Is India’s test prep market hitting a ceiling in terms of growth? That’s the soft signal from PhysicsWallah after its Q3 earnings call.

The edtech major made it clear: the next phase of growth won’t start at Class 11. It will start much earlier.

PW reported a 33.4% YoY jump in consolidated net profit to ₹102 Cr for the quarter ended December 2025, up from ₹76.7 Cr a year ago. Flush with IPO proceeds and ₹642.9 Cr in operating cash flows during 9M FY26, the company has over ₹5,000 Cr to invest in the next phase, clear on net letting it set idle.

Starting with expansion in high-demand regions, especially southern India, while doubling down on core unit economics to drive predictable, profitable scale. But the bigger story is its ambitious long-term bet on K-12 or school education.

“Focused investments in the K-12 platform form a key part of PhysicsWallah’s strategy. As you would have seen, we acquired Tender Heart, and we are now partnering with Tender Heart, and we find ourselves in a very leading position to now create a quality K-12 platform,” management said about the partnership with Tender Heart School in Ranchi.

However, PW has not disclosed any material investment in Tender Heart. During its Q3 results, PhysicsWallah announced an investment of ₹1.5 Cr to buy 50% stake in health and wellness company Kay Wellness, and acquired non-profit Nextseed Foundation in a deal worth ₹1 Lakh, but it did not mention any Tender Heart investment.

Why PhysicsWallah Is Betting Big On K-12

With over 1.5 Mn recognised schools in the K-12 space and over 260 Mn estimated students, K-12 is nearly four times larger than the test prep market. PW sees schooling itself as the root of India’s coaching dependency.

“The entire coaching industry is the outcome of bad schooling in the country. We want to fix it at the root,” cofounder Prateek Maheshwari explained during the call.

The logic is that by the time students enter the 11th grade, learning gaps are already entrenched. Competitive exam prep becomes remedial rather than additive.

PhysicsWallah now wants to intervene upstream, at the foundation level, where learning habits, conceptual clarity and academic confidence are first shaped.

Globally, this shift mirrors patterns seen in China, where listed education giants such as New Oriental eventually built larger K-12 businesses than their test prep verticals. PW’s leadership believes India will follow a similar trajectory. For context, New Oriental reported $1.2 Bn........

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