Physicswallah returns to profit as operating margin rebounds to 22.21%
Consolidated revenue rose 18.17% YoY while expenses grew 11.07%, but other income still contributed 34.58% of pre-tax profit.
Filed 04 Nov 2026, 19:38 IST · after market close · Physicswallah Ltd (PWL)
Key takeaways
- Consolidated operating margin rebounded 27.61 percentage points QoQ to 22.21% as revenue rose 17.87% and expenses fell 13.01%.
- Net profit recovered to Rs 143.63 cr from a Rs 88.28 cr loss in Q1FY27, although other income contributed 34.58% of pre-tax profit.
- Operating margin was 10.3 percentage points above the 11.91% median for 223 Consumer Discretionary peers that had reported.
Price around the results
Q2FY27 reverses the Q1 loss
Physicswallah returned to consolidated operating profit of Rs 275.88 cr and net profit of Rs 143.63 cr in Q2FY27, after reporting an operating loss of Rs 56.9 cr and a net loss of Rs 88.28 cr in Q1FY27. The sequential recovery came as revenue increased 17.87% while expenses declined 13.01%. On a YoY basis, revenue grew 18.17%, ahead of the 11.07% rise in expenses.
Cost control drove the margin rebound, but profit quality needs watching
The faster revenue growth and lower sequential expenses lifted operating margin by 27.61 percentage points; YoY, the margin improved by 4.98 percentage points. Interest expense rose 2.04% QoQ, while the tax rate increased 36.67 percentage points, so the profit recovery was not driven by a lower tax rate. Other income accounted for 34.58% of pre-tax profit, making it a material part of reported earnings.
Margin recovers after two weak quarters and sits above peers
Operating margin moved from 21.84% in Q3FY26 to 3.13% in Q4FY26 and -5.4% in Q1FY27 before recovering to 22.21% in Q2FY27. This is a sharp rebound rather than a straight multi-quarter trend. The margin was 10.3 percentage points above the 11.91% median among 223 Consumer Discretionary peers that had reported.
Results were filed after market close
The consolidated results were filed at 19:38 IST on 04 November 2026, after market close. There is no immediate post-results stock reaction to assess for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,242 cr | ₹1,054 cr | +17.87% | +18.17% |
| Other income | ₹72 cr | ₹109 cr | -33.50% | +53.29% |
| Expenses | ₹966 cr | ₹1,111 cr | -13.01% | +11.07% |
| Operating profit | ₹276 cr | ₹-57 cr | — | +52.31% |
| Operating margin (%) | 22.21% | -5.40% | — | — |
| Interest | ₹26 cr | ₹26 cr | +2.04% | +5.09% |
| Depreciation | ₹113 cr | ₹111 cr | +2.13% | +7.97% |
| Profit before tax | ₹209 cr | ₹-84 cr | — | +111.56% |
| Tax | ₹67 cr | ₹4 cr | +1588.38% | +129.37% |
| Net profit | ₹144 cr | ₹-88 cr | — | +106.04% |
| EPS (₹) | ₹0.49 | ₹-0.27 | — | +75.00% |
Operating margin of 22.21% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin holds above 22.21% after the Q2FY27 rebound.
- Whether expenses continue to grow more slowly than revenue, after revenue growth of 18.17% outpaced expense growth of 11.07% YoY.
- Whether other income remains a material contributor after accounting for 34.58% of Q2FY27 pre-tax profit.