Vedantu's financial performance and path to profitability in FY26

The online education space has been competetive in past few years, with BYJU's collapsing and Unacademy sold to Upgrad. Despite the presence of other institution, Vedantu managed to grow its revenue and improve its operating metrics in FY26. 

 A Banglore based company edtech unicorn's revenue from operations grew 17.6% to Rs 267 Cr in FY26 from Rs 227 Cr in previous fiscal year, its financial statments were reviwed by Entrackr.

The main source of largest revenue came from tuition fees, growing 16.8% to Rs 222Cr from Rs 190Cr in FY25. Revenue from books, uniform and other products increased 31.8% to Rs 29 Cr, online learning project income stood at Rs 6.3 Cr during last fiscal year.

With non operating income of Rs 3.8 Cr, the firm posted a total income of Rs 270 Cr in the fiscal year ending of March 2026.

The expensive side is employee benefits, largest cost componenet declined 12.8% to Rs 191 Cr in FY26 from Rs 219.5 Cr in FY25. It also includes Rs 7.2 Cr as ESOP cost non cash. Contract and out sourced resources costs surged 54.3% to Rs 71Cr while depreciation expenses declined 5.8% to 65 Cr. Advertising and promotional expenses increased to 7.4% to Rs 29 Cr, wheras technology expenses stood at Rs 12 Cr. Overall total expenses of vedantu remained flat Rs 442 Cr in FY26.

With decent growth and stable expenses, vedantu's loss decreased by 18.6% to Rs 171 Cr in FY26, compared to Rs 210 Cr in FY25.

Note: we have excluded exceoptional income and expenses arising from changes in the fair valuation of consideration payable in both FY25 and FY26 to present a clearer picture of the company's financial performance.

Vedantu is showing signs of becoming a healtheir business after facing difficulties in the edtech. Vedantu has improved better financial performance to control expenses compared with its operating revenue performance.

As of March 2026, it has Rs 77.25 Cr in cash and bank balances and Rs 160 Cr in total current assets. The competition has reduces as Byju's has collapsed and unacademy has reduced its operations and only physics wallah is now a major competitor.

Vedantu raised $11 million from investors in spetember 2025 to strenghthen its business and compete with PW. Vedantu is trying to grow revenue without increasing expenses too much. It may achieve a major improvment by FY27 or FY28.

Physics wallah becoming a public company may not necessarily be a disadvantage for vedantu. Vedantu is still a private company, so it may have more freedom to explore business opportunities without facing daily stock market pressure.