PhysicWallah Ltd. has received an income tax demand of Rs 263.34 crore, as per a disclosure to the exchanges on Wednesday.
The Edtech firm received the assessment order and demand notice on March 16, according to the exchange filing. The order from the Assessment Unit of the Income Tax Department has treated the investments received during Assessment Year 2023–24 from investors, including SEBI-registered Category II AIF, as taxable income, resulting in a tax demand of Rs 263.34 crore.
"This Demand Notice will not have any material impact on the Company's financial position, operations, or business activities," the company said in its statement. It also added that based on the preliminary assessment, PhysicsWallah has a strong legal and factual ground to file an appeal before the appropriate appellate authority.
PhysicsWallah's Q3 Results
PhysicsWallah reported a 33% rise in consolidated profit to Rs 102.27 crore in the December quarter, the company said in a filing on Feb 5. Profit stood at Rs 76.72 crore in the same period a year earlier. Revenue from operations rose 33% to Rs 1,082.41 crore from Rs 809.67 crore a year ago.
For the nine months ended Dec. 31, 2025, the company attributed growth to higher unique paid users, which rose to 43.7 lakh from 36 lakh. Paid users in the online segment increased to 39.6 lakh from 33 lakh. Offline enrolments rose to 4.1 lakh from 3 lakh.
Alongside the earnings update, the company said it will invest Rs 1.5 crore for a 50% stake in Kay Wellness. It also approved the incorporation of a subsidiary, PhysicsWallah Student Housing, to provide hostel facilities in key cities.
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