NEW DELHI, Feb. 6 -- PhysicsWallah built its business by fixing what India's school system often does not, helping students crack high-stakes entrance exams such as JEE and NEET. Now, in a counter-intuitive next phase of growth, the edtech company is betting that the only durable way to improve coaching outcomes is to go back and fix school education itself.

On its earnings call on Friday, the Noida-based firm laid out plans to push deeper into the K-12 segment, arguing that earlier intervention in a student's learning journey will translate into stronger academic outcomes.

While K-12 currently contributes less than 1% of revenue, top executives said they believe school education could eventually overtake the company's core test-prepara...