PhysicsWallah Sets IPO Price Band, Targets $3.5 Billion Valuation

“Offline centres are capex-heavy initially, but the economics are strong once a centre stabilises. Most centres break even within 12–18 months and then start generating healthy margins. The centres we launched in FY24 and FY25 are already profitable. Steady-state margins for offline settle around 15–18%, and that forms a very strong compounding base as the network grows. We have also seen clear operational leverage. Payroll expenditure as a share of revenue has come down from 59% to 52%, and this efficiency continues as scale increases. Average realisation per user (Apru) in offline naturally tends to be higher because structured classroom guidance adds value. Over the next decade, this model has the potential to compound consistently.”

“The priority now is to deepen our academic footprint across multiple exam categories and build a strong foundation in offline centres. State board examinations offer a very large headroom for growth and remain relatively under-served. We have already started investing in content and faculty for those segments. Similarly, the grade 6–10 segment we launched in the last two years has been in hyper-growth mode because parents see clear value in structured support at the foundational level. We believe a blended learning model compounds trust and outcomes. Students come to us first through free online content, build a connection with the teaching style, and then many of them choose structured mentorship offline.”