Physicswallah Gets Rs 263 Crore Income Tax Demand

(MENAFN- IANS) Mumbai, March 18 (IANS) Edtech firm PhysicsWallah Limited has received an income tax demand of Rs 263.34 crore, according to a disclosure made to stock exchanges on Wednesday.

The company said it received the assessment order and demand notice on March 16.

The order, issued by the Assessment Unit of the Income Tax Department, has treated investments received by the company during the Assessment Year 2023–24 as taxable income.

These investments included funds from various investors, such as SEBI-registered Category II Alternative Investment Funds (AIFs), which led to the tax demand.

PhysicsWallah clarified that the demand will not have any material impact on its financial position, operations, or overall business activities.

The company also said it has strong legal and factual grounds to challenge the order and will file an appeal before the appropriate appellate authority.

Despite the tax demand, the company has reported strong financial performance in recent months.

In the December quarter, its consolidated profit rose 33 per cent to Rs 102.27 crore, compared to Rs 76.72 crore in the same period last year. Revenue from operations also increased by 33 per cent to Rs 1,082.41 crore from Rs 809.67 crore a year ago.

For the nine months ended December 31, 2025, the growth was driven by a rise in paid users. The total number of unique paid users increased to 43.7 lakh from 36 lakh a year earlier.

In the online segment, paid users grew to 39.6 lakh from 33 lakh, while offline enrolments rose to 4.1 lakh from 3 lakh.

Alongside its earnings update, PhysicsWallah announced expansion plans. The company will invest Rs 1.5 crore to acquire a 50 per cent stake in Kay Wellness. It has also approved the incorporation of a new subsidiary, PhysicsWallah Student Housing, which will provide hostel facilities in key cities as part of its broader growth strategy.

MENAFN18032026000231011071ID1110878855