Shareholder letter
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 D R A F T · I L L U S T R A T I V E F I G U R E S T H E F I R S T L E A R N I N G P A R T N E R SHAREHOLDERS' LETTER & RESULTS Q 2 F Y 2 7 Q2 FY27 | November 4th, 2026
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 ` Enabling affordable, high-quality education at scale through a community-powered, omnichannel consumer tech platform
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 KEY TAKEAWAYS Growing faster, earning better: H1 Revenue up 21%, from a loss last year to a₹55 Cr profit this year. KEY METRICS H1 & Q2 FY27 H1 FY27 (APR –SEP) REVENUE FROM OPERATIONS ₹2,293 Cr ▲ 21% YoY PRE -INDAS EBITDA ₹190 Cr 8.3% margin Vs ₹72 Cr (3.8% margin) in H1 FY26 PROFIT AFTER TAX ₹55 Cr 2.4% margin Vs –₹57 Cr loss in H1 FY26 Q2 FY27 (JUL –SEP) REVENUE FROM OPERATIONS ₹1,242 Cr ▲ 18% YoY PRE -INDAS EBITDA ₹233 Cr 18.8% margin Vs ₹161 Cr (15.3% margin) in Q2 FY26 TOTAL ENROLMENTS* 1.85 Mn KEY TAKEAWAYS 01 Revenue grew 21% YoY in H1 and 18% YoY in Q2 H1 FY27 revenue rose 20.8% YoY to₹2,293 Cr from₹1,898 Cr. Q2 FY27 revenue rose 18.2% YoY to₹1,242 Cr from₹1,051 Cr. ACPU on enrolments rose 9.2% YoY to₹4,280 from₹3,918. 02 Profitability improved: H1 Pre-IndAS EBITDA up 2.6x and PAT of ₹55 Cr vs a ₹57 Cr loss H1 Pre-IndAS EBITDA rose to₹190 Cr from₹72 Cr, with the margin up ~450 bps to 8.3%. In Q2, Pre-IndAS EBITDA rose 45% YoY to₹233 Cr at an 18.8% margin, and PAT turned 2.0x YoY to₹142 Cr. 16+ Online Exam Categories 370 Offline Centres 19,104 Employees 7,117 Faculty Members P A G E N O . 2 03 Treasury to support long-term growth Treasury stood at ₹5,268 Cr as of September 30, 2026, including IPO proceeds. Disciplined capital allocation with a focus on online first inorganic initiatives and AI. ▲ 10.9% YoY
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 S H A R E H O L D E R S’ L E T T E R P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION A — THE QUARTER How did the business and its segments perform in Q2 FY27, and what drove this performance? ₹ CR – CONSOLIDATED Q2 FY27 Q2 FY26 YOY H1 FY27 H1 FY26 YOY Online Revenue 694 549 26.4% 1,242 961 29.3% Offline Revenue 541 496 9.0% 1,031 924 11.6% Other Revenue 8 6 22.4% 20 13 44.9% Revenue from Operations 1,242 1,051 18.2% 2,293 1,898 20.8% Online Pre-IndAS EBITDA 239 162 47.2% 312 187 66.8% Offline Pre-IndAS EBITDA -8 -7 -3.5% -108 -120 10.1% Others Pre-IndAS EBITDA 2 6 -62.6% -14 6 - Pre-IndAS EBITDA (margin) 233 (18.8%) 161 (15.3%) +351 bps 190 (8.3%) 72 (3.8%) +450 bps Profit before tax 209 (16.8%) 99 (9.4%) +743 bps 126 (5.5%) -53 (-2.8%) +830 bps Profit after tax (margin) 142 (11.5%) 70 (6.6%) +482 bps 55 (2.4%) -57 (-3.0%) +543 bps Online • H1 revenue grew 29.3% YoY to ₹1,242 Cr, and Pre- IndAS EBITDA rose 66.8% to ₹312 Cr at a 25.1% margin, up ~565 bps. • H1 ACPU on unique enrolments rose 9.2% YoY to ₹4,280, lifted by a richer premium mix and a shift to higher-priced categories: Civil Services +34.2%, GATE +30.7%, Foundation +22.6%, MBA +21.4%. • Q2 collections grew 24.9% YoY to ₹550 Cr from ₹440.5 Cr in Q2 FY26. • Q2 unique Enrolments grew 12.9% to 1.5 Mn, further, Q2 ACPU grew 10.6% • H1 revenue grew 11.6% YoY to ₹1,031 Cr; the Pre- IndAS EBITDA loss narrowed to ₹108 Cr from ₹120 Cr (−10.5% margin, from −13.0%). • In H1, Enrolments rose 4.7% and ARPU 5.4%, as centres grew to 370 from 314. • In H1, Vidyapeeth, our largest brand, contributed ₹681.8 Cr (66% of offline revenue) and 0.25 Mn enrolments. Offline Q1 P A G E N O . 3 In H1 FY27, revenue from operations grew 20.8% YoY to₹2,293 Cr. Pre-IndAS EBITDA rose 2.6x to₹190 Cr, lifting the margin ~450 bps to 8.3%, and PAT turned to a₹55 Cr profit from a₹57 Cr loss a year ago. In Q2 FY27, revenue grew 18.2% to ₹1,242 Cr, Pre-IndAS EBITDA rose 45% to₹233 Cr at an 18.8% margin, and PAT grew 2.0x to₹142 Cr. Operating leverage drove the margin gain. Both segments improved: Online’s Pre-IndAS EBITDA margin rose ~565 bps to 25.1% and Offline’s loss margin narrowed ~253 bps to −10.5%. Total operating costs, including lease payments, fell ~450 bps as a share of revenue: employee cost (ex-ESOP) fell 235 bps to 42.3%, other expenses fell 114 bps to 23.4%, and marketing cost fell to 9.4% of revenue from 10.6% in H1. AI automation now resolves 80% of student support queries and writes 92% of committed code, and deeper market penetration spreads our largely fixed content, faculty and platform costs across more learners.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 FY 27 Ans. Since NEET UG 2026 results came out on July 16, 2026, the delayed post-result demand has ramped up versus last year. In Q2 FY27, Online NEET enrolments grew over 30%. This recovery has narrowed the gap but not closed it. We compare each business over its admission cycle: • PW Online: NEET collections are about 7% below last year, and enrolments about 13% below. • PW Offline: NEET enrolments for the academic year are about 8% lower. The main reason is the shorter post-result window. Further, Xylem, acquired for NEET in Kerala, carries a heavy NEET dependence. A month-long delay in results left students less time to decide and cut into the usual admission cycle. We expect this gap to show in the full-year NEET numbers. At the company level, we expect to partly cover this gap through our K-12 categories and our new categories including Earners etc. Our NEET Crash Course programmes start later in the year and will also help NEET recovery. With NTA moving NEET fully online from next year, we think our digital-first platform is well placed for the next cycle. We expect the impact to be transient. Demand should recover over the medium to long term as India’s medical education system expands: more medical colleges, more MBBS seats, and greater use of existing hospital infrastructure to widen access to medical education across districts. SECTION A — THE QUARTER How is the NEET business recovering, and what is the outlook?Q2 P A G E N O . 5 WHAT SUPPORTS THE RECOVERY 01 Near term: new and short-duration courses We are launching courses such as Earners and crash courses to close the gap, helped by improving enrolment in short- duration courses. 02 FY28: computer-based NEET exam The anticipated transition of NEET to a computer-based examination format in FY28 could provide an additional demand catalyst.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION B — REGIONAL EXPANSION What is PW's strategy for South India and its current status? P A G E N O . 6 Q3 Ans. PW built its JEE-NEET leadership in the Hindi belt, starting with Uttar Pradesh and Bihar, and extended it to West Bengal, Maharashtra and other large states. South India is our next leg of growth: a ~15 Mn TAM across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala (~13 Mn state-board students and ~2.1 Mn JEE-NEET aspirants), in a region where our presence is still early. Early traction there is encouraging, which is why we are stepping up our focus now. We will take the same online-first playbook that worked in the Hindi speaking belt. We localise through regional languages, local faculty and AI-enabled Indic content; acquire learners through free learning, YouTube-led discovery and regional communities; convert them into paid regional batches and state-exam courses; and deepen from online to hybrid and offline across JEE–NEET, K–12, UPSC, skills and institutional and B2G initiatives. Offline, we now have 63 centres in South India, of which 26 are Xylem centres from our acquisition in Kerala. Student results strengthen the brand and feed the next round of acquisition. Over the next 24 months, PW will give South India dedicated leadership attention across localisation, brand building, faculty development and on-the-ground execution. WHY SOUTH INDIA? TELANGANA 2.6 Mn TAM ANDHRA PRADESH 2.6 Mn TAM TAMIL NADU 4.1 Mn TAM KARNATAKA 3.6 Mn TAM KERALA 2.1 Mn TAM ~15 Mn TAM ~15 Mn students across the five states: ~13 Mn state-board learners in Classes 9–12 and ~2.1 Mn JEE-NEET aspirants. Beyond these, K-8, commerce and arts, UPSC, skills and B2G widen the opportunity further. EARLY TRACTION, STAGE BY STAGE Figures are H1 FY27, with growth against H1 FY26 unless marked otherwise. L O C A L I S E 70+ regional faculty Kannada · Telugu · Tamil · Malayalam · English A C Q U I R E ~20L YouTube subscribers 24+ channels (1.6x) C O N V E R T 4.1L ▲32% learners on the PW app Monthly active users +28% D E E P E N 9% of H1 revenue from South India Online, offline and Xylem combined Outcomes: 79 KCET ranks under 5,000 (53 last year) · 345 students scored 95%+ in 2nd PUC (116) · 115 TG EAPCET ranks under 5,000 THE PW PLAYBOOK FOR SOUTH INDIA 1 LOCALISE 2 ACQUIRE 3 CONVERT 4 DEEPEN Results build the brand XYLEM: A STRATEGIC PLATFORM FOR SOUTH INDIA Xylem, PW’s acquired regional education platform in Kerala, brings an established brand, local faculty, a student base and a hybrid model focused on competitive exams. PW has increased its ownership to 77.27%, with a pathway to full ownership by FY30. PW is combining Xylem’s regional strengths with its own technology and content to deepen penetration in Kerala and expand into neighbouring states, while preserving the Xylem brand. Map is illustrative, not to scale. 5 state boards + CBSE/ICSE NEET in five languages, JEE, KCET/EAPCET/KEAM ▲4.5x YouTube views 1.17L▲14% paid learners 63 centres (37 PW + 26 Xylem) Note: Online figures cover the PW app by learner’s registered state and exclude Xylem and offline centres. Kerala is taught through free batches only.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION C — STUDENT FINANCING P A G E N O . 7 Q4Q4 What is the transaction status for the disinvestment in FinZ loan portfolio? What are your plans regarding the financing to students now ? Ans. On 4 October 2026, we informed the stock exchanges of the partial closure of the loan portfolio of our wholly owned subsidiary FinZ Finance Private Limited, as we exit lending. Under a loan assignment agreement executed on 3 October 2026, we have sold the outstanding loan book of ~₹96 Cr to Auxilo Finserve Private Limited. Students will continue to have access to financing through third-party lending partners. WHAT CHANGES AND WHAT DOES NOT What is changing What is not changing Lending and delivery model Student-financing objective PW's capital deployed in lending Students' access to financing Credit risk moves to the lending partner PW's student acquisition and education ecosystem WHY THIS MODEL WORKS PW focuses on Student acquisition, education delivery and technology Lending partner provides Capital, underwriting and credit-risk ownership Shareholders get Lower capital deployment, credit exposure and operating complexity KEY MESSAGE The objective is unchanged; the delivery model is changing.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION D — LEARNERS & OUTCOMES How did the online business perform in Q2 and H1 FY27, and what has changed since we last reported? Ans. Online revenue grew 26.4% YoY to₹694 Cr in Q2 FY27 (29.3% in H1), and Pre-IndAS EBITDA grew 47.2% to₹239 Cr at a 34.4% margin (66.8% to₹312 Cr in H1, at a 25.1% margin). K-12, upskilling, vernacular and new exams are offsetting a slower NEET cycle: categories beyond JEE–NEET made up 73.8% of H1 enrolments, up from 64.8%. H1 collections up 16.6%. Q2 collections growth is +24.9%. P A G E N O . 8 Q5 T O T A L A P P D O W N L O A D S 106.13 Mn D A I L Y A C T I V E U S E R S 4.1 Mn+ E N G A G E M E N T T I M E 98 Min H1 PERFORMANC E B EY O N D N EET J EE ( H 1 F Y 2 7, Y O Y ) • K-12 & early learning – Boards & CUET: 4.55 lakh enrol., +130%; collections +86% – Foundation: 5.70 lakh enrol., +15%; collections +40%; ACPU +23% – Commerce: 86k enrol., +42%; collections +13% • Higher-value exams, led by ACPU – Civil Services: ACPU +34% to ₹7,967; collections +40% – GATE: ACPU +31% to ₹8,647; collections +31% – MBA: ACPU +21%; Defence: collections +22% • Financial Services (CA, CS, ACCA, CFA): 70.5k enrolments at ACPU ₹5,440, ~1.3x the online average; CA enrolments +19%; market leader in these categories • Skills: enrolments 10.3x to 1.69 lakh; collections +78% • NEET PG: 9.5k enrolments, +35% • Govt Exams:enrolments −24%, collections −14%, on UC contribution, fewer job vacancies and slower exam rollouts P R EMIUM P R O DUC TS • Infinity + Pro collections rose 32% YoY in H1 (49% in Q2), lifting premium to 35% of collections from 31%. • In Q2, Infinity Pro collections quadrupled,as more learners chose the top tier. • Power Batch collections rose 31% YoY in H1 and 14% in Q2, widening premium uptake beyond Infinity. • Curious Junior collections more than doubled in H1 and grew 54% in Q2, bringing learners to PW from an early age. V ER N AC UL AR H1 FY27 enrolments grew 77% YoY to 1.23 lakh across 10 languages, up from two a year ago. Marathi leads with 46% of vernacular enrolments, followed by Bangla, Gujarati and Assamese. MAR G IN H EADR O O M Online Pre-IndAS EBITDA margin reached 34.4% in Q2, up ~490 bps YoY, and 25.1% in H1, up ~565 bps. Most content, faculty and platform cost is fixed, so margin rises as enrolments and premium attachment grow. OUTL OOK The online business is broadening its growth base through Foundation, Board+CUET and newer categories, while the recovery of IIT-JEE and NEET, revenue conversion in Skills and stabilisation of Government Exams remain key monitorables. Q2 shows early signs: NEET enrolments rose 31% and collections 27% YoY, IIT-JEE enrolments rose 17%, and Government Exam collections were stable (+2%).
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION D — LEARNERS & OUTCOMES How has been the performance in the Offline business? Ans. Offline revenue grew 9.0% YoY to₹541 Cr in Q2 FY27 (44% of company revenue, against 47% a year ago), and its Pre-IndAS EBITDA loss was₹8 Cr, against₹7 Cr a year ago. In H1 FY27, offline revenue grew 11.6% to₹1,031 Cr and enrolments grew 4.7% YoY to 4.12 lakh students. ARPU rose 5.4% to₹23,162 (not annualised) from₹21,985. Subsidiary enrolments fell to 66k from 98k: Xylem, acquired for NEET in Kerala, carries a heavy NEET dependence, and UC (Government Exams) was hit by fewer government job vacancies, on top of softer NEET demand across the group. In first half, Vidyapeeth, our largest brand, contributed₹681.8 Cr (66% of offline revenue) from 2.53 lakh students (61% of offline enrolments), at an ARPU of₹26,972. Pathshala, Xylem, UC and KP Offline serve other price points. In Q2, offline revenue rose 9% YoY. CATEGORY CENTERS AS ON 30TH SEPTEMBER 2026 H1 FY27 ENROLMENTS CENTERS AS ON 30TH SEPTEMBER 2025 H1 FY26 ENROLMENTS PW Vidyapeeth Centers 167 253k 117 219k PW Pathshala Centers 72 39k 75 42k PW Other Centers 73 56k 53 37k Subsidiaries Centers 58 66k 69 98k Total 370 412k 314 396k P A G E N O . 9 Q6 MARGIN Offline Pre-IndAS EBITDA loss narrowed to₹108 Cr from₹120 Cr, and the margin improved ~253 bps to −10.5% in H1 FY27 from−13.0% a year ago, as more centres moved past their first year. OFFLINE OUTLOOK We are opening new centres more slowly than we indicated at the IPO: 56 in H1 FY27, against 128 in H1 FY26. This slower growth is intentional. We are taking a calibrated approach to new centres, which are smaller than before, while we focus on academic excellence and on improving the economics of existing centres under our hyper-local strategy. We plan to open 25-30 centres annually for the next two years. CENTRE OF EXCELLENCE Five residential CoEs in Indore, Gurgaon, Bangalore, Noida / Greater Noida and Kota select high-potential students through a rigorous process and train them with elite faculty, an integrated curriculum and personalised mentoring. Each centre takes ~100 students, giving ~500 seats across the network. The ambition is a 15% share of the top 100 JEE and NEET ranks by 2029. PATHSHALA AND VIDYAPEETH Pathshala is our hybrid, lower-fee format for tier 2–4 towns: students in several classrooms learn from one high-quality online teacher, with a local teacher for discipline and doubts. We run 72 Pathshalas: 51 franchise-owned and 21 company- owned. A Pathshala averages 200–300 seats against 700–1,000+ for a Vidyapeeth, so we track enrolment against capacity; when demand and willingness to pay support it, usually within one to two years, we convert it into a higher-priced Vidyapeeth, which typically becomes company-owned. 10+ centres were converted in H1 FY27.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION E — NEW INITIATIVES What is the status about AI Tuto, the newest AI product? Ans. After multiple experiments and proof-of-concepts to find product-market fit, we are now well advanced in building AI Tuto, a tutor designed not simply to answer questions, but to teach. Unlike assistants that react to prompts, Tuto is conversational: students start a voice conversation when they need help, and Tuto proactively guides them through concepts, asks questions and checks understanding, without making learning feel forced. Tuto learns from thousands of hours of lectures by PW's own faculty, refined over years for teaching quality and exam relevance. Grounded in this content and our student learning data, it reduces hallucinations, stays aligned with our pedagogy and picks the right visuals, examples and teaching method for each concept. P O C R E S U L T S >98% accuracy 100K+ queries 2,000+ students 1.8–2.2 sec response C O N T E N T B A S E 1,200+ lectures 137 chapters · 329 topics 1M+ question bank I N I T I A L F O C U S Class 8 Pilot live; built to scale across K-12 P I L O T L I V E AI Tutor PoC with Class 8 students in Umang Mega Batch and CuriousJr; 1 Oct, to 14 Oct 2026 P A G E N O . 1 0 Q7 C O S T T O S E R V E ~₹17 / hour Voice-to-voice AI tutor, vs ₹300–1,000 / hour for a private home tutor1 Next: expand to Classes 10 and 12, GATE and other categories, and add vernacular languages. Decades of research (Bloom’s “2 sigma” study)2 show 1:1 tutoring is among the most effective ways to learn. Its limit has always been cost. Tuto removes that limit. 1:1 tutoring, at ~2–6% of the cost of a human tutor.1 T H E S H I F T Direction Pace Check for understanding Cost Recorded One-way, no interaction Same for everyone Rarely; tests days later Lowest, at scale Live class Teacher-led, students ask in chat Set by the teacher for the batch Live polls and doubts in class Low, at scale Tuto · 1:1 AI tutor Two-way, student talks majority of the time Adapts to each student Every few minutes Low, at scale, but now 1:1 ~1,500 students in the pilot 2-week pilot, voluntary use 4.8 / 5 ★★★★★ student rating 1 School-level 1:1 home-tutor rates, Delhi, Mumbai, Bengaluru, Hyderabad: GharPeshiksha (2026), FindMyGuru, Superprof. Tuto cost at ~₹85/US$. 2Bloom, B. S. (1984), “The 2 Sigma Problem”, Educational Researcher 13(6), 4–16. W H Y T U T O I S D I F F E R E N T 01 Content moat Thousands of hours of PW lectures, a 1M+ question bank, animations and 3D visuals. 02 Socratic teaching Text or voice in Hindi, Hinglish and English, with 3-level checkpoints and AI nudges. 03 Peer study and progress Study Rooms add peers; Tuto flags learning gaps, focuses practice; privacy built in. 04 Proprietary data + AI stack Aryabhata model plus 10+ years of PW learning data; built to scale across K -12. WHAT’S NEXT: A PW TUTOR AT EVERY STUDY DESK E A R L Y S T A G E · I N D E V E L O P M E N T 01 Tutors Tuto in a reading lamp, there whenever the student studies. 02 Sees the student’s work A downward camera reads the notebook and spots the wrong step. 03 Talks with the student Hindi, Hinglish or English, guided by the page and past work. 04 Builds the study habit Switches on at study time and nudges, like a home tutor. PRIVACY BY DESIGN On-device processing · No video stored · Physical camera shutter · Parental controls and consent Scan to watch the Tuto demo Scan to watch Tuto Lamp demo
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION F — ENGAGEMENT & AI How is AI used across PW’s products and operations, and what is new this quarter? P A G E N O . 1 1 Q8 *Cumulative from each product's launch to September 30, 2026. Ans. AI is now built into most of the places PW students learn: lectures, practice, answer evaluation, mentoring and books. Our AI study assistant, AI Guru, has answered 108.8 Mn queries from 6.09 Mn students. Two AI-first products earn revenue directly: PW Books has 49K paying students and₹3.9 Cr+ in revenue since paid books launched on 11 July 2026, and PW Pi has 54K+ paid subscribers. This quarter we added a guided AI tutor to practice sets and three new features to Pi Lens, and made our AI cheaper and faster. Inside PW, AI now resolves 80% of student support queries and writes 92% of committed code. N E W T H I S Q U A R T E R S O L V E W I T H A I G U R U An AI tutor inside practice sets. Instead of reading a worked solution, the student solves each question step by step with the AI, building the problem-solving skill that competitive exams test. Sessions are prepared in advance, so there is no wait. 01 AI breaks the question into steps 02 Guiding questions at each step 03 Student solves it with the AI F I R S T R E L E A S E · P W MO D U L E S I N T H E P W B O O K S A P P A D O P T I O N 20%+ of students in the first release C O M P L E T I O N R A T E 70% of guided sessions completed C O S T P E R Q U E S T I O N 84% lower extending to all practice sets P I L E N S Pi Lens, our AI study companion for YouTube (460K+ app downloads, rated 4.6 on Play Store), added three features: 1 V / S 1 B A T T L E S Quiz a friend or an AI opponent on any topic 5–6 battles per student who plays one C O N C E P T L A B S Notes, flashcards and mind maps from any video 2.5 projects per student who tries it D A I L Y C H A L L E N G E S New questions daily, with a rank against peers 60% adoption; week-3 retention up 30%+ C H E A P E R , F A S T E R A I We are building more of our AI in-house. A PW-built pronunciation engine now handles how our voice products read out Hinglish, I ndian names and equations, saving about $10K a month and improving student satisfaction. A PW -hosted model now routes student questions, so students get their first answer about 1.7 seconds faster. HOW AI IS CHANGING PW’S OPERATIONS AI SUPPORT 80% of student queries resolved without a human agent STUDENT SATISFACTION 2.8 → 3.7 up 32% AI-WRITTEN CODE 92% of committed code
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION G — B2G PARTNERSHIPS Do you see government partnerships as an enabler of PW’s mission, and what kind of partnerships are you pursuing? Ans. Yes. Governments reach students at a scale no private company can, through public schools, state programmes and welfare schemes, and PW brings its content, faculty and technology to that reach. The Prime Minister’s Independence Day 2026 announcement on free online coaching for competitive exams widens this opportunity. E X I S T I N G B 2 G P A R T N E R S H I P S P A G E N O . 1 2 Q9 PW works with central and state governments through MoUs, agreements, pilots and ongoing discussions. Key states and regions: Uttar Pradesh, Punjab, Andhra Pradesh, Telangana, Rajasthan, Delhi, Bihar, Maharashtra, Karnataka, Chhattisgarh, Uttarakhand and Jammu & Kashmir, among others. T Y P E S O F P A R T N E R S H I P S & S T R A T E G I C R A T I O N A L E PARTNERSHIP TYPE STRATEGIC RATIONALE & OPPORTUNITY Policy-level interventions Digital universities, digital and vertical schools, and test preparation integrated into formal education. Strategic education initiatives Digital libraries, study centres and AI Tutor pilots that extend study infrastructure and personalised learning where teachers are scarce. Commercial & revenue- generating projects Government tenders for digital content, online faculty, classroom hardware and skilling; current order book is approximately INR 80 Cr. Welfare & access initiatives Free coaching and test preparation for eligible minority, EWS, Scheduled Caste and backward-class students. Vernacular expansion State governments and local institutions help PW adopt regional-language content and state curricula, and reach students beyond its Hindi-speaking base. AI & digital skilling AI education, digital literacy and workforce skilling, in line with public-sector priorities on technology-enabled learning and employability. S T R A T E G I C V A L U E & M I S S I O N A L I G N M E N T B2G partnerships give PW policy-led participation, scalable commercial projects and deeper regional reach, and they advance PW’s mission of making quality education accessible and affordable to students across Bharat.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION G — DIGITAL UNIVERSITY Q 1 0 Recently the Punjab Government passed the Digital University Act, is there any opportunity for PW? P A G E N O . 1 3 Ans. Yes. Punjab Government notified the PhysicsWallah Digital University, Patiala Act, 2026 on 29 October 2026 following the Governor’s assent on 23 October. PWDU is a medium-term initiative that takes PW beyond test prep into degree-led, career- oriented higher education. It will work on a self-financed model. Its academic framework will follow NEP 2020, with the Governor of Punjab as its Visitor, and its first admission cycle is expected in July 2027. W H E R E P W D U F I T S I N T H E P W L E A R N E R E C O S Y S T E M W H A T P W D U O F F E R S 01 Mobile-first, low- bandwidth 02 IIT/IIM & experienced industry faculty 03 AI-personalised learning 04 Flexible & self-paced 05 Built-in apprenticeships W H Y P W W I N S : S A M E P W D N A PWDU takes inspiration from the LMS, content studios, faculty and pedagogy teams behind PW’s AI-first learning stack: W H A T I T M E A N S F O R P W : D I G I T A L- F I R S T V S . T R A D I T I O N A L U N I V E R S I T Y NEAR -ZERO CAPITAL Self-financed and asset-light: no campuses to build MEDIUM -TERM, LOW RISK A new lever for enrolments and scale 16+ PROGRAMMES PLANNED UG, PG, Diplomas & Certificates: Across Business & Mgmt · Computer & IT (incl. AI, Data Science) · Humanities · Social Sciences · Skills & Vocational Studies Batch offerings Live lectures Engagement tools Testing Revision Doubt resolution Performance analysis Assessments EARLY LEARNING EXAM PREP HIGHER EDUCATION CAREERS NEW ENROLMENTS T R A D I T I O N A L Capped by seats and a local catchment P W D U Pan-India incl. Tier 2/3; scales with content and LMS, not seats LOW COST TO DELIVER T R A D I T I O N A L Multi-acre campus, hostels and classrooms P W D U Single ~15,000 sq ft digital campus AFFORDABLE ACCESS T R A D I T I O N A L Hostel, commute and time away from work P W D U Study from home on a phone, while keeping a job LOW COST TO REACH T R A D I T I O N A L Builds demand and brand from scratch P W D U Reaches learners through PW’s existing free-user base
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SECTION H — LEARNERS & OUTCOMES Q 1 0 How did PW students perform in the 2026 results, across Online and Offline? Ans. PW's 2026 results show outcomes at national scale in both delivery models. Online, PW students took All-India Rank 1 in GATE for the third year running and in UPSC ESE for the second, AIR 1 in both CSIR NET and IIT JAM, 7 of the 20 all-India ranks in CA Foundation, and 13 of the top 19 ranks in the Haryana ADA judiciary exam. Across state boards, PW students hold 15 state Rank 1 positions in 8 boards. The pattern is the same in every vertical: top ranks at the national level, and depth behind them. Results are now tracked in more than 40 exam categories. O N L IN E R ES U L TS 2 0 2 6 : A C R O S S EX A M S EN G IN EE R I N G GATE AIR 1 in each of 2024, 2025 and 2026; UPSC ESE AIR 1 in 2024 and 2025; AIR 1 in PGCIL DT (Electrical) and NHPC JE (Civil). H IG H ER EDUC ATIO N AN D S C IEN C E AIR 1 in CSIR NET, CUET PG and IIT JAM (second year running). IIT JAM had every rank from 1 to 10 across four subjects and 1,000+ qualifiers. J U DIC IA R Y A N D S TA TE P S C S Rank 1 in Haryana ADA, with 12 more in the top 19, and in Chhattisgarh Judiciary; UPPSC Ranks 5, 9 and 16; UPSC CBI PP Ranks 7 and 10. C O M M ER C E A N D P R O F ES S IO N A L CA Foundation AIR 7 and 8 (7 of the 20 national rankers); CA Inter AIR 6 and 7; CBSE 12th Commerce top score 99.4% from 2,500+ results. N U R S IN G , DEF EN C E A N D TEA C H IN G NORCET AIR 6 with 450+ selections; Rank 1 in Bihar and WB Staff Nurse; 1,200 cleared the NDA written exam; 1,200+ UPTET selections. S C H O O L B O A R DS 14 AIR 1s and 134 students at 99%+ in CBSE Class 10; Rank 1 in both 10th and 12th in UP, Rajasthan, Jharkhand, J&K and West Bengal. P A G E N O . 1 4 National (16): GATE, seven papers over three years (ECE and Instrumentation in 2024 and 2025; Chemical, Instrumentation and Engineering Sciences in 2026) · UPSC ESE, three papers (Civil in 2024; Mechanical and Civil in 2025) · CSIR NET June 2026, Chemical Sciences · IIT JAM 2026, Biotechnology · CUET PG 2026, Life Sciences and Environmental Sciences · PGCIL Diploma Trainee 2026, Electrical · NHPC JE 2025, Civil State (4, all 2026): Haryana ADA · Chhattisgarh Judiciary · Bihar Staff Nurse · West Bengal Staff Nurse 20+ exams with an AIR 1 or Rank 1
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 (₹ in Cr, unless otherwise stated) APPENDIX A — FINANCIAL PERFORMANCE INDICATORS FINANCIAL METRICS Q2 FY27 Q2 FY26 Q1 FY27 Revenue from operations 1,242 1,051 1,050 Other income 92 47 109 Total Income 1,335 1,098 1,159 Profit/(Loss) before tax 209 99 (83) Profit/(Loss) for the period/year 142 70 (87) Profit/(Loss) Margin (%) 11.5% 6.6% (8.3%) EBITDA 348 228 53 EBITDA Margin 28.0% 21.7% 5.1% Adjusted EBITDA 399 270 137 Adjusted EBITDA Margin 32.1% 25.7% 13.0% Pre-IndAS EBITDA 233 161 (43) Pre-IndAS EBITDA Margin 18.8% 15.3% (4.1%) P A G E N O . 1 5
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 * Direct expenses & Inventory movement represent the combined total of Direct Expenses, Purchases of Traded Goods, Changes inInventories, and Cost of Raw Materials and Components Consumed. ** Payment of Lease Liabilities represents the total of the interest portion and the principal portion of lease liability payments. *** Net loss/(gain) on remeasurement of financial instruments at fair value. **** Impairment of goodwill, reported as an exceptional item in Q2 FY27. (₹ in Cr, unless otherwise stated) APPENDIX A — FINANCIAL PERFORMANCE INDICATORS FINANCIAL METRICS Q2 FY27 Q2 FY26 Q1 FY27 Revenue from Operations 1,242 1,051 1,050 YoY Growth 18% 26% 24% Less: Direct Expenses & Inventory Movement* 216 183 236 Less: Employee Benefits Expense (ex-ESOP) 482 432 487 Less: Other Expenses 231 213 300 Less: Payment of Lease Liabilities** 73 62 71 Total Expenses 1,009 890 1,093 Share of Profit/(Loss) of Associates (Net) 0.05 0.01 (0.11) Pre-IndAS EBITDA 233 161 (43) Pre-IndAS EBITDA Margin (%) 18.8% 15.3% (4.1%) Add: Payment of Lease Liabilities** 73 62 71 Add: Other Income 92 47 109 Adjusted EBITDA 399 270 137 Adjusted EBITDA Margin (%) 32.1% 25.7% 13.0% Less: Share-based Payment to Employees (ESOP) 40 41 39 Less: Fair Value Remeasurement Loss/(Gain)*** (10) 1 44 Less: Exceptional Item (Goodwill Impairment)**** 20 — - EBITDA 348 228 53 EBITDA Margin (%) 28.0% 21.7% 5.1% Less: Finance Costs 26 25 26 Less: Depreciation & Amortization Expense 113 105 111 PBT 209 99 (83) PBT Margin (%) 16.8% 9.4% (7.9%) Less: Total Tax Expense/(Credit) 67 29 4 Profit/(Loss) for the Period/Year 142 70 (87) Profit/(Loss) Margin (%) 11.5% 6.6% (8.3%) Note: Q2 FY27 PBT includes a ₹10 Cr fair-value remeasurement gain and a ₹20 Cr exceptional item (goodwill impairment). Excluding these, PBT would be ~₹220 Cr (17.7% margin). Given the limited review, certain Q1 FY27 numbers are reinstated. P A G E N O . 1 6
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 * Direct expenses & Inventory movement represent the combined total of Direct Expenses, Purchases of Traded Goods, Changes inInventories, and Cost of Raw Materials and Components Consumed. ** Payment of Lease Liabilities represents the total of the interest portion and the principal portion of lease liability payments. *** Net loss/(gain) on remeasurement of financial instruments at fair value. **** Impairment of goodwill, reported as an exceptional item in H1 FY27. (₹ in Cr, unless otherwise stated) APPENDIX A — FINANCIAL PERFORMANCE INDICATORS FINANCIAL METRICS H1 FY27 H1 FY26 Revenue from Operations 2,293 1,898 YoY Growth 21% 29% Less: Direct Expenses & Inventory Movement* 452 391 Less: Employee Benefits Expense (ex-ESOP) 969 847 Less: Other Expenses 537 466 Less: Payment of Lease Liabilities** 144 122 Total Expenses 2,102 1,826 Share of Profit/(Loss) of Associates (Net) (0.06) 0.05 Pre-IndAS EBITDA 190 72 Pre-IndAS EBITDA Margin (%) 8.3% 3.8% Add: Payment of Lease Liabilities** 144 122 Add: Other Income 201 102 Adjusted EBITDA 536 296 Adjusted EBITDA Margin (%) 23.4% 15.6% Less: Share-based Payment to Employees (ESOP) 80 82 Less: Fair Value Remeasurement Loss/(Gain)*** 35 7 Less: Exceptional Item (Goodwill Impairment)**** 20 — EBITDA 401 207 EBITDA Margin (%) 17.5% 10.9% Less: Finance Costs 52 58 Less: Depreciation & Amortization Expense 224 202 PBT 126 (53) PBT Margin (%) 5.5% (2.8%) Less: Total Tax Expense/(Credit) 71 4 Profit/(Loss) for the Period/Year 55 (57) Profit/(Loss) Margin (%) 2.4% (3.0%) Note: H1 FY27 PBT includes a ₹35 Cr fair-value remeasurement loss and a ₹20 Cr exceptional item (goodwill impairment). Excluding these, PBT would be ~₹181 Cr (7.9% margin). P A G E N O . 1 7
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX B — OPERATING PERFORMANCE INDICATORS OPERATIONAL METRICS PERIOD ENDED 30 SEPTEMBER 2026 PERIOD ENDED 30 SEPTEMBER 2025 Total Employees 19,104 18,340 Total Faculty Members 7,117 6,643 ─ Faculty Members (Employees) 6,100 5,616 ─ Faculty Members (Consultants) 1,017 1,027 Education Categories 16 13 Total Number of Paid Users 3.86 M 3.62 M Number of Unique Transacting Users (Online Channel) 3.44 M 3.22 M Average Collection Per User (Online Channel) or "ACPU" (₹) 4,280 3,918 Number of Offline Student Enrolments 0.41 M 0.39 M Average Revenue Per User* (Offline Channel) or "ARPU" (₹) 23,162 21,985 Total Offline Centers 370 314 ─ PW Vidyapeeth Centers 167 117 ─ PW Pathshala Centers 72 75 ─ PW Other Centers 73 53 Total Subsidiaries Centers 58 69 * Average Revenue Per User is not annualised. P A G E N O . 1 8
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX C — SEGMENT REPORTING WALK P A G E N O . 1 9 ₹ CR – CONSOLIDATED Q2'27 ONLINE OFFLINE OTHERS TOTAL Revenue from operations 694 541 8 1,242 Segment EBITDA 250 68 2 321 Less: Allocation of Unallocated Costs 30 24 0 54 Segment Results post allocation of Unallocated costs 220 44 2 266 Add: Share-based Payment to Employees (ESOP) 26 15 0 40 Less: Payment of Lease Liabilities 7 66 0 73 Pre-IndAS EBITDA 239 -8 2 233 Pre-IndAS EBITDA% 34% -1% 27% 19% Note: (1) Segment Results as shared in the Financial Results are calculated adding Finance costs, Depreciation and amortisation expense and Net loss /(gain) on remeasurement of financial instruments at fair value to Profit/ (loss) before share of profit/ (loss)of associates, exceptional items and tax for the period / year and reducing the Other income. (2) Unallocated, as reported in the Financial Results, pertains to Corporate Costs that do not directly relate to any specific segment. These costs are allocated across the respective segments for the purpose of presenting Pre-Ind AS EBITDA on a segment-wise basis. (3) Figures are rounded to the nearest crore, so totals and line items may not add up exactly due to rounding. Walk from Segment Results to Pre-IND AS EBITDA - Segment Wise ₹ CR – CONSOLIDATED Q2’26 ONLINE OFFLINE OTHERS TOTAL Revenue from operations 549 496 6 1,051 Segment EBITDA 171 61 6 238 Less: Allocation of Unallocated Costs 29 26 0 56 Segment Results post allocation of Unallocated costs 142 35 6 182 Add: Share-based Payment to Employees (ESOP) 26 15 0 41 Less: Payment of Lease Liabilities 5 56 0 62 Pre-IndAS EBITDA 162 -7 6 161 Pre-IndAS EBITDA% 30% -1% 88% 15%
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX C — SEGMENT REPORTING WALK P A G E N O . 2 0 ₹ CR – CONSOLIDATED H1'27 ONLINE OFFLINE OTHERS TOTAL Revenue from operations 1,242 1,031 20 2,293 Segment EBITDA 326 41 -13 354 Less: Allocation of Unallocated Costs 54 45 1 99 Segment Results post allocation of Unallocated costs 272 -4 -14 255 Add: Share-based Payment to Employees (ESOP) 53 27 0 80 Less: Payment of Lease Liabilities 13 131 0 144 Pre-IndAS EBITDA 312 -108 -14 190 Pre-IndAS EBITDA% 25% -10% -69% 8% Note: (1) Segment Results as shared in the Financial Results are calculated adding Finance costs, Depreciation and amortisation expense and Net loss /(gain) on remeasurement of financial instruments at fair value to Profit/ (loss) before share of profit/ (loss)of associates, exceptional items and tax for the period / year and reducing the Other income. (2) Unallocated, as reported in the Financial Results, pertains to Corporate Costs that do not directly relate to any specific segment. These costs are allocated across the respective segments for the purpose of presenting Pre-Ind AS EBITDA on a segment-wise basis. (3) Figures are rounded to the nearest crore, so totals and line items may not add up exactly due to rounding. Walk from Segment Results to Pre-IND AS EBITDA - Segment Wise (H1) ₹ CR – CONSOLIDATED H1’26 ONLINE OFFLINE OTHERS TOTAL Revenue from operations 961 924 13 1,898 Segment EBITDA 196 9 6 211 Less: Allocation of Unallocated Costs 51 49 1 100 Segment Results post allocation of Unallocated costs 145 -39 5 112 Add: Share-based Payment to Employees (ESOP) 50 32 0 82 Less: Payment of Lease Liabilities 9 113 0 122 Pre-IndAS EBITDA 187 -120 6 72 Pre-IndAS EBITDA% 19% -13% 41% 4%
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX D — IMPACT STORIES P A G E N O . 2 1 Four PW students who cleared NEET and JEE despite financial hardship at home. Md Waqif Warsi NEET 2026 SON OF AN AUTO -RICKSHAW DRIVER Growing up in a cramped home with a leaking roof in the slums of Kolkata, Waqif refused to let circumstances define his future. Through discipline, family and faculty support, he scored 632 marks in NEET UG 2026. Satyanarayana Vishwakarma NEET 2026 SON OF A WELDER Satyanarayana's father worked as a welder, while his mother was a house wife. Coming from a modest family, he overcame financial hardships, the threat of losing his home, and a family accident to stay committed to his dream of becoming a doctor. After his first attempt in NEET UG 2025, he dropped an year, improving his score to 567 in his second attempt in NEET UG 2026. Sagar Gupta NEET 2026 SON OF A HAWKER Coming from a financially constrained family, with his mother working as a school staff member and his father selling clothes on a motorcycle, Sagar fought through financial hardships, his father’s cataract surgery, and the uncertainty of a cancelled NEET exam. Despite the setback after the re-exam, he remained determined to pursue his dream and cracked the NEET UG 2026 exam. Satyam JEE ADV 2026 SON OF A SECURITY GUARD Coming from a financially disadvantaged family, with his father working as a security guard and his mother a homemaker, Satyam overcame financial limitations to pursue his engineering dream. With family support and guidance from his teachers he remained consistent with long study hours, regular practice and mock tests, eventually cracking JEE Advanced 2026.
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX E — GLOSSARY (CONTD.) TERM DESCRIPTION Revenue from operations Revenue from operations means revenue generated by our Company from sale of services, sale of products, and other operating income. Revenue from operations (Online Channel) Revenue from online offerings where we conduct live online classes on website and apps including sale of books facilitating the same. Revenue from operations (Offline Channel) Revenue recognized for the students enrolled in offline/hybrid courses where faculty members conduct face-to-face classes in a physical offline center and through two- teacher model where a faculty teaching from a studio, complemented by doubt faculty stationed from a PW Pathshala Center. Including sale of books and hostel accommodation facilitating the same. Revenue from operations (Others) Revenue from operations (Others) includes advertisement income, which primarily includes income earned from third-parties that place advertisements on our YouTube channels, income from content access and sales and other operations of Finz Fintech, Finz Finance, Key Lifestyle and PW Foundation. Other income Other income includes income generated by our Company from interest income on deposits with bank, net unrealized gain on FVTPL investment amongst others. Total income Total income means sum of revenue from operations and other income. Profit/(loss) before tax Profit/(loss) before tax is calculated as total income less total expenses and total exceptional items. Profit/(loss) for the period/year Profit/(loss) for the period/year is calculated as total income less total expenses, total exceptional items and total tax expense/(credit). Profit/(loss) margin for the period/year Profit/(loss) margin for the period/year is calculated as loss for the year/period, divided by revenue from operations. EBITDA EBITDA is calculated by adding total tax expense/(credit), finance costs and depreciation and amortisation expense to loss for the year/period. EBITDA Margin EBITDA Margin is calculated as EBITDA, divided by revenue from operations. Adjusted EBITDA Adjusted EBITDA is calculated as adding net loss on remeasurement of financial instruments at fair value, share based payment to employees and reducing total exceptional items to EBITDA. Adjusted EBITDA Margin Adjusted EBITDA Margin is calculated as Adjusted EBITDA, divided by revenue from operations. Pre-IndAS EBITDA Pre-IndAS EBITDA is calculated as reducing payment of interest portion of lease liabilities, payment of principal portion of lease liabilities and Other Income to Adjusted EBITDA. Pre-IndAS EBITDA Margin Pre-IndAS EBITDA Margin is calculated as Pre - IndAS EBITDA, divided by revenue from operations. Total Employees Personnel who are on payroll of the company as on end of the given year/period. P A G E N O . 2 2
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 APPENDIX E — GLOSSARY (CONTD.) TERM DESCRIPTION Total Faculty Members Aggregate number of faculty members on payroll of the company and hired on contractual basis as on end of the given year/period. Faculty members (Employees) Faculty members who are on the payroll of the company as on end of the given year/period. Faculty members (Consultants) Faculty members hired on contractual basis as on end of the given year/period. Education Categories Educational offerings that contributed over ₹100 M in collections in a particular financial year/period. Once classified as an Education Category, it will remain so unless management decides otherwise. Total Number of Paid Users Aggregate sum of number of Unique Transacting Users (Online Channel) and number of Offline Student Enrolments. Number of Unique Transacting Users (Online channel) Aggregate number of unique paying users for online offerings identified basis unique mobile numbers. Number of Offline Student Enrolments Aggregate number of unique students enrolled in the company’s offline/hybrid courses identified basis unique mobile numbers, including students that initially enrolled in prior periods but are still enrolled for the current period and excluding students enrolled in short term courses such as All-India preparatory test series (AITS) and Marks Improvement Programme (MIP). M M denotes for Million. Average Collection Per User (Online Channel) or “ACPU” Payments collected from users enrolled in the online offerings for the year/period divided by number of Unique Transacting Users (Online Channel). Average Revenue Per User (Offline Channel) or “ARPU” Revenue recognized for students enrolled in offline/hybrid course for the year/period divided by number of Offline Student Enrolments. PW Vidyapeeth Centers Our Company’s offline coaching centers which help students in preparing for JEE, NEET, and Foundation courses. It offers face-to-face classroom teaching, enabling direct instruction and interactive learning. PW Pathshala Centers Our Company’s offline coaching centers by which our Company integrates online and offline learning through a two-teacher model to support students preparing for JEE, NEET, and Foundation courses. It features experienced faculty teaching from a studio, complemented by doubt faculty stationed at the PW Pathshalas Centers. PW Other Centers Offline centers that cater to specific course categories, including Defence, CA Offline, Govt Offline, Only IAS, Institute of Innovations, Bothra (Penpencil) among others. Total Subsidiaries Centers Aggregate number of centers operated by Xylem, Utkarsh Classes and Knowledge Planet as on end of the year/period. Free Cash Flow to the firm (FCFF) FCFF is derived from Net Cash Inflow from Operating Activities, adjusted for capital expenditures (including PPE purchases, CWIP, capital advances, and payables for capital goods) and investments in intangible assets. It also accounts for proceeds from asset sales, cash outflows for subsidiary investments (net of cash acquired), and lease-related interest and principal payments. Treasury The treasury comprises balances held under Investments (non-current and current), Other Financial Assets (non-current and current), Cash and Cash Equivalents, and Other Bank Balances. Please note that investments in debentures are not included within our treasury. P A G E N O . 2 3
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 This document includes statements that may be regarded as “forward-looking statements.” Such statements relate, without limitation, to discussions of the intentions, beliefs, expectations, objectives, goals, future plans, strategies, financial condition, operating results, or prospects of PhysicsWallah Limited (“the Company”). These forward-looking statements are based on the current assumptions, expectations, and beliefs of the Company’s management. They are subject to substantial risks, uncertainties, and assumptions that are inherently difficult to predict and are beyond the Company’s control. Such risks and uncertainties may include, among others, regulatory changes, shifts within the Indian education sector, technological advancements, competitive pressures, variations in demand, execution-related challenges, macroeconomic conditions, and other factors that could influence the Company’s business model, operations, revenues, profitability, or growth trajectory. Actual results, performance, or outcomes may differ materially from those indicated in these forward-looking statements. The Company makes no representation, warranty, or assurance, whether expressed or implied, regarding the accuracy, completeness, or fairness of the information or opinions presented in this document. The information provided has not been independently verified. Any views or estimates contained herein reflect current assumptions and are subject to change without prior notice. Past performance should not be interpreted as an indicator of future results. This document and its contents are confidential and proprietary to the Company and/or its affiliates. No part of it may be used, reproduced, copied, distributed, shared, disseminated, or published, in whole or in part, in any manner whatsoever, without the prior written consent of the Company. This document does not constitute, and should not be interpreted as, an offer, invitation, solicitation, recommendation, or advertisement for the purchase, sale, subscription, or issuance of any securities of the Company in any jurisdiction. It does not provide, nor should it be construed as providing, any tax, legal, accounting, or investment advice. Nothing contained herein shall form the basis of, or be relied upon in connection with, any contract, commitment, or investment decision. Investment in equity and equity-related securities involves inherent risks, including the risk of loss of capital, and recipients should rely solely on their own independent investigation, analysis, and professional advice before making any investment decisions. Neither the Company nor its directors, officers, advisors, affiliates, or representatives shall be liable for any loss arising from the use of this document or its contents. The Company assumes no obligation to update or revise any forward- looking statements except as required by applicable law. DISCLAIMER P A G E N O . 2 4
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P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 SHAREHOLDERS’ LETTER P H Y S I C S W A L L A H L I M I T E D Q 2 F Y 2 7 “विद्या सर्वस्य भूषणम्” “Education is the ornament of all” For Further Information, Please Contact investorsrelation@pw.live END OF LETTER