thanks for calling it out. I think the trajectory of a mature partial eventually becomes where we see the extraction becomes a Vidya peak.

Amit Sachdeva: Yeah. Great observation. Thanks for calling it out. I think the trajectory of a mature Pathshala eventually becomes where we see the instruction becomes a Vidyapeeth. Technically what happens is once you create a certain size and scale into a Pathshala, that becomes our bigger Vidyapeeth because we feel we can actually turn that center into a much larger Vidyapeeth center, and we technically do not close any centers.

Speaker #4: So technically, what happens is once you create a certain size and scale into a partial, that becomes our bigger Vidya Peak, because we feel we can actually turn that center into a much larger Vidya Peak Center. And we technically do not close any centers.

Speaker #5: So, these are partials that have been closed.

Prateek Maheshwari: Zero Pathshala has been closed. Actually, those Pathshalas were converted into Vidyapeeth.

Speaker #4: Yes.

Speaker #5: Actually, those partials were converted into Vidya Peak. Got it. Very clear. Thanks a lot for the opportunity, and all the best, guys.

[Analyst] (JM Financial): Got it. Very clear. Thanks a lot for the opportunity and all the best guys.

Swapnil Potdukhe: Got it. Very clear. Thanks a lot for the opportunity and all the best guys.

Speaker #4: Thanks. Okay.

Prateek Maheshwari: Thanks.

Speaker #2: Thank you. Our next question comes from the line of Ritwik Agrawal with 3P Investment Managers. Please go ahead.

Operator: Thank you. Our next question comes from the line of Ritwik Agrawal with 3P Investment Managers. Please go ahead.

Ritwik Agrawal: Okay. Hi. I have two questions. My first question is, in terms of enrollments versus Q1 FY26, I do not see a strong growth even after considering 1 lakh to 2 lakh improvement in terms of NEET enrollments. There is only a 5% to 10% growth. Is that right observation?

Ritvik Agrawal: Okay. Hi. I have two questions. My first question is, in terms of enrollments versus Q1 FY26, I do not see a strong growth even after considering 1 lakh to 2 lakh improvement in terms of NEET enrollments. There is only a 5% to 10% growth. Is that right observation?

Speaker #3: Okay, hi. I have two questions. My first question is, in terms of enrollment versus Q1 FY26, I don't see strong growth, even after considering a lack of 2 lakh improvement in terms of new enrollments.

Speaker #3: There's only a 5 to 10 percent growth. Is that the right observation?

Speaker #4: Yeah, the observation is right, but the new enrollments have shifted from Q1 to Q2. And there has been a deep decline in terms of government exam notifications.

Prateek Maheshwari: The observation is right, but the NEET enrollments have shifted from Q1 to Q2. There is a big decline in terms of government exam notifications. Because of that, one of our subsidiary, which is Utkarsh Classes, have significant 800 key enrollments overall delta. If you see, the nature of the government examination notification is very cyclic, and you would see some of the spikes in upcoming years in terms of enrollments. Overall level, if you see Physicswallah itself, we have shown 8% to 9% improvement in enrollment in Q1 alone. Net-net level, we haven't anticipated any major delta because of this enrollment. It is just a cyclic nature which is getting shifted from one quarter to another.

Prateek Maheshwari: The observation is right, but the NEET enrollments have shifted from Q1 to Q2. There is a big decline in terms of government exam notifications. Because of that, one of our subsidiary, which is Utkarsh Classes, have significant 800 key enrollments overall delta. If you see, the nature of the government examination notification is very cyclic, and you would see some of the spikes in upcoming years in terms of enrollments. Overall level, if you see PhysicsWallah itself, we have shown 8% to 9% improvement in enrollment in Q1 alone. Net-net level, we haven't anticipated any major delta because of this enrollment. It is just a cyclic nature which is getting shifted from one quarter to another.

Speaker #4: And because of that, one of our subsidiaries, Y, which is Utkarsh, has a significant 800,000 enrollments overall delta. Which is so, but if you see, the nature of the government examination notification is very cyclic.

Speaker #4: And you would see some of the spikes in upcoming years in terms of enrollments. But overall, if you see PW itself, we have shown an 8 to 9 percent improvement in enrollment in Q1 alone.

Speaker #4: So, net-net level, we haven't anticipated any major delta because of this enrollment. It is just a cyclic nature which is getting shifted from one quarter to another.

Speaker #3: I think Ritwik, one more thing. How we should probably look at it is the H1 numbers consolidated because I think the change in the admission cycle of need plus new notifications that we are anticipating what we believe is the right number eventually the proxy of that will be the revenue like we can talked earlier.

Amit Sachdeva: I think, Ritwik, one more thing, how we should probably look at it is the H1 numbers consolidated, because I think the change in the admission cycle of NEET, plus new notifications that we are anticipating, what we believe is the right number. Eventually, the proxy of that will be the revenue, like Vikram talked earlier. The fact that when you actually look at year-to-date number, that will give a better proxy when we look at the overall picture, both in terms of Physicswallah as well as all subsidiaries put together.

Speaker #3: And the fact that when you actually look at year-to-date number, that will give a better proxy when we look at the overall picture both in terms of PW as well as all subsidies put together.

Speaker #4: Understood. And the

Prateek Maheshwari: Understood.

Speaker #3: The second question was on offline centers. We have added approximately 63 offline centers, but the enrollment there has not improved a lot. So, is this again because of need?

Ritwik Agrawal: The second question was on offline centers. We have added approximately 63 offline centers, but the enrollment seem has not improved a lot over there. Is this again because of NEET?

Ritvik Agrawal: The second question was on offline centers. We have added approximately 63 offline centers, but the enrollment seem has not improved a lot over there. Is this again because of NEET?

Speaker #4: Yeah, so that is primarily because of need, because the majority of our offline business is GE lead business. And because of the re-examination, students took a longer decision time to join our offline center.

Prateek Maheshwari: Yes. That is primarily because of NEET, because majority of our business, offline business, is JEE business. Because of the reexamination, a student took a longer decision time to join our offline center. There is 1 and a half months delay in terms of reexamination and then re-result. That is primarily because of NEET only.

Speaker #4: So, there is one and a half months' delay in terms of re-examination and then re-result. So, that is primarily because of need only.

Speaker #3: And one final question. Do you guys also report collections or collection growth on a yearly basis? I think the right process is to look at the right proxy for that, which is our contractual liabilities on the liability side of the balance sheet.

Ritwik Agrawal: And one final question. Do you guys also report collection growth on a year-on-year basis?

Ritvik Agrawal: And one final question. Do you guys also report collection growth on a year-on-year basis?

Prateek Maheshwari: No.

Amit Sachdeva: I think the right proxy to look at it is our contractual liabilities on the liability side in the balance sheet. A good reflection of that you can see, because collections is, like on a business, is more relevant metric for online and not the offline business. That is the reason online is reported at an AT2 level, and offline is actually reported in R2 level, which is a full year metric, the right parameter for the offline business.

Speaker #3: A good reflection of that you can see, because collections is, like, on a business, a more relevant metric for online and not the offline business.

Speaker #3: That's the reason online is reported at an active level, and offline is actually reported at the R2 level, which is a full-year metric—right?—for the right parameter for the offline business.

Speaker #3: Understood. Okay.

Ritwik Agrawal: Understood. Okay. Good. Thank you.

Ritvik Agrawal: Understood. Okay. Good. Thank you.

Speaker #2: Thank you. Our next question comes from the line of Rajdeep with Earth Niti Capital. Please go ahead.

Operator: Thank you. Our next question comes from the line of Rajdeep with Arth Nidhi Limited. Please go ahead.

Speaker #4: Yeah. Hi everyone. Thank you for giving me this opportunity. I have two questions. In my first question, I want you to explain broadly what you exactly do in school integrated programs, and what regions are you covering?

[Analyst] (Arth Nidhi): Yeah. Hi, everyone. Thank you for giving me this opportunity. I have two questions. In my first question, I want you to explain broadly what you exactly do in school integrated programs, and what all regions are you covering?

[Analyst] (ArthNidhi Capital): Yeah. Hi, everyone. Thank you for giving me this opportunity. I have two questions. In my first question, I want you to explain broadly what you exactly do in school integrated programs, and what all regions are you covering?

Prateek Maheshwari: School integrated program is a pan-India program in which we do partnership with existing schools and send our Vidyapeeth faculty, so that students can prepare then and there within the schools. That partnership number grew from 15 schools to more than 50 schools last year. Overall, it is a great program for students to save time and focus, and time in terms of going to school as well as preparing for. It is a completely asset-light model, in which we take some guarantee from school as well in terms of number of students' admission.

Speaker #4: The School Integrated Program is a pan-India initiative in which we partner with existing schools and send our Vidya Peak faculties, so that students can prepare then and there within the schools.

Speaker #4: And that partnership number is from 15 schools to more than 50 schools last year. And overall, it is a great program for students to save time.

Speaker #4: And focus and time in terms of going to school as well as preparing for it. It's a completely asset-light model in which we take some guarantee from the school as well, in terms of number of students' admissions as well.

Speaker #3: Okay. Hi. So, in my second question, I would like to ask you: How large is the K-12 market, and who are your key competitors in this segment?

[Analyst] (Arth Nidhi): Okay. Hi. In the second question, I would like to ask you how large is the K12 market, and who are your key competitors in this segment?

[Analyst] (ArthNidhi Capital): Okay. Hi. In the second question, I would like to ask you how large is the K12 market, and who are your key competitors in this segment?

Speaker #4: So, in the K-12 market, there is no significant competition as such. We are a category creator and a small market leader at this point in time.

Prateek Maheshwari: K12 market, there is no significant competition as such. We are a category creator and a small market leader at this point of time. If you see the overall market size, the K12 market is 250 million students all across categories put together. But the addressable market is the market of online tuitions, which we are covering through Qrius Junior. A great TAM market is state board, which we are covering from our various state board initiatives. We have doubled down in terms of our number of state boards, which we operate from seven to 14 now. We are forming regional teams and regional teachers and regional YTD distributions to cater to that demand of the students.

Speaker #4: But if you see the overall market size, the K-12 market is 250 million students across all categories put together. But the addressable market is the market of online tuitions, which we are covering through QJ Junior.

Speaker #4: A great TAM market is state board, which we are covering through our various state board initiatives. We have doubled down in terms of the number of state boards where we operate, from 7 to 14 now.

Speaker #4: And we are forming regional teams, and regional teachers, and regional YouTube distributions to cater to that demand of the students. And in a way, it's a great, great LTV business because if we grab them early and do the value addition at an early stage, they become the lifelong learning partner to us.

Prateek Maheshwari: And in a way, it is a great LTV business, because if we grab them early and do the value addition at early stage, they become the lifelong learning partner to us.

Speaker #3: Okay. Thank you.

[Analyst] (Arth Nidhi): Okay. Thank you.

[Analyst] (ArthNidhi Capital): Okay. Thank you.

Speaker #2: Thank you. Our next question comes from the line of Gaurav with Access Capital. Please go ahead.

Operator: Thank you. Our next question comes from the line of Gaurav with Axis Capital. Please go ahead.

Speaker #3: Yeah, hi. Thanks—thanks for the opportunity again. Just a few sort of follow-up questions. First of all, in terms of—you mentioned we should look at it on a YTD basis because you need sort of got pushed out.

[Analyst] (Axis Capital): Yeah. Hi. Thanks for the opportunity again. Just a few sort of follow-up questions. First of all, in terms of, you mentioned we should look at it on a YTD basis because NEET sort of got pushed out. So can you give us some sense on what is the YTD sort of enrollment number for online, offline or anything else you could sort of tell us?

Gaurav Malhotra: Yeah. Hi. Thanks for the opportunity again. Just a few sort of follow-up questions. First of all, in terms of, you mentioned we should look at it on a YTD basis because NEET sort of got pushed out. So can you give us some sense on what is the YTD sort of enrollment number for online, offline or anything else you could sort of tell us?

Speaker #3: So, can you give us some sense on what the YTD sort of enrollment number is for online, offline, or anything else you could sort of tell us?

Speaker #4: See, in terms of YTD revenue guidance, we are aligned with the 30% improvement in revenue. In terms of enrollment guidance, we are not specifically guiding for any number at this point in time.

Prateek Maheshwari: See, in terms of YTD revenue guidance, we are aligned with the 30% improvement in revenue. In terms of enrollment guidance, we are not specifically guiding for any number at this point of time. More or less revenue guidance, we are quite intact and as well as in the guidance.

Speaker #4: But more or less, revenue guidance—we are quite intact, as well as in the guidance.

Speaker #3: Understood. And secondly, in terms of the centers which opened in '23, '24, can you give us what would be the margin levers for these centers?

[Analyst] (Axis Capital): Understood. Secondly, in terms of the centers which opened in 2023, 2024, can you give us what would be the margin levers for these centers?

Gaurav Malhotra: Understood. Secondly, in terms of the centers which opened in 2023, 2024, can you give us what would be the margin levers for these centers?

Speaker #4: Okay. So the steady-state margin is 13 to 15 percent, which we are delivering in our 2023–24 centers. Just calling out Kota center here because the Kota center—Kota specifically, the city—has declined in terms of student inflow.

Prateek Maheshwari: The steady state margin is 13% to 15%, which we are delivering in our 2023, 2024 centers. Just calling out Kota center here, because the Kota center, Kota specifically city has declined in terms of student inflow, but remaining all the centers are now delivering 13% to 15% margin profile at this point of time.

Speaker #4: But all the remaining centers are now delivering a 13 to 15 percent margin profile at this point in time.

Speaker #3: No, actually, I meant what would be the margin. So you're saying the other centers are sort of at your— I just wanted to check, what would be the margin levers for some of the newer centers?

[Analyst] (Axis Capital): No, actually, I meant what would be the margin. So you are saying the other centers are sort of at your I just wanted to check what would be the margin levers for some of the newer centers. Sorry if I did not come across clearly.

Gaurav Malhotra: No, actually, I meant what would be the margin. So you are saying the other centers are sort of at your I just wanted to check what would be the margin levers for some of the newer centers. Sorry if I did not come across clearly.

Speaker #3: Sorry if I didn't come across clearly.

Speaker #4: Actually, it's a very interesting question. The margin lever for a couple of our early centers is we are thinking of a hybrid course, where the students need to come to the center only twice a week.

Prateek Maheshwari: Actually, it's a very interesting question. The margin lever for our couple of our early centers is we are thinking of a hybrid course, where the students need to come to the center only twice a week. That can improve further our student-teacher ratio as well as overall capacity utilization. But still, that is again, under the umbrella of our couple of new initiatives. But already we are delivering 13% to 15% margin profile, and we are continuously working on city level results and center level results. Once we have the majority over the city results, we can increase the ARPU. ARPU becomes a good growth lever for future in Vidyapeeth.

Speaker #4: So that can further improve our student-teacher ratio, as well as overall capacity utilization. But still, that is, again, under the umbrella of a couple of our new initiatives.

Speaker #4: But already we are delivering a 13 to 15 percent margin profile. And we are continuously working on city-level results and center-level results. Once we have the majority over the city results, we can increase the R2.

Speaker #4: So, R2 becomes a good growth lever for the future in Vidya Peak.

Speaker #3: Understood. In this last thing, if you can please we request you to please return the Q if you have any further questions. Thank you.

[Analyst] (Axis Capital): Understood. Just last thing-

Gaurav Malhotra: Understood. Just last thing-

Vikram Bhardwaj: Sorry, Gaurav, we request you to please repeat-

Vikram Bhardwaj: Yeah, sure.

Vikram Bhardwaj: if you have any further questions. Thank you. Our next question comes from the line of Dev Manish Shah with DAM Capital Advisors. Please go ahead.

Speaker #2: Our next question comes from the line of Dave Manish Shah with DAM Capital Advisors.

Speaker #3: Hi. Thank you for this opportunity. I have two questions. One is on the offline piece. Our other centers, what kind of drag—I mean, where is that portfolio currently, and what kind of drag is it contributing to the overall offline piece?

Dev Manish Shah: Hi. Thank you for this opportunity. I have two questions. One is in the offline piece. Our other centers, where is that portfolio currently, and what kind of drag is it contributing to the overall offline piece? Another one is in the last quarter, we had mentioned that around 60% of the 140 odd Vidyapeeth centers were profitable. Where does it stand right now? I think can we call out the percentage number as to how much is profitable at present?

Vikram Bhardwaj: Hi. Thank you for this opportunity. I have two questions. One is in the offline piece. Our other centers, where is that portfolio currently, and what kind of drag is it contributing to the overall offline piece? Another one is in the last quarter, we had mentioned that around 60% of the 140 odd Vidyapeeth centers were profitable. Where does it stand right now? I think can we call out the percentage number as to how much is profitable at present?

Speaker #3: And another one is, in the last quarter, we had mentioned that around 60% of the 140-odd Vidya Peeth centers were profitable. Where does it stand right now?

Speaker #3: I think—can we call out the percentage number as to how much is profitable at present?

Speaker #4: Yeah, good question. So first, I will address the drag thing. So, drag in offline is coming from a couple of the new categories which we have entered into the offline business in the past two years.

Prateek Maheshwari: Yeah. Good question. First I will address the drag thing. Drag in offline is coming from couple of the new categories which we have entered into offline business in past 2 years. Drag is coming from UPSC, government exams, CA as a category. In terms of overall profitability, Vidyapeeth is delivering better as compared to the overall average number, and both in terms of ARPU growth as well as bottom line growth. In terms of profitability of

Speaker #4: Drag is coming from UPSC, government exams, and CA as a category. In terms of overall profitability, VidyaPeak is delivering better as compared to the overall average number.

Speaker #4: And both in terms of R2 growth as well as bottom-line growth, and in terms of profitability as well.

Vikram Bhardwaj: offline centers, I think we had last time shared it across at the end of Q4 because we had the overall annual view at the end of FY26. I think we want to maintain that cadence and mention it at the end of FY27, given that we have a full year profitability view only once we are through all the four quarters. Looking at it at a Q1 level wouldn't make a lot of sense, and hence, we sort of avoid to share across that data. But we'll be able and happy to revisit this, at the end of FY27.

Speaker #3: Offline centers. I think we had last time shared it across at the end of Q4, because we had the overall annual view at the end of February 26.

Speaker #3: I think we want to maintain that cadence and mention it at the end of February 27, given that we have a full year's profitability view only once we are through all the four quarters.

Speaker #3: Looking at it at a human level wouldn't make a lot of sense, and hence, we sort of avoid sharing that data across. But we'll be happy to revisit this at the end of FY27.

Speaker #4: Sure. Is it possible to call out the adjusted EBITDA percentage for the other centers?

Dev Manish Shah: Sure. But is it possible to call out the percentage, the adjusted EBITDA percentage of the other centers?

Vikram Bhardwaj: Sure. But is it possible to call out the percentage, the adjusted EBITDA percentage of the other centers?

Speaker #3: I think the profitability metric for the offline centers would, at a center level, make sense at the end of the fiscal year. So we would be able to share that data once the year ends.

Vikram Bhardwaj: I think the profitability metric for the offline centers would, at a center level, would make sense at the end of the fiscal year. So we would be able to share across that data point once the year ends.

Speaker #4: The point taken. At an annual level, we would like to give the cohort-level profitability of Vidya Peak, and overall offline business.

Prateek Maheshwari: Point taken. At annual level, we would like to give the cohort level profitability of Vidyapeeth, and overall offline business.

Speaker #3: Sure. Thank you.

Dev Manish Shah: Sure. Thank you.

Prateek Maheshwari: Sure. Thank you.

Speaker #2: Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to management for closing comments.

Vikram Bhardwaj: Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.

Speaker #2: Over to you, gentlemen.

Speaker #1: Yeah. Thank you, everyone, and thank you all for attending the call. And thank you to all the team members for preparing us for this call and coming here.

Alakh Pandey: Yeah. Thank you, everyone. Thank you everyone for attending the call, and thank you all the team members for preparing us for this call and coming here. On the piece of the overall question, I could guess lot of questions were forward-looking, and we really avoided the forward-looking questions, and the annual numbers will better make sense. On the question of the offline profitability, I would just like to say, in terms of offline profitability, we are improving like anything year on year in offline profitability, whether it is Vidyapeeth or the overall offline region is considered. Thank you so much for attending this call. We will be teaching whole India. Happy Independence Day, everyone.

Speaker #1: On that part of the overall question, I could guess a lot of questions were forward-looking, and we really avoided those forward-looking questions. The annual numbers will better make sense.

Speaker #1: On the question of the offline profitability, I would just like to say that in terms of offline profitability, we are improving like anything year on year in offline profitability, whether it's Vidya peak or the overall offline region is considered.

Speaker #1: Thank you so much for attending this call. We will be teaching all of India. Happy Independence Day, everyone.

Speaker #3: Thank you.

Speaker #4: Thank you. Thank you.

Prateek Maheshwari: Thank you.

[Analyst] (Axis Capital): Thank you.

Gaurav Malhotra: Thank you.

Alakh Pandey: Thank you.

Vikram Bhardwaj: Thank you. On behalf of Physicswallah Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.

Vikram Bhardwaj: Thank you. On behalf of PhysicsWallah Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.

Browse all earnings call transcripts

Q1 2027 Physicswallah Ltd Earnings Call

Request TrialDemo

Physicswallah

Earnings