PhysicsWallah (PW) has received a tax demand notice worth ₹263.3 Cr from an assessment unit of the Income Tax (IT) Department
The tax authority has treated investments received during the year 2023-24 (AY24), including funds from SEBI-registered Category II AIFs, as taxable income
As a private entity, the edtech company raised close to $490 Mn from investors like WestBridge Capital, Lightspeed, Fidelity, Goldman Sachs, among others
Listed edtech company PhysicsWallah (PW) has received a tax demand notice worth ₹263.3 Cr from an assessment unit of the Income Tax (IT) Department.
In a stock exchange filing, the company said the order was issued under Section 143(3) of the Income-tax Act. The tax authority has treated investments received during the year 2023-24 (AY24), including funds from SEBI-registered Category II AIFs, as taxable income.
PW intends to challenge the tax order. “Based on its preliminary assessment, the company believes that it has strong legal and factual grounds to file an appeal before the appropriate appellate authority,” it added.
For context, PW went public in November 2025. The edtech major’s public issue comprised a fresh issue of shares worth ₹3,100 Cr and an offer for sale (OFS) component of up to ₹380 Cr. Its cofounders Alakh Pandey and Prateek Boob (Maheshwari) offloaded shares worth ₹190 each via the IPO.
As a private entity, the edtech company raised close to $490 Mn from investors like WestBridge Capital, Lightspeed, Fidelity, Goldman Sachs, among others. While it raised its largest cheque of $210 Mn in September 2024, it attained the unicorn tag when it raised $100 Mn in its Series A round in 2022.
The development comes a month after the company reported a strong financial performance for the third quarter of FY26. For the period under review, PW’s net profit rose 33% YoY to ₹102.3 Cr, while its operating revenue spiked 34% YoY to ₹1,082.4 Cr.
On the operational front, PW’s paid user base grew 21% YoY to 43.7 Lakh, with continued expansion in both online and offline segments.
Beyond its core test prep business, the company is also expanding into the K-12 segment, aiming to build an early-stage learning platform across school education. It is investing in owned schools, partnerships with existing institutions, and online learning products to tap into this segment.
The shift comes as growth in its core exam preparation categories begins to moderate, with the company looking to build a longer-term pipeline by engaging students earlier in their learning journey.
The company’s shares ended 7.87% higher at ₹86.8 on BSE today.
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