PhysicsWallah surges as FinZ Finance sells Rs 95.79 crore loan portfolio
The move signals a change in PhysicsWallah's approach to its business. In June 2026, the company said it would move away from lending through its own books and instead work with regulated third-party NBFCs to provide financing to students. The company had earlier planned to strengthen FinZ Finance through an investment of about Rs 120 crore, but subsequently decided to adopt a partner-led model.
Under the new arrangement, PhysicsWallah intends to facilitate lending through established and regulated NBFCs rather than carry the loans on its own balance sheet. The company said this would allow it to focus on its core education business, optimise capital allocation and reduce the balance-sheet and credit risks associated with direct lending.
FinZ Finance commenced operations in February 2026 and had a limited financial contribution to the parent company as of 31 March 2026. It reported total income of Rs 1.35 crore, equivalent to 0.04% of PhysicsWallah's total income, while its net worth stood at Rs 60.30 crore, or 1.18% of the listed entity's net worth. Revenue from operations was negligible as the subsidiary had only recently commenced operations.
The deed of assignment with Auxilo was executed on 3 October 2026, and the transition relating to the loans and borrowers is expected to be completed within 60 days. Auxilo is an RBI-registered NBFC primarily focused on education-sector financing.
The transaction is expected to reduce PhysicsWallah's direct exposure to lending while allowing the company to continue facilitating student financing through specialised lending partners.
PhysicsWallah (PW), founded in 2020 by Alakh Pandey and Prateek Maheshwari and headquartered in Noida, Uttar Pradesh, is an education platform offering online, offline and hybrid learning through its app, tech-enabled centres and YouTube channels. Its offerings span test preparation, skilling, higher education and education abroad, with programmes available in multiple vernacular languages. PhysicsWallah was listed on the NSE and BSE on 18 November 2025.
On a consolidated basis, loss for the period narrowed to Rs 88 crore in Q1 FY27 from Rs 127 crore in Q1 FY26 and Rs 69 crore in Q4 FY26. Revenue from operations increased 24% YoY and 14.7% QoQ to Rs 1,054 crore in Q1 FY27.
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