Edtech company PhysicsWallah Limited disclosed an income tax demand of Rs 263.34 crore to stock exchanges on Wednesday. The company received the assessment order and demand notice on March 16. The Income Tax Department’s Assessment Unit considered investments received during the Assessment Year 2023–24 as taxable income, leading to the tax demand.
PhysicsWallah stated that the demand would not significantly impact its financial standing, operations, or overall business activities. The company emphasized having strong legal and factual grounds to contest the order and intends to appeal before the appropriate appellate authority. Despite the tax demand, PhysicsWallah has shown robust financial performance in recent months.
In the December quarter, the company’s consolidated profit surged by 33% to Rs 102.27 crore, up from Rs 76.72 crore in the corresponding period last year. Revenue from operations also saw a 33% increase to Rs 1,082.41 crore from Rs 809.67 crore a year ago. The growth for the nine months ending December 31, 2025, was primarily fueled by a rise in paid users, with the total number of unique paid users climbing to 43.7 lakh from 36 lakh a year earlier.
Paid users in the online segment grew to 39.6 lakh from 33 lakh, while offline enrolments increased to 4.1 lakh from 3 lakh. Alongside its financial update, PhysicsWallah revealed expansion plans, including a Rs 1.5 crore investment for a 50% stake in Kay Wellness. The company also approved the establishment of a new subsidiary, PhysicsWallah Student Housing, to offer hostel facilities in key cities as part of its broader growth strategy.
