PhysicsWallah gets tax relief as I-T dept cuts demand; contests residual ask of Rs 193 crore

Edtech unicorn PhysicsWallah has received partial relief in an ongoing tax dispute, after the Income Tax Department reduced its demand from Rs 263.3 crore to Rs 192.7 crore. The revision follows a rectification application filed by the company.

In a stock exchange filing, PhysicsWallah said it has also filed an appeal against the updated order with the Commissioner (Appeals).

The company added that it believes it has “strong legal and factual grounds to contest the balance tax demand.”


PhysicsWallah stated that it received the rectification order on April 13 under Section 154 read with Section 143(3) of the Income-tax Act. This came after it requested corrections to the original assessment. The revised order was issued by the Assistant Commissioner of Income Tax, Circle 5(2)(1), Noida.

The matter goes back to an earlier assessment order and demand notice dated March 18, 2026. At that time, the tax department had raised a demand of Rs 263.34 crore. As per the company’s earlier disclosures, the assessment unit had classified certain investments received during FY24 as taxable income. These included funds raised from Sebi-registered Category II alternative investment funds.

Despite the ongoing dispute, the company said, “This order will not have any material impact on the Company's financial position, operations, or business activities.”

In February, the company posted its earnings for the third quarter of FY26. It reported a 34% year-on-year increase in operating revenue, reaching Rs 1,082.4 crore for the quarter ended December 31, 2025. This growth was supported by a rise in paid users as well as the expansion of its offline centre network.

The company reported a net profit of Rs 102.3 crore, up from Rs 70 crore in the previous quarter.