PhysicsWallah Gets ₹263 Crore Tax Notice, Plans Legal Challenge

Mumbai, March 2026 : Edtech major PhysicsWallah Limited has received an income tax demand of ₹263.34 crore, according to a disclosure made to stock exchanges on Wednesday. The company stated that it received the assessment order and demand notice on March 16.

The order, issued by the Assessment Unit of the Income Tax Department, pertains to the Assessment Year 2023–24. It treats certain investments received by the company as taxable income, including funds raised from various investors such as SEBI-registered Category II Alternative Investment Funds (AIFs). This classification has resulted in the substantial tax demand.

PhysicsWallah, however, maintained that the development will not have any material impact on its financial health, operations, or overall business activities. The company expressed confidence in its legal position, stating that it has strong factual and legal grounds to contest the order and will file an appeal before the appropriate appellate authority.

Despite the tax demand, the company continues to report robust financial growth. In the December quarter, its consolidated profit rose by 33 per cent to ₹102.27 crore, up from ₹76.72 crore in the corresponding period last year. Revenue from operations also witnessed a similar growth of 33 per cent, reaching ₹1,082.41 crore compared to ₹809.67 crore a year ago.

The company’s performance for the nine months ending December 31, 2025, was driven by a steady increase in its user base. The total number of unique paid users grew to 43.7 lakh from 36 lakh in the previous year. Growth was particularly strong in the online segment, where paid users increased to 39.6 lakh from 33 lakh. Offline enrolments also saw a rise, reaching 4.1 lakh compared to 3 lakh a year earlier.

Alongside its financial update, PhysicsWallah outlined its expansion strategy aimed at diversifying its offerings. The company plans to invest ₹1.5 crore to acquire a 50 per cent stake in Kay Wellness, marking its entry into new business areas. Additionally, it has approved the incorporation of a new subsidiary, PhysicsWallah Student Housing, which will focus on providing hostel facilities in key cities.

This move reflects the company’s broader vision to build an integrated ecosystem for students, extending beyond digital education to include physical infrastructure and support services.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)