Archive · 31 Aug 2026
After Byju’s, Indian edtech shifts toward sustainable growth
Edtech companies teach students using technology and the internet.
After the rapid growth and troubles of Byju’s, many companies are changing how they operate.
They are spending less money simply to attract more students.
Instead, they are trying to earn more from each learner and offer several services.
Some online education companies are opening physical learning centres.
Others are adding degree programs, business training, certifications or study-abroad services.
Investors now care more about profits and sustainable cash flow than enrolment numbers alone.
Artificial intelligence is helping companies automate work and create new products.
The new edtech market may grow more slowly, but it could be more financially stable.
Edtech companies are moving away from enrolment-led expansion and heavy customer-acquisition spending.
PhysicsWallah’s FY26 operating revenue rose 35% to Rs 3,900 crore, while its net loss fell 90% to Rs 24 crore.
LEAD Group increased FY26 revenue 10% to Rs 387 crore and raised Ebitda about sevenfold to Rs 30 crore.
upGrad’s FY26 net loss fell 52% to Rs 130 crore, while Ebitda increased eightfold to Rs 123 crore.
Companies are combining online learning with physical centres, partnerships, certifications and other revenue streams to improve profitability.
- Who
- Edtech companies including PhysicsWallah, LEAD Group, upGrad, Leap and Imarticus Learning, alongside their investors and customers.
- What
- The sector is shifting from funding-driven expansion toward profitability, higher revenue per learner and multiple revenue streams.
- When
- The changes are described through FY25, FY26 and the first quarter of FY27 results.
- Why
- The funding-led boom and bust associated with Byju’s, along with investors’ increased focus on profitability, unit economics and sustainable cash flows, have pushed companies to change strategy.
Scale-first expansion
Sustainable growth
Business priority
Scale-first expansion
The earlier edtech model emphasised rapid enrolment and revenue growth, supported by heavy customer-acquisition spending.
Sustainable growth
Companies are now prioritising profitability, unit economics, sustainable cash flow and higher revenue per learner.
Customer strategy
Scale-first expansion
Companies often competed for the same students and treated online education as a standalone business.
Sustainable growth
Companies are combining digital learning with physical centres, partnerships, degrees, certifications and other offerings around the same customer.
Market outlook
Scale-first expansion
The funding-led boom created fast expansion but was followed by a bust associated with the Byju’s era.
Sustainable growth
The post-Byju’s market may be less spectacular but could be more sustainable through deeper customer relationships and multiple revenue streams.
- PhysicsWallah FY26 revenue
- Revenue from operations rose 35% year-on-year to Rs 3,900 crore.
- PhysicsWallah FY26 loss
- Net loss declined 90% to Rs 24 crore from Rs 243 crore.
- PhysicsWallah physical expansion
- The company added 155 offline centres, taking its total to 353, with enrolments exceeding 0.47 million.
- LEAD Group FY26 performance
- Revenue grew 10% to Rs 387 crore, while Ebitda rose to about Rs 30 crore.
- upGrad FY26 performance
- Net loss fell 52% to Rs 130 crore, while Ebitda reached Rs 123 crore.
- Imarticus Learning FY25 performance
- Revenue rose 16% to around Rs 205 crore, while Ebitda doubled to about Rs 14 crore.