India EdTech Market to Triple by FY28: Growth Drivers & Key Players

India’s EdTech market is projected to triple from ₹13,200 crore in FY23 to ₹41,450 crore by FY28, demonstrating a 26% Compound Annual Growth Rate (CAGR). This significant expansion is driven by key government initiatives and policy changes.

The National Education Policy 2020 aims to elevate the Gross Enrolment Ratio in higher education to 50% by 2035. Government programs actively promote technology-led and flexible learning models, extending the market beyond traditional online courses to university partnerships and skill development programs.

PhysicsWallah’s Strategic Growth

PhysicsWallah, a prominent educational technology company, reported 24.4% year-on-year consolidated revenue growth to ₹1,054 crore in Q1FY27. This increase was primarily due to an 11-12% rise in Average Revenue Per Student (ARPU).

Its online segment, encompassing coaching, digital learning, and book sales, remains the sole profitable area, growing 33.2% year-on-year to ₹548.8 crore in Q1FY27. Management targets this segment to contribute 55% of total revenue within the next three years.

Conversely, the capital-intensive offline segment, including Vidyapeeth centers and hostel accommodations, continued to be loss-making. However, its EBITDA losses narrowed by 47.5% to ₹27.2 crore in Q1FY27.

PhysicsWallah management anticipates over 30% consolidated revenue growth for FY27 and aims to achieve full-year consolidated net profit. This target relies heavily on bringing the offline segment to breakeven, alongside developing an AI-based revenue stream leveraging its 35 lakh daily active app users.

Veranda Learning’s Profit Surge

Veranda Learning, an integrated learning platform, showcased robust financial performance in Q1FY27 with a 42% year-on-year revenue from operations growth to ₹150 crore. This was fueled by a 35% increase in student enrollments.

The company’s net profit surged by 476.3% to ₹34 crore during the same quarter. Veranda Learning has also become a free-cash-flow-positive entity.

Strategic expansion includes growing its commerce segment through digital delivery formats and doubling its managed commerce college footprint. The company is localizing its RACE test preparation brand in Karnataka and entering preschool managed operations within the K-12 segment.

Veranda also significantly reduced customer acquisition costs, with advertising expenses dropping from 31.2% of revenue in FY25 to 4.8% in FY26. Finance costs were cut by 67% to ₹8.7 crore due to balance sheet deleveraging.

Jaro Institute’s Higher Education Focus

Jaro Institute of Technology specializes in online higher education, operating through partnerships with 33 institutions. These collaborations include prestigious names like IIMs and IITs, structured via long-duration contractual agreements.

The institute manages the entire program lifecycle, from marketing to online delivery, on a fee-share basis. This model supports its focus on comprehensive online learning solutions.