PhysicsWallah
had a blockbuster Q2 FY27. The quarter saw the edtech giant swing back to profitability. With South India emerging as its next growth frontier and a NEET slowdown still lingering, can PW build on its Q2 momentum?
Here’s a quick glance at the edtech firm’s Q2 FY27 performance:
PW’s Growth Engines: The edtech major’s Q2 show was driven by healthy revenue growth, tighter cost control and improving operating leverage. Online business remained PW’s primary growth engine, while the offline network continued to add centres and enrolments. The company also benefited from a shift away from direct lending, reducing balance sheet risk.
The startup’s next priority is its AI tutor (currently in pilot), which could reduce the cost of personalised learning and extend its reach beyond physical classrooms.
NEET Slowdown: The quarter was not without challenges. A delayed NEET exam cycle slowed enrolments and collections, impacting both online and offline verticals. To offset the gap, PW is launching full-length crash courses and increasing non-NEET enrolments. As a result, the management expects some collections to spill into the next quarter, while anticipating stronger recovery in the next academic session.
The Next Frontier: PW has now identified South India as its next major growth opportunity, which is home to a large student base. PW is pursuing the region through an online-first playbook rather than relying primarily on new physical centres. It also plans to tap into AI-led live translation to reach students across multiple Indic languages without adding significant academic cost.
With profitability improving and AI becoming central to its strategy, here’s how PhysicsWallah fared on the financial front in Q2…
Most voice bots can answer questions. But banking calls often require action, be it checking loan status, retrieving documents or updating records. Karta AI is building voice agents that can resolve these complex financial calls end to end, thereby reducing queues and support costs.
Built For Banks: Founded in 2024, Karta operates an omnichannel customer communication platform spanning voice AI, chat, email and WhatsApp. Its AI agents use a predictive context engine that draws on knowledge bases, past interactions and live data to execute workflows across enterprise systems.
This allows the startup to handle multiple customer intents in a single conversation rather than routing callers through multiple agents.
Healthy Early Traction: The startup claims to handle around 20 Lakh user conversations every month across 25+ languages. Karta claims that its inbound servicing agent resolves about 70% of borrower queries and cuts cost per query by nearly 50%. The Bengaluru-based startup also claims to have 10-12 paying customers, including the likes of PhonePe, Pine Labs, Bajaj and Aavas.
Eye On The Prize: Going forward, Karta plans to strengthen its end-to-end automation and multilingual capabilities, expand BFSI deployments, and grow its engineering and GTM teams. The startup’s challenge will be maintaining accuracy, security and compliance as it handles increasingly sensitive financial workflows.
With India’s conversational AI market projected to become a $3.7 Bn opportunity by 2033, can Karta make voice agents the default layer for BFSI customer service?
From pocket-friendly perfumes to premium luxury scents, there’s a fragrance for every budget and gifting occasion. And the business behind these bottles is growing fast. Here’s all about the trends shaping India’s fragrance market…
Source: Inc42
