• Finzy Finance reversal: PhysicsWallah decided against on-book lending and reversed its ₹120 crore equity infusion into Finzy Finance to focus on core education operations. The company is evaluating paths such as strategic divestment or running down the loan book to return the capital, while transitioning to connect students with third-party NBFC partners.
• Income tax notice: The Income Tax Department's initial demand of ₹263 crore was rectified to ₹190 crore regarding treated investment flows. PhysicsWallah has deposited 10% of the rectified demand and filed an appeal before the Commissioner of Income Tax (Appeals), expressing confidence in a favorable resolution.
• Financial performance outlook: The company reported 35% year-over-year revenue growth (74% 3-year CAGR) and achieved positive PBT ahead of schedule. Management guided for 30% revenue growth and positive PAT next fiscal year, projecting online revenue share to expand from 50% to 55%.
• Capital allocation strategy: Management will allocate treasury funds toward strategic category and geographical acquisitions—particularly in South India—as well as ongoing investments in AI technology. Capital expenditure for offline expansion will be measured across its existing base of approximately 350 centers teaching 4.5 lakh students.