Thank you, Ryan. Good morning, everyone.

It is indeed a great pleasure to host PhysicsWallah's maiden earnings call after its stellar listing. Joining us today to discuss earnings for the second quarter and half year ended 30th September, 2025 are Mr.

Alakh Pandey, CEO and Whole-Time Director, Mr. Prateek Boob, Whole-Time Director, and Mr.

Amit Sachdeva, CFO. The results and shareholders' letter have been uploaded to the stock exchanges and are available on the company's Investor Relations website.

Before we begin, I'd like to remind you that certain statements made on this call may be forward-looking in nature and should be viewed in conjunction with the risk factors disclosed in the company's filings. With that, I'll now hand the call over to Mr.

Alakh Pandey.

Hello, everyone. Good morning, good afternoon, good evening, whichever part of the world you are joining from.

Thank you everyone, thank you so much for being a partner at PW now and literally changing the educational landscape of Bharat. Thank you everyone, or should I say congratulations as well.

For now, as you are one of the disruptors in education in India, part of that mission. At PW, we have always believed, and we will still believe, that education should not be a luxury.

It is a necessity. It is a right of every kid.

We are here to provide that basic right to each of the students of Bharat. We are here to reach to Tier 3, Tier 4, the remotest village of Uttar Pradesh, Bihar, Rajasthan, and all other states of the India.

IPO was a good milestone for me, for Prateek, for the entire team. It was a good success, but along with that, a lot of responsibility.

We feel a lot of responsibility from all the shareholders who supported us, who were there with us, who trusted us even with a lot of marks on the education sector in the terms of financial world. PW has proven that wrong, and we'll continue proving that with...

We feel we are still scratching the surface. We have just started.

The whole Bharat is waiting for us. We have the right pedagogy, right content, as well as the right technology.

There are enough amount of students waiting for all of us to be taught, to be brought to the mainstream Bharat. Over to you, Prateek and Amit-ji.

Thank you, Alakh sir, for opening remarks. Welcome you all.

Prateek Boob this side. We have published our second quarter results.

Overall, company is looking quite strong in terms of enrollment growth, in terms of overall revenue growth, path to profitability, a good jump in our PAT numbers from last year Quarter 2 to this year Quarter 2. Overall, H1 looks quite strong to us.

In general, Quarter 3 is the strongest quarter for the company. Quarter 3 will also be PAT profitable.

We have a very unique business model which is very affordable courses for Bharat, in which thousands of students study together in a live classroom environment. We continue to teach the remotest part of the country with the help of internet and mobile penetration.

If you see our offline growth numbers in terms of enrollments, in terms of overall penetration is also increasing at a very rapid rate. Happy to answer any of your questions in terms of numbers.

Before we jump to that, I would like to invite Amit and if you want to add on anything else.

Thank you so much, Prateek sir. Just a quick summary of our quarterly Q2 FY26 performance.

We did upload all the materials on our website yesterday and the necessary done on the stock exchanges. Overall, revenue from operations increased 26% year-over-year to 1,051 crores.

Our adjusted EBITDA grew 38% to 2 269 crores, with margin expansion from 23% to 26%. Our pre-Ind AS EBITDA, we've also started reporting Ind-AS or pre-Ind AS EBITDA as part of our reconciliation now.

That in Q2 came at 160 crores, almost a jump of 30 37% year-over-year improvement. Our Q2 PAT came at roughly 70 crores, up 70% year-over-year.

Like Prateek sir mentioned, I think our enrollments are looking strong, both in online and offline. Our online ARPU continues to grow significantly.

We saw an 8% increase in our online ARPU. We feel that our academic cycle, depending on how the enrollments come in, we expect the full-year number to be in the same region.

In terms of Q3 performance, Q3 is going to be our strongest quarter depending on how the academic cycles is and as part of one of the questions that we've also answered if you got a chance to look at the Q&A. In terms of the cyclical nature of our business, Q1 comes strong in terms of our enrollments.

Q2 and Q3, where most of our batches run, both from an online and offline perspective, come strongly in terms of our revenue recognition based on the batches that keep on happening. Q4, as the batches run down, enrollments come back and one of the highest quarters in terms of collections, as we launch Vishwas Diwas, which is our largest event in terms of student enrollment.

That's a quick summary of our overall financial performance. We can now open up the forum for any Q&A that the team might have.

Hi. Good morning, team.

My questions are going to be—and apologies if these are naive questions, but slightly basic. First is, let's say, now that you're a listed company, how do you think about balancing growth and profitability?

Because the reason how you started, and the ending page says that education is the ornament of all. How do you balance the pressure of publicly listed company, which also focuses on profitability as compared to growth, that in an unlisted setup that is easy?

How do you do it now that you are listed and there are going to be quarterly pressures, to speak?

See, thank you, Vivek, for asking this question. Of course, to run a listed company, you have to see top-line growth and bottom-line growth.

This is essential for any company. We as a company is on a mission to teach Bharat.

That doesn't mean that we need not to give profitability. If you see our results of Quarter 2, the entire H1, we have a 29% revenue growth.

Bottom line also improved significantly. Yeh toh hum historically perform kar hi rahe hain, both top-line improvement and bottom-line improvement.

Agar aap dekhenge toh with the help of technology and internet already humne prices ko bahut disrupt kar diya hai. Matlab poori IIT aur NEET ki taiyari jo saal bhar ki live learning hai woh 4,000 rupees mein aaj bhi ho rahi hai.

Humne hamare ARPUs, ATPUs jo online ke hain woh sirf 8% se badhaye hain. Phir bhi humne more than 30% ki growth jo hai deliver kar di hai.

Yeh sab kahan se ho raha hai? Because India ke andar bahut saare aise bachhe hain jinko achhe quality teacher ka access nahi hai.

Matlab total 25 crore bachhe hain jisme se hum less than 2% market share leke baithe hain. Toh with the smartphone penetration, with the internet penetration, with we expanding to state boards as an exam categories, K-10 as an exam categories, and adding newer exam categories, toh enrollment growth abhi bahut aana baaki hai yahan se.

As well as hum toh bahut hi affordable pricing pe baithe hain. Toh ARPU improvement ya ATP improvement ka scope bhi bahut hai.

For example, jo poore din ki padhai hai woh 10 rupees per day matlab less than a chai ke paison ke andar hum kara rahe hain. Bachhon ko abhi internet mehenga padh raha hai hamare courses se.

Toh ARPU improvement ka bhi scope hai, but not at the violation of the vision of the company which is make education accessible for entire country.

Got it. Very interesting.

Sir, matlab, I don't want a formal guidance from you, but let's say over the next 3, 5 years, how do you think your growth trajectory should be? Year-to-year there may be blips along the way, but 3, 5 years mein aapko kaisa lagta hai, how should the growth numbers be for you?

We wanted to grow sustainably. Aur both aapko growth ke andar revenue improvement bhi dikhega as well as profitability improvement bhi dikhega.

Dono numbers aapko agle 3 se 5 saal mein upar jaate hue dikhenge. Because TAM is huge.

Aur we want to grow sustainably. We have a very unique business model jiske andar hum communities banate hain, internet pe free padhate hain.

Agar kisi bachhe ke paas mein 4,000 rupees nahi bhi hain toh bhi woh jaa karke free padhai kare YouTube se aur wahan se bhi uske selection ki guarantee utni hi hai. Toh over the period of time, marketing cost mein leverage aayega.

Percentage like payroll costs as a percentage of revenue ke andar leverage aayega. As well as enrollment growth ki trajectory bhi strongly dekhne ko milegi aapko.

Toh both top line and profit and bottom line ke andar aapko next 3 to 5 years ke andar achha improvement dekhne ko milega.

Got it. Couple of more questions, if I may.

On the let's say expansion into other, both at least south as well as other than JEE, NEET, do you think you're spreading matlab as an outsider I think thoda mujhe aisa lagta hai ki you're spreading yourself a bit too thin. Do you think that is the case?

How do you manage when you have so many things? Almost half of your total enrollment was around, let's say JEE, NEET.

Now that has come down to about 35%. How do you manage as you are adding more categories?

Right. I am just referring to the question number 14 of our shareholder letter.

I am glad that you have brought this thing up. JEE and NEET are the early exam categories jo humne 2020 ke andar start ki thi.

Wahan pe bhi aap dekhenge toh overall revenue improvement is in double digits and continue to be strong growth lever for upcoming years. Dependency on JEE, NEET has reduced drastically over the years because the playbook which we have created ki communities banao, YouTube pe free padhao, wahan se bachha aapke app pe aayega, aapke paid courses lega, aapki marketing ke spends ko kam rakho.

Toh yeh freemium model jo hai, woh playbook JEE, NEET ke alawa baaki exam categories ke andar bhi apna magic dikhane laga. Toh agar aap dekhenge in terms of percentage of enrollment, JEE, NEET 36% tha 2024 mein, jo 31% ho gaya 2025 mein.

Aage aane wale time ke andar bhi yeh percentage jo hai woh aap agar H1 ka number dekhenge 2025 se 2026 ka ki what is the percentage of the total enrollment is coming from JEE, NEET exam categories, woh that is on also declined. Toh iska matlab naye exam categories kaafi rapidly grow kar rahe hain.

In terms of JEE, NEET growth rates, Hindi heartland ke andar humne achha market share abhi le rakha hai. There is a Central India and there is a Southern India jahan par hum bhi bahut tezi se grow kar rahe hain.

Overall, there is a scope to do multifold growth in JEE, NEET itself, and other exam categories ke andar toh humne hamare business ko poora diversify kar hi liya hai.

Got it. Last question is, do you think there is a sense whether it's about new region or, let's say, getting let's say bigger success and share in the new categories, M&A, do you think?

Because I'm guessing there will be a lot of regional heroes who are doing great in their catchment area, but are highly regionalized. Do you think there is a sense in acquiring those?

See, dekhiye, agar aap dekhenge toh hum abhi India ki sabse badi education company hain jo listed hain. Aur hamare paas mein market consolidation ki saari opportunities aayengi.

Because we are the largest and we are a listed company, toh access to the capital becomes easier once you are listed, and we are sitting on a lot of cash as well. At the same time, any M&A ko company kis lens se dekhti hai ki ya toh woh humko koi geographical expansion de ki agar kisi geography ke andar kisi specific language ke andar agar hum nahi present hain toh hum wahan pe M&A karein, ya fir humko category expansion de ki koi aisi exam categories jiske andar hamara target audience nahi hai.

Toh yeh do thesis humne banayi hain. We have successfully demonstrated in the past also.

Aur this year also, we have done one M&A with the Sarthi IAS, which is in the UPSC domain. Jiss target audience ko woh padhate the, that was slightly different from PW target audience.

Aur 40% stake humne Sarthi IAS ke andar liya, we will have 85% stake till FY28. Aur Sarthi ki bhi growth last year to this year ki kaafi strong more than 30% aapko dekhne ko milegi.

Toh we have the opportunity, but at the same time, one has to be very conscious to do these things, because two companies put in together, two different cultures put in together. M&A ke andar it is very important ki cultural alignment ho, strategic alignment ho.

Toh it is a thing which one has to do with the utmost responsibility, but we are sitting on a lot of opportunity at this point of time.

Got it. Thank you for patiently answering all my questions and wishing you all the very best.

Thank you. Thank you.

Hi. Good morning, and thank you for the opportunity, and congratulations on the great results.

I have two questions. The first one is on the top-line growth.

Again, if you cannot give a formal guidance, that is fine, but for this quarter, the top line grew at around 26%. The last quarter, we did YoY around 33%.

In FY25, we were at around 48%. Because the nature of the business is that you have a visibility of the entire year, how are you looking at the second half of the year in terms of the top line?

That is my first question.

Overall, in terms of macro, the Quarter 3 is the strongest quarter for the cyclicity nature of the company. Quarter 3 jo hai company ka highest top line and highest EBITDA margin quarter hota hai.

Quarter 3 ke andar upwards of 20% EBITDA which we have done in Quarter 2 a number of 15% EBITDA if you see the Quarter 2 EBITDA numbers. In terms of revenue growth also, agar aap dekhenge toh H1 ke andar agar hum H1 ki growth last year H1 se compare karein, toh 29% growth H1 ki hamari rahi hai last year to this year.

Aur uske andar 49% contribution from online operations aa raha hai, 47% contribution from offline channels aa raha hai, and 4% from other channels aa raha hai. Which is we have covered in our shareholder letter as well.

H2 ke andar jo revenue hoga woh H1 se zyada hi hoga. That is what I can give you guidance.

Okay. Thank you, Prateek.

Jo second question hai, woh aapki offline expansion ke upar. Agar aap thoda understanding denge, abhi largely overall jo split hai woh kind of balanced hai online and offline mein.

Down the line jaise ki aap offline expansion kar rahe hain, abhi aapke 300 ke upar centers hain. Toh how do you see that split going on down the line, let's say 2 years, 3 years down the line ki offline and online ka jo, because wahan pe ARPU zyada hai offline mein, toh woh revenue split aap kaise dekhte hain online and offline mein ki woh balanced rahega ya will get tilted towards offline, yeh kaise hoga?

Toh other way round hoga. It will tilt towards online.

Kyunki offline ke andar historical numbers ko agar aap plot karenge toh aapko dekhne ko milega ki yaar offline humne bahut tezi se expand kiye. Offline expansion se first year ke andar thoda sa EBITDA loss bhi aata hai, kyunki offline center gets profitable in second year and return of capital third year ke andar aata hai.

Toh humne pichhle 2 saal mein FY24, '25 mein 170 centers khole. Toh offline ki wajah se jo contribution tha losses ka woh peak time pe chala gaya hai.

Aage aane wale time mein next year hum 75 centers khol rahe hain jiske andar 45 Vidyapeeth centers hain, 10 Pathshala hybrid centers hain, aur 20 other centers hain jisme government exams aur hamare kuch subsidiaries ke centers hain. Toh the art of learning and art of opening a center and first year ke andar usko minimize losses se chalana, yeh playbook over the period of time improve hui hai.

Moving forward, hum sustainable growth offline ke andar karte rahenge. Revenue mix near equal hai, online ka 49% hai, offline ka 47% hai.

Yeh thoda sa online ki taraf tilt hoga. Kyunki ab jo humne hamare use of proceeds ke andar bhi mention kiya tha ki agle 3 saal mein hum 200 naye centers kholne wale hain.

Toh on an average hum 70 centers per year ki run rate se centers kholenge. Toh agle saal hum 75 naye centers kholne wale hain.

Of course, wahan pe ARPU zyada hai. Aur woh ek compounding story hai jo agle 10 saal tak chalti chali jayegi jiske andar hum centers kholte chale jayenge.

Aur wahan par operational efficiencies se bahut saara leverage abhi aana baaki hai. Toh we are just 3, 3.5-year-old company in terms of offline play.

Yes, that answers my question. Thank you so much, Prateek and Alakh, and all the best to the team for the next quarters and years.

Thank you.

Thank you.

Yeah. Hi.

Thank you for the opportunity and congrats on a good set of numbers. Just two, three questions.

The center growth has been pretty healthy. If you can just give us some sense of how are the centers say in the nine the last say 9, 12 months, how are they sort of tracking in terms of utilization, margins, et cetera?

Haan. Center growth jo hai, agar main aapko center ka unit economics ya box economics bataun, toh typical ek center ka box hota hai, uske andar 1,000 seating capacity hoti hai.

Woh do shifts mein ya sometimes three shifts mein operate karta hai. 2 to 2.5 CR ka jo hai investment se ek center start hota hai.

That is the capex investment. Isme leased centers hote hain hamare.

Aur pehle saal ke andar hum kuch 1,500 students ka admission lete hain aur -6% jo hai EBITDA ek typical offline learning Vidyapeeth JEE, NEET ka center humko contribute karta hai. Agle saal jab hamara admission, second year of operations mein jab 2,000 ho jaate hain, tab wahi center humko 6% ka EBITDA dene lag jaata hai.

Aur third year of operations mein anywhere between 13 to 15% EBITDA margins nikalne lag jaate hain third year ke andar 2,500 students ka admission ho jaate hain. Center jo hai do shifts mein operate karta hai.

Toh seat utilization is one metric which we closely follow ki kis kis tarah se hum seat utilization kar rahe hain, student-teacher ratio kya hai. Uske saath-saath kuch engagement metrics ki teacher ki rating kaise chal rahi hai, bachhon ka NPS kaise chal raha hai, learning outcomes kaise aa rahe hain, hum us city ke andar kaise results produce kar rahe hain, hum us city ke andar hamara result ka market share kis tarah se badha rahe hain.

Yeh saari key metrics kisi offline learning centers ko chalane ke liye hoti hain. Jo ki box unit economics are very tightly in place.

Business finance continuously monitors ki hamare rental percentage jo hamara for any new center signing jo rental hai woh ek typical threshold se neeche rahe. Us catchment ke andar ek definite online learners hon, kyunki hamara offline is linked to online.

80% of our offline admissions happens through online. Toh yeh saare processes humko ek badi unique offline company banate hain.

Humne jo offline ke andar 3.5 saal mein kiya, hamare competition ko 40 saal lag gaye woh karne mein, because they are traditional companies. Humne phygital learning centers banaye, tech-enabled offline learning centers banaye.

That's why we could rapidly scale our offline. Now year onwards, we will sustainably grow our offline learning centers chain.

Understood. Just one more question.

If you can just help us understand how do we think about the ARPU growth in the offline segment, right? For Quarter 2, what was given in the RHP, we had certain numbers, and now we have for 2Q.

How do we think about this sort of for the full year and going ahead? It's a question.

Right. A very good question.

I was expecting someone should see this change in pattern. Basically, ARPU jo hamara na Quarter 1 aur Quarter 2 ke andar measure karna sometimes that doesn't give you the true picture.

Kyunki kya hota hai ki ARPU, jaise agar aap dekh rahe hain hamara abhi ARPU jo hai woh somewhere approximately 22,000 rupees ke aas-paas aa raha hai. Aur woh aapko slightly decline dikh raha hoga last year se.

That is 4% decline from last year's ARPU. Toh iske do reasons hain.

Ek toh humne hamare offline ke andar kuch short-term courses introduce kiye jo ki 3 months, 6 months nature ke the. Toh of course jo 3, 6 months nature ke jo courses hote hain, woh kam price ke hote hain.

At the same time, Vidyapeeth ke ARPU ka poori clarity year-long picture se maloom chalti hai. Agar aap hamare offline ke play ko dekhein, toh hamare enrollments 30% se zyada hain.

Hamara revenue 22% se up hai in just our offline play. Aur jo yeh ARPU ka slight decline hua hai 4%, yeh short-term courses ki wajah se hua hai.

Because first half ke andar woh true picture aur true color nikal ke nahi aata hai, woh poore annual year ke andar nikal ke aata hai ARPU ka. To hold on ARPU as a metric on first quarter or second quarter or third quarter is not the right way we look at business.

We look at annual ARPU picture. Aur annual ARPU picture ke andar Vidyapeeth ARPU will be improved.

Addition to your point, agle saal se 1st April 2026 se hum hamare online business, hamare offline business ke EBITDA, ke profitability ko bilkul alag-alag karke dikhayenge, so that market will have a even more deeper and fair understanding ki how the business is shaping up.

Hi. Thanks for the opportunity.

Congratulations on a successful listing and a good set of numbers in 2Q. My first question is more of a clarification actually because you mentioned the 6% EBITDA margin for the offline business in second year and 13% the third year.

Just wanted to understand, are these pre-Ind AS margins, or these are the reported margins we are talking about?

These are the margins jo maine bataye sir, yeh box unit economics ke margins hain. Yeh I-GAAP, pre-Ind AS EBITDA margins hain jo hamari typical box design hota hai.

Toh first year mein -5%, second year mein +6%, aur third year mein +13% I-GAAP EBITDA deta hai.

This will include the rental cost and everything typically?

Haan, exactly. Rental, everything, central cost, everything.

Only ESOP adjustment we do in our I-GAAP EBITDA.

Perfect. The second thing I wanted to understand, obviously, this is the difference between your offline and online margins today.

I understand you have not disclosed it for certain reasons, but still, if I were to just go ahead and ask you, what would be the gap between the two business margins at a pre-Ind AS level? Also, how many offline centers today are profitable, again, at a pre-Ind AS level out of this 314 centers that you have?

Yes.

Yes. Just to clarify you, sir, ki humne hamare offline aur online ke margin levels ko separately kyu nahi bataya, kyunki jab humko number support karne hote hain toh is year ke har quarter ko last year ke har quarter se compare karna hota hai.

Last year us tarah ki accounting hamare yahan pe nahi thi ki cost was completely bifurcated between online and offline. Is saal hum completely track kar rahe hain aur 1st April se hum jo hai online aur offline ke business ko bilkul separately present karenge.

In terms of your question of margin profile of both the businesses, at a steady state offline business tends towards 13% EBITDA level. Aur online business ke andar hamari jo early exam categories hain, woh 45% EBITDA, I-GAAP EBITDA bhi de rahi hai.

Toh online and offline ko compare karna aapas mein, it's like apple to orange comparison hai. Because offline is a compounding story, is a higher ARPU story.

You can grow it for a longer tenure. Online, it's a very profitable story.

It's a cash engine for us. It's our internal cash cow.

Usi se hum saara hamara future expansion kar rahe hain. As well as future ke andar hum online aur offline ko integrate bhi kar rahe hain.

Online merged with offline karke ek bahut intelligent experiment hum abhi company ke andar drive kar rahe hain. Toh to give you steady-state margins of online business is somewhere between 35 to 45% EBITDA.

Steady-state margins for our offline business is 13 to 15% EBITDA.

That's very helpful. Just that double-clicking on the number of offline centers which you think would be profitable today?

I know it's a small time, but still.

So, 72 out of 111 centers of our Vidyapeeth, which is JEE, NEET offline, are profitable. Our offline is not just JEE, NEET.

Jis-jis exam category ke andar hum online ke andar market share mein dominance le lete hain, uska hum offline learning center start kar lete hain. Our JEE, NEET business contributes 65% of the total offline revenue.

Aur uske andar se almost 40% centers hamare abhi profitable ho gaye.

That's very helpful. The second question is regarding your offline center location strategy.

Since you are in the offline business for roughly around 3.5 years, my question here is, how do you identify centers, right? How do you locate them?

Do you just follow the competition and possibly put up a center there? Or there is some different strategy when you identify the location for a center?

Typically, between two centers, what could be the typical distance? Or any thoughts on those lines also.

Yeah.

Question number nine agar aap hamare shareholder letter mein padhenge toh aapko matlab kaafi detailed answer mil jayega. Just to emphasize at this point of time, yeh bahut hi data-driven strategy hoti hai ki kahan pe center kholna hai.

Hamara jo offline hai woh online se linked hai. 80% offline ke admissions online se hi hote hain, kyunki online ke andar toh hum almost 15 times more students padha rahe hote hain.

Aur agar kisi pin code ke andar hamare paas mein ek sufficient online learner base hota hai, toh us pin code ke andar jaa karke hum hamara offline learning center khol lete hain. Aur us saare pin codes ke online learners pe notification bhej dete hain, ek tarah se event kar dete hain, jisse saare bachhon ko centers ke baare mein awareness ho jaati hai aur bachhe wahan pe admission le lete hain.

Toh our offline is actually linked, it's a phygital, it's a linked to online. Toh isi strategy se hum naye centers kholte chale jaate hain.

Aur yeh us area ke demographics, competition, our internal data, in sab ko combine karke humne ek internal model create kiya hai aur us model se hum jo hai hamare offline learning centers kholte chale jaate hain.

Got it. One question on the average time spent by students on your platform.

I am asking this because, unlike a few other tech businesses where customers tend to stay longer with the platform, students would typically be on your platform or in your centers for a limited period of time. Typically, till now, what is the average number of years, months that students stay?

The related question to that is, how do you address the question with respect to constantly need to acquire new students every year? Obviously, right?

Both. Yeah.

Right. Very, very good question, sir.

See, first I'll address the last question which you have asked. Toh basically, bachhe ki journey kis tarah se hoti hai?

Typically, grade 9th, 10th, 11th, 12th ke andar abhi currently jo student hai apni life ka pehla digital course khareedta hai. Toh class 10th ka board hamare saath deta hai, fir woh jab class 11th mein aata hai, toh woh science ka agar student hai ya board ki preparation kar raha hai ya woh JEE ki preparation kar raha hai ya woh NEET ki preparation kar raha hai ya woh commerce ki preparation kar raha hai, toh uska course further hamare paas mein leta hai.

Fir woh class 12th mein aata hai, fir again ya toh board ya competition exam ki preparation karta hai. Jab woh college jaata hai, toh woh UPSC, SSC, Banking, Railways, CA Foundation, CA Inter, ya fir CAT ya GATE jaise examination ki preparation karta hai.

Toh that makes me a full stack company. Abhi hum yeh trend dekh rahe hain ki jo first digital purchase jo hai jo 9th, 10th, 11th, 12th mein hota hai, woh ab younger ages ke andar jaa raha hai.

Woh grade 6th, 7th, 8th ke andar hum ab first digital purchase ko hota hua dekh rahe hain. Toh LTV hamari company ka waise bahut high hai.

Agar aap isko koi commerce ya fir other e-commerce company se compare karenge, toh wahan par aapko dikhega ki yaar woh orders ki frequency bahut high hai. There are two metrics which makes us very unique as a company.

One is monthly active users to daily active users. I stand strongest as compared to any consumer internet companies ki kitna monthly active users is divided by my daily active users.

Second metric is average time spent by a user. Mere platform pe bachha, a paid user spends almost 100 to 120 minutes on a daily basis.

That makes me a very unique company. Mere paas mein bachhon ke itne zyada data points generate hote hain ki bachhe ka EQ kya hai, IQ kya hai, economic profile kya hai, uska kaun sa subject achha hai, kaun sa subject weak hai.

Toh that makes me, look fundamentally I am a teacher. I am a teacher, I am a digital teacher jisko mere bachhe ke baare mein sab kuch pata hota hai.

Toh jo yeh data hai, that is also very precious for us. Aur average time spent to do a e-commerce transaction or a quick commerce transaction is very less.

The number of data points us poori journey mein generate hote hain bahut limited hote hain. Toh agar aap dekhenge bachha bhale hi course ek saal ke liye le raha hai, par woh daily 2 ghante mujhe de raha hai.

Aur bahut saare data points us poori journey ke andar generate ho rahe hain. My MAU to DAU is the strongest in all consumer internet companies.

Got it. Just last one if I can just squeeze in.

This is with respect to what I have seen, correct me if I'm wrong. Typically, state board exams, commerce exams, or defense exams, they will have their own teachers who will have their own brand within a certain community of students.

Now, as you expand beyond NEET and medical or JEE, how do you address this question? Because typically, the edtech business are built around the brand of the certain personality.

Right, sir. Toh sir, humne isi ke around ek data-driven playbook create ki hai jiske andar jo hai har teacher class ke baad mein bachha us teacher ko rate karta hai.

Aur average teacher rating aur student engagement aur attendance hum continuously track karte hain. Aapne sahi kaha ki yaar yeh bahut hi agar state board ki baat karein toh Maharashtra alag hai, UP alag hai, Bihar alag hai, commerce wahan ka alag hai, yahan ka alag hai.

Toh hamare paas mein bhi ekdum regional teachers hum hire karte hain. For example, agar humko Maharashtra CET ki taiyari karani hai, toh hum Maharashtra jaa karke wahan pe hiring karenge aur continuously data se hum track karenge ki teacher ki rating kaise chal rahi hai, engagement kaisa chal raha hai, bachhon ke outcomes improve ho rahe hain ki nahi ho rahe hain.

Par at the same time, you have to understand ki ab har ek bachhe ke paas mein ek mobile phone aa gaya hai. Aur woh jo local teacher hai, those local teacher are still charging 15, 20, 25,000 rupees chahe main state board ki bhi baat karoon, minimum 25, 30,000 rupees toh woh saal bhar ka charge hi kar rahe hain.

Where my ARPUs of online is not even 10% of the local teacher. Jo teacher hamare paas mein hai, kyunki woh bahut hi high number of students padha raha hai, for example, my student-teacher ratio for my online business is 1:10,000.

Matlab 500 teachers mil karke 50 lakh paid students ko padha lete hain. Toh main apne teachers ko bahut high salaries bhi de sakta hoon, high growth trajectories bhi de sakta hoon.

Toh India ke one of the best talent in terms of teaching talent I will be able to attract because I am the largest education company at this point of time as well. Toh aapko agar apne local teacher se 10 times behtar teacher 10% price mein mil raha hai, aur woh bhi aapke mobile phone ke andar, toh that makes a great value proposition to have it with you.

Bahut saare bachhe usko primary learning ki tarah use karte hain jo afford nahi kar sakte, jo offline nahi jaa sakte, jo convenience chahte hain, jo ki online mein disciplined rehte hain. Kuch bachhe usko secondary learning ki tarah bhi use karte hain ki woh apne kisi offline learning centers mein jaa rahe honge, fir bhi woh hamara course le lete hain.

Wahi se magic hota hai. Jab jab bachha apne kisi aur doosre brand ke ya fir local brand ke saath mein offline learning center pe jaa raha hota hai aur woh hamara course le leta hai aur usko lagta hai ki yaar yeh toh 1/10th price ke andar bahut hi achha padha rahe hain aur inke padhane se mere marks improve ho rahe hain, tab that translates into great word of mouth.

Toh is tarah se aur achha education business wahi business hai jiske andar achha word of mouth ho. Aap bachhon ko achha padhaoge, unke bahut saare dost hain, woh unko jaake batayenge, aap apne aap grow hote chale jaoge.

Did I answer your question?

Got it. Yes.

Just a slight question regarding that, what would be the average tenure of a teacher staying with you? Is the retention very, very high given that you said you rate them and you gauge them and so that helps you better align it with your interest?

Haan. Sir, to answer this question, we have actually taken in our shareholder letter question number 16.

You can go through that. Basically, retention numbers ko humne is baar bifurcate karke dikhaya ki hamare lecture faculties ka kya retention hai aur hamare overall faculties ka kya retention hai.

Toh faculties ke andar lecture faculties hote hain jo bachhon ko padhate hain. Unka retention number 15 to 17% ke upar hai jo ki industry standard hai.

Sorry, attrition keh raha hoon main. Attrition 15 to 17% hai hamare lecture faculties ka.

Since we are an online company, hamare yahan pe content creators, doubt solvers, subject matter experts, online doubt solving ka bhi bahut bada workforce hota hai. These are support teachers.

Toh generally support teachers ke andar attrition hota hai because yeh bahut hi entry-level aur first job hoti hai bahut saare talent ke liye. Par 15 to 17% ka attrition in a lecture faculty is somewhat industry standard.

Online ke andar yeh number further kam hai. Ab iske do primary reason hote hain teacher attrition ke.

Ek ki teacher ka performance ki average rating nahi aa rahi hai. Aur woh hamare liye North Star metric hai.

Uske saath mein hum bilkul compromise nahi karte hain, because student ki life ka woh year bahut hi precious hai. Toh agar woh teacher ratings improve nahi hoti hain, toh we have to let go our teachers.

Aur uske andar we have dedicated SOPs ki pehle teacher ke saath mein kaam karo, usko improve karwao, 3 to 6 months ka chance do. Agar woh number nahi hota hua improve dikhta hai, toh fir humko call lena padta hai.

Second, abhi AI ki wajah se bhi content experts, doubt solvers ke andar kaafi efficiency kick in ho rahi hai. Is wajah se wahan par bhi thoda sa yeh number is saal halka sa matlab 15% se 25% last quarter last year ke H1 se is saal ke H1 mein 27%, 2% badhta hua dikh raha hai.

Macro ke andar nothing is changing. It is driving higher student engagement only and it is driving higher bottom line as well.

Got it. Thanks a lot for taking the time out and answering my questions.

All the best.

Hey. Hi.

Thanks for the opportunity. Just a couple of questions from my side.

First, would you have any sense of the average annual incomes of the parents of the students who enroll with you, especially in offline?

We are a Bharat story. We are a complete Bharat story.

Agar aap hamare online ke audience ko dekhenge, toh hamare internal surveys kehte hain ki 67% students jo hain woh sirf aur sirf hamare se padh rahe hain aur this is the market we have created. Yeh market pura unorganized tha.

Yeh bachhe sirf exams ke form bhar rahe the aur inke paas mein good quality teaching ka access nahi tha. Toh we are a creator of this market aur iske andar toh hum market expansion theory kar rahe hain.

Offline ke andar jo hamare Vidyapeeth ke jo ARPUs hote hain aur jo overall ARPUs hote hain, woh upwards of 40,000 rupees per annum hote hain for entire offline put together. Humne exact economic profile nahi kari hai, but currently we are working on a population scale.

Aur generally jo economic background offline ke parents ka hota hai, woh thoda behtar hota hai online se. At the same time, agar aap India ko dekhenge, toh India ke andar per household jo spend on education hai woh 4 se 5,000 rupees hai.

Aur with our GDP growth, yeh number badhta chala ja raha hai, because education is a non-discretionary spend. Every new rupee coming to the family, the first right goes into the kid's education.

That makes us a very, very unique company. Matlab lower-middle-class India grocery se zyada education pe kharch karna chahta hai.

Understood. Just from a TAM perspective, right, what would you think is your current penetration in offline?

Where can it go to?

Haan. Humne hamare shareholder letter ke andar na TAM ka question number five pe bahut detail aur bahut beautifully explain kiya hai.

Toh hamari early exam categories jo humne 2020 mein start kari thi, jinko hum 5 saal se chala rahe hain, wahan par humne 20% market share le liya hai. Yeh market share jo hai Hindi heartland mein kaafi strong hai.

Hindi heartland mein yeh 30 to 40% pe hai. Central aur Southern India ke andar yeh less than 10 and less than 5% respectively hai.

Toh there is a headroom to expand our JEE, NEET categories by 100% in upcoming years. At the same time, jo hamari early exam categories hain, civil services, government exams, CBSE boards, ICSE, GATE, state boards exam categories, yahan par toh hamara market share less than 1% hai abhi at this point of time pe.

Overall agar hum TAM dekhte hain, toh hamara market share sirf 2% hai, less than 2% hai. We are just barely scratching the surface.

Aur offline penetration ke andar agar hum dekhein, toh hum in this industry hum number fifth player hain at this point of time. Hamare se upar chaar aur player hain.

I am fastest-growing offline brand in the country at this point of time. Toh offline ke andar toh main number fifth pe hoon.

Jo top chaar player hain, put together woh 2 billion ka revenue karte honge approximately. Mera market share in terms of revenue 7, 8% hi hai at this point of time pe, but hum log bahut tezi se grow kar rahe hain.

Aur thoda sa woh market fragmented bhi hai. Wahan pe consolidation ki bhi opportunity hai.

At the same time, as I told before, buy versus build, we prefer to build from scratch. Aur my offline is very unique, which is linked to online.

80% of the admissions happens from my online learner base only.

Yeah. Understood.

I also wanted to understand, what are your thoughts on getting into the jobs exams categories, say things like GAIL exam or SAIL exam or Railways exams, et cetera? Do you see that as a category where you would like to expand into the future?

If so, what is the additional TAM that you can get from that?

Government state exam we have already ventured, and we are seeing a good traction. Uske offline learning centers bhi humne start kar diye hain.

Aur for example, agar Railway ki opening nikalti hai toh Group D ke andar 90 lakh bachhe tak apply karte hain. UP Constable ki jab opening nikalti hai toh usme 20 se 30 lakh bachhe tak apply kar lete hain.

Toh yahan par toh humne venture kar liya hai aur yahan par humko achhe growth trajectories abhi dikhayi de rahe hain, both in offline and online. Overall revenues are increasing at a good, very healthy rate.

Toh government jobs ki taiyari toh hum karane lag gaye hain, chahe woh UPSC jaisa exam ho jisme aapki IAS ki job lagti hai versus aapka ek Constable, Daroga, Patwari jaisa exam ho. Toh yeh toh humne venture kar liya hai.

Skilling courses, private jobs abhi bahut hi initial stages aur 0 to 1 ki journey ke andar hain. Wahan par hum woh 0 to 1 aur hamara product market fit ko strengthen kar rahe hain.

GAIL exam, SAIL exam, since you have mentioned, woh GATE ke exam ki taiyari ke through hum cover kar rahe hain. Toh wahan par humne foot in the door rakh diya hai, product market fit aa gaya hai, aur ab woh growth stage ke andar jayega.

Understood. How do you

Yeah. Sure.

Thanks.

Hello, am I audible?

Haan. Hi, sir.

Congratulations on a good set of numbers. Sir, mujhe yeh poochna tha ki apni advertisement and publicity expenses I think close to around 40% se badhi hai.

Toh what could be the reason? Vishwas Diwas pe kitna spend karte hain?

Matlab overall ek ballpark figure jaisa.

Sir, Vishwas Diwas is an event. Wahan pe koi marketing spend nahi hota.

Bas woh us event ko conduct karne ka jo bahut bare minimum expense hota hai. Toh basically, is saal humne marketing ka jo cycle hai usko change kiya hai.

Toh pehle hum uniformly har quarter ke andar spend karte the aur uska humko return of advertisement revenue nahi mil raha tha. Toh humne kaha jo hamare growth months hain jahan pe hamare maximum enrollment hote hain, hum wahan par hamare spends ka concentration zyada rakhein.

Toh Quarter 1 aur Quarter 2 ke andar jo aap yeh number dekh rahe honge, poore H1 ke andar jo number around 10% ke aas-paas aa raha hai. Year end tak jab aap yeh number dekhenge hamara overall marketing spend, woh 8 se 9% is saal rehne wala hai jo ki last year 9.6% tha.

Toh poore saal ke andar jo hai yeh goodness aap humko de dega. Yehi ek reason tha ki iski wajah se thoda sa relative profitability of H1 is little less as compared to the last year, kyunki humne yeh cycle shift kiya hai marketing spend ka.

Aur H1 ke andar humne relatively thoda sa zyada spend kiya hai. Quarter 1 ke andar yeh number 14% tha, Quarter 2 ke andar number yeh 8% aa gaya.

Overall H1 ke andar yeh around 10% hai. Poore year ke andar yeh number jo hai 8 to 9% rehne wala hai.

Aur we are very organic company. Humne historically kabhi bhi double-digit percentage of marketing spend nahi kiya hai aur aage aane wale saalon ke andar bhi hum yeh nahi karne wale hain.

Toh hum communities banane mein believe karte hain, free padhane mein believe karte hain, aur wahi se bachha jo hai hamare paas mein mobile app pe aata hai aur hamare paid courses khareedta hai. Matlab we are a word-of-mouth company.

Okay. Usually yeh admission ke pehle hi hum log marketing spends karte rahenge na ya results ke aane ke baad?

Yeh do time pe hi hota rahega na, sir?

Haan. Sir, admissions aur results na dono same time pe hi ho rahe hote hain.

Toh jo hamara Quarter 1 aur jo Quarter 2 hota hai, wahi pe marketing spends ka concentration zyada rahega. Quarter 3 aur Quarter 4 ke andar kyunki admissions ho gaya hai, classes chal rahi hain, marketing spends ka zyada return aata nahi hai.

Toh yeh jo hai hume thoda late samajh mein aaya. Toh humne is saal se marketing spends ke cycle ko thoda sa tweak kiya hai.

Aur yeh Quarter 1 aur Quarter 2 mein hi rehne wala hai.

Sir. Sir, aur attrition rate jo 25% se 27% jump hua hai, toh that 2% aap sir bol rahe ho woh support staff ke regarding hi hai ya if any new education category mein we are seeing any hiccup sort of a thing?

Nahi, sir. Humne abhi tak kisi bhi category ko shut down nahi kiya hai.

Aur education is a compounding story. 2, 3 saal ke andar agar koi category nahi perform kar rahi hoti hai, perform karne lag jaati hai, because agar woh playbook JEE, NEET mein chali hai, toh baaki jagah bhi chalegi aur humne prove bhi kiya hai yeh cheez.

Toh yeh 25 to 27% hai, iske andar AI is one of the reason. Thoda sa doubt faculties, support staff, un sab ke around jo hai hume AI ki wajah se subject matter experts hain ab unki utni zaroorat nahi padi.

Toh jo natural attrition ho raha tha, usko humne backfill nahi kiya. As well as agar aap dekhenge, toh lecture faculty ka jo attrition hai woh 15 se 17% ke beech mein hai hamara, jo ki industry standard ke comparison ke andar theek number hai.

Aur wahan pe jo attrition hua hai 15 se 17% jo lecture faculty ka hua hai, woh unki academic performance aur unki ratings ki wajah se hua hai.

Sir. Wish you all the best, sir.

Thank you so much.

Thank you, sir.

Hi, sir. Pehle quarter ke liye badhai mere taraf se.

Ek question tha, sir. Offline centers mein aapke physical centers kaafi grow hue hain, almost 70% growth hai.

Lekin unka goodness revenue mein translate nahi hua hai abhi tak. Agar main H1 ka bhi revenue dekhun ya yeh quarter ka na dekhun, toh sirf hum 25% ke aaju-baaju grow kiye hain.

Toh offline business mein full year mein agar aap yeh samjha sakein ki hum growth kaise samjhein, kyunki center growth aur revenue from offline center mein kuch connection hoga. Toh woh aage jaa ke aayega ya agle varsh aayega?

Thank you.

Hi, Akshen. Thank you so much.

Alakh here. Pehli baat toh yeh ki this is not the right way to look at it, kyunki abhi H1 ke andar na apna collection aata hai.

Revenue hum log ka accrue hota rehta hai. Toh woh goodness aapko H2 ke andar poore year mein dikhti hai.

Woh H1 ke andar itni dikhayi nahi padegi, kyunki fees hum pehle le lete hain saal ke starting mein, fir usko accrue karte rehte hain, first thing. Second thing, aapko jo dikh raha hoga ARPU mix thoda change dikh raha hoga offline ke andar.

Jabki enrollment ke andar aap dekhoge toh approximately mere khayal se 30% jump enrollment ke andar aapko dikh raha hoga. Woh ARPU mix isliye change hua hai kyunki ek toh we are not only doing JEE, NEET.

We are doing other exams as well. Hum dheere-dheere expand kar rahe hain.

Pehle hum sirf JEE, NEET karte the. Toh initially 100% JEE, NEET offline tha.

Abhi aap offline ke andar bhi dekhenge toh 66% hamara JEE, NEET bacha hai. Ab hum other exams karte hain like government exams hote hain, UPSC exams hote hain.

Toh bahut saare aise exams ke andar na short courses hote hain, 3 mahine ke, 6 mahine ke. One-day exams jo hote hain like bank exams ho gaya, SSC exams ho gaya, nursing exams ho gaya.

Toh wahan 3-3 mahine, 4-4 mahine ke course hote hain. Is wajah se wahan pe ARPU kya hota hai thoda sa kam hota hai, fees kam hoti hai.

Coming to your point ki kis tarah se iski profitability dikhegi, kaise dikhegi, toh isko main aise dekh sakta hoon ki meri jo early category hai which is IIT, NEET ki category jo hamari hai, jisko hum offline karte hain usko hum Vidyapeeth bolte hain, toh woh abhi category margin level pe is saal hi profitable hamari ho chuki hai. Aur rest of the categories are too young.

Abhi-abhi recently humne start kiya hai. Toh aap typically samajh lo jaise hamari JEE, NEET ki jo offline centers hote hain, woh 18 months lete hain to become profitable and it takes nearly 24 to 36 months, 24 to 30 months aap le lo, return of capital ka lete hain.

Other categories also take 12 months to get profitable. Abhi hum log dekhe toh hamare offline ke andar jo profitability hai woh category margin level pe aa gayi hai.

Woh EBITDA aur PAT level pe I think FY27 will be EBITDA level profitable in our complete offline, and '28 it will go to PAT or something. '27 hume woh year dikkh raha hai jahan hamara offline bhi EBITDA level pe profitable hoga.

Okay. Top line pe, sir, profitability mein samajh gaya ki advances aa gaye, usse aa jayega.

Jaise top line 25% hai, aapke base mein I would have thought ki offline grow thoda zyada karega. Toh yeh jo pickup in growth hai woh second half mein hoga aapke hisaab se ya yehi 25, 30% pe grow karega offline business?

Nahi. 25, 30 pe hi karega.

That is what we have been assuming since last one year. Aur it's something that is strategic and that we know.

Hamari online jo hai uski growth jo hogi woh surpass karegi offline ko, kyunki offline ke andar the brand was very strong in the last three years. Toh humne apne jitne bhi Hindi heartland the jahan hamari brand presence thi wahan pe humne centers starting ke three years mein humne open kar diye the.

That was a conscious call. We didn't want any competitor to take our place.

Toh humne woh wale centers already open kar diye the jahan pe aap dekhoge toh offline ki growth aapko 50%, 40% type dikh rahi hogi. Abhi yahan pe jo offline ki growth hai woh sustainable growth rahegi and that will be 25, 30% hi hogi.

Okay. All right, sir.

Thank you and all the best for the rest of the year.

Thank you, Akshen.

Hello, sir. Good morning to the team.

Sir, I looked at the numbers, and jo other income wala part hai, usme thoda sudden spike nazar aaya hai is H1 ke numbers mein. Toh if you could elaborate on that.

Sir, which particular other income we are talking about? Achha, that is the other income you are asking, hamara jo revenue split hai poora.

Okay. Toh sir, kya hai na ki hum jaise-jaise hamari brand strong hoti gayi, we started tying up with schools and institutions for their academic books.

Toh hamara ek in-house vertical hai content ke around jahan pe hum PW Academy karke chalate hain usko. Schools ke andar hum books supply karte hain.

Toh close to I think 3,000 schools ke andar hum log books bachhon ko dete hain, toh wahan pe yeh jaata hai. Revenue split aap dekhenge toh I think close to 49% is right now from online aur 47% hamara offline hoga.

4% is others. Yeh others ke andar thoda sa yeh spike dikh raha hai, yeh kitabon ki wajah se dikh raha hai jo schools mein jaa rahi hai.

Okay. Sir, offline ko leke mera question tha.

Offline pe jo growth rahi aapki woh kaafi consistent rahi hai, but wahan par jo aapke prices hain woh baaki players se kaafi kam hain. Toh how do you see ki woh kaise profitable banega kyunki baaki jo cost hote hain, for example, cost of leasing and cost of running a center is almost similar for everybody.

How do you think you would make it profit?

Haan, nahi nahi. Sir, that's a good point.

Actually kya hai ki iske andar sabse first point yeh hai ki hume apne cost ke hisaab se apne box ko design karna hota hai. Toh we are rightly placed in offline as well.

Toh jo bahut hi premium player hain, woh humse 40% up charge karte hain. That give us the lever ki hum us price point tak bhi at one point of time pahunch sakte hain.

Baaki iske baad jo two remaining second, third players hain, unme hum bhi aate hain jo is price ke aas-paas hain. Hum bahut hi low price bhi nahi hain.

IIT, NEET ke andar jo hamara ARPU nikal ke aata hai, woh close to 60,000, 62,000 ke aas-paas hamara ARPU nikal ke aata hai IIT, NEET ka, which is not very low. Very top players ko agar aap chhod do, one or two players, toh uske baad hamara ARPU bhi is a good ARPU.

Aisa nahi ki hum bahut saste hain. We never say that we are affordability in offline.

Hum affordability story leke offline mein nahi jaate hain. Offline mein hum leke jaate hain experience story ko leke, result story ko leke jaate hain.

At this ARPU of IIT, NEET 60,000 hamari picture fair ban jaati hai. Usko hum split dekh lete hain ki 35% jo ho raha hai revenue ka, woh teacher cost hona chahiye.

Teacher cost should be less than 35%. Jo rental hai woh 12 se 14% tak hona chahiye.

Student-teacher ratio jo hamara hai woh baaki brand se bahut achha hota hai. Student-teacher ratio yeh hota hai ki ek teacher kitne bachhon ko padha sakta hai.

Toh hamara pehle year ke andar hi student-teacher ratio goes to what, 68, 69 aur fir agle year woh 75 pe jaata hai, fir 82 pe jaata hai, fir 90s pe jayega. Toh student-teacher ratio is one thing jiske around hum play kar paate hain.

Iske alawa jo shifts hoti hain, that is the seat multiplier. We play around that seat multiplier.

Jitne bhi abhi tak ke offline player hote the, no one has designed the box model so perfectly like PW, kyunki kisi ke paas bhi centralized control nahi tha. Iski itni clear pictures nahi hoti thi, business finance nahi hota pata.

Toh hamare andar jo shifts hoti hain, how many times you can utilize a single seat, usko hum log agar dekhein, toh us multiplier ko hum 2.1, 2.2, 2.3 tak leke aa chuke hain. Isko hum log aage 1.9 pe currently stand kar raha tha last jo hum log ne report kiya tha, abhi 2.1 ke aas-paas chal raha hoga.

Toh this will go to 2.5 aur 2.25 pe jaate hamara jo center hota hai woh 15% profitability ke aas-paas aa jaata hai. Iske saath-saath humne jo hamari sabse badi offline ki cost hoti hai, this is very interesting, toh offline ka the major cost of any education business is teachers.

Toh hamare jo offline ke andar teachers hote the, toh earlier the trend was ki industry se hi log teachers hire karte rehte the aur lagataar un teachers ki salary badhti jaati thi. Jab results dene hote the aapko, hire karte waqt aapko ek pop dena hota tha.

Toh humne woh trend band kiya. Humne apne ARPU ke hisaab se apne teacher design kiye.

We designed a unique program called Faculty Training Program, jahan hum Bharat bhar se saare teachers ko social media ke through bulate hain, woh hamare centers pe aate hain. For a single form floated for a vacancy of 300 people, we get 30,000, 40,000 odd people applying.

Woh hamare centers pe aate hain, test dete hain, fir hum unko train karte hain, fir unko hum doubt teachers banate hain, fir unko hum content teachers banate hain, aur 6-7 mahine ke andar unko fir hum padhane ke liye utaar dete hain. These teachers enter at a very low salary compared to the industry salary kyunki yeh young hote hain, freshers hote hain.

Aur yeh teachers ko hum faculty training, FTP bolte hain, faculty training program se aaye hue teachers. Yeh woh teachers hain jinki salary 10 lakhs se kam hoti hai.

Toh FTP ka jo mix hai overall faculty ke andar, earlier it used to be 10%, agle saal usko humne increase karke 18% ke aas-paas kiya, abhi 27% ke aas-paas hain, toh this will go to next year 35%. Toh is FTP mix se bhi overall hamara jo cost hai woh bahut achha manage ho jaata hai.

Students are very happy with these young teachers, fresher teachers, kyunki most of the students jo aate hain woh bahut hi weak hote hain, toh unko bahut primary handholding chahiye hoti hai jo ki fresher teachers, young teachers unko zyada better samajhte hain.

Sir, one final question. Online mein aapke paas clear winner hai, aapke paas pedagogy set hai, and you're growing at a very fast rate.

Offline mein you said ki tech-enabled classrooms hain, what are you doing different wahan par? Kya winner hai aapke paas ki bachhe abhi aa rahe hain plus?

Dekhiye, sir, we're rightly placed ki online ke andar jo hamara moat hai woh sabse bada hamara content hota hai, teachers hota hai, pricing hota hai, technology hota hai. Toh offline ke andar I think the first thing jo mujhe feel hota hai, is the brand we have.

Toh right now if you see lot of parents know other brand because hum bahut naye hain. Par yahan se agar main aage aane wale 3 saal dekhun, toh parents koi aur education brand jaan hi nahi rahe honge PW ke siva, because we are expanding like anything, we are reaching to every household.

Aaj ek seventh class ka bachha mera online course pehle hi khareed leta hai. They don't know XYZ other brands.

Toh jab woh class ninth pe pahunchta hai, tenth pe pahunchta ya grade 11th pe pahunchta hai, the first education brand that they know is PhysicsWallah. Toh sabse pehle toh mere paas funnel sabse strong hai jo kisi ke paas nahi hai.

Grade 6th, 7th, 8th mein we don't do segment reporting, but what I remember we teach close to 1.5 lakh paid students grade 6th, 7th, 8th ke andar, jahan pe koi aur brand present hi nahi hota hai. Toh sabse pehle toh mujhe funnel ka advantage milta hai ki bachha sabse pehle mere paas aata hai.

Second agar main dekhun ki kya main different kar raha hoon baakiyo se, toh mujhe lagta hai content standardization through this smart boards and technology main kar paata hoon. Jaise aap kisi bhi aur offline ko dekhoge, toh they cannot do standardization in each of their classrooms kyunki the management team or the central team has no control over what the teacher is teaching in a particular classroom.

Main yahan baith ke abhi Mumbai ke andar mera teacher is time subah ki class mein kya subject padha raha hoga, kya topic padha raha hoga, kya question kara raha hoga, main woh decide kar sakta hoon, main woh check kar sakta hoon. Toh hamari jo PPTs hoti hain woh sabhi smart boards pe same flow hoti hain har ek cohort ke liye, har ek classes ke liye, aur teachers usko padhata hai.

Iske baad kya hai ki hamara teacher jab bachhon ko ek classroom mein lecture deke aata hai, uske baad har ek bachhe ko har class ke baad uski rating karni hoti hai, which is online. Toh mere paas bahut clear visibility hai ki mere kitne teachers hain jo 4.5 ki rating ke neeche hain, kitne teachers hain jo 4 ki rating ke neeche hain jinko mujhe replace karna hai, improve karna hai.

Iske saath-saath hamara teacher classroom mein jo homework deta hai na, toh agar aap offline coaching mein jaate hain toh aapke bachhe ko jab homework milta hai, toh bachha ghar aake homework solve karta hai, next day aake class mein baith jaata hai. Par teacher ko pata hi nahi chalta kis bachhe ne homework solve kiya, kisne nahi kiya, kyunki classroom ke andar 60 se 70 bachhe hote hain.

Humne kya kiya hai ki us bachhe ko homework digitally bhi attempt karna hota hai. Toh us classroom mein jaane wale woh chaar teachers, chhe teachers ko us classroom ka dashboard pura dikhta rehta hai ki mere bachhon ne homework mein kitne questions sahi kiye, kitne galat kiye, kitne chhod diye.

Toh usko bahut clear idea hota hai cohort ka ki aaj class mein mere kaise perform kiya. Uske according woh apni aage ki class ko proceed karta hai.

Iske alawa ek-ek bachhe ka bhi jo data analysis hum karke baithte hain ki usne kitne questions kiye homework ke andar, kitne sahi kiye, kitna time liya, tests ke andar uske kaun se topic weak hain, kaun se strong hain, toh in sab ka digital footprint jo mere paas hota hai woh other offline ke paas nahi hota hai. Other offline ke andar bachha ek baar agar offline center se ghar chala gaya, toh uske baad doubt nahi pooch sakta.

Hamare yahan bachha jab ghar pahunch jaata hai, uske baad bhi agle 7 ghante, 8 ghante woh hamare platform se connected hoke lagataar doubt poochta rehta hai. Toh I think the strong brand funnel gives us the students in the very beginning, but after that jo hamare strong control hai over the content and the quality, that keeps the engagement.

Okay. Makes sense.

Thank you, sir, and best of luck for the next quarters.

Thank you so much everybody for joining the first PhysicsWallah investor and analyst call. We look forward to seeing you on the next call.

Thanks so much.