PhysicsWallah shares surged 6% after Motilal Oswal initiated coverage with a ‘Buy’ rating and a ₹200 target price
The brokerage sees strong growth potential in PhysicsWallah’s online business, supported by rising paid users, new categories and AI-led monetisation
PhysicsWallah’s Q1 FY27 revenue rose 24.4% YoY to ₹1,054 Cr, while its net loss narrowed 30.5% to ₹88.3 Cr and EBITDA turned positive at ₹52 Cr
Shares of edtech major PhysicsWallah jumped as much as 6% to touch an intraday high of ₹127.80 apiece on the BSE today after brokerage firm Motilal Oswal initiated coverage on the company with a ‘Buy’ rating and a target price of ₹200.
The stock later pared some of its gains and was trading 5.3% higher at ₹127 apiece at 11:00 IST. The company’s market capitalisation stood at ₹36,768.7 Cr ($3.8 Bn) at the time.
The broader market also traded in the green amid positive global cues, as expectations of a US Federal Reserve rate hike eased. IT stocks further supported the gains. The BSE Sensex was up 0.74% at 76,713.19, while the NSE Nifty 50 was trading 0.36% higher at 23,959.60.
Motilal Oswal said PhysicsWallah has built one of India’s largest education communities, with its YouTube channels cumulatively having more than 100 Mn subscribers. The brokerage added that the company’s revenue grew at a CAGR of around 74% between FY23 and FY26.
According to the brokerage, PhysicsWallah’s YouTube-led model allows it to build a large funnel of prospective learners, acquire students at structurally lower costs, and convert them into paying users across its online, hybrid, and offline offerings.
It expects PhysicsWallah’s online revenue to grow at a CAGR of 28% between FY26 and FY30, driven by an increase in paid users, expansion into new education categories, and AI-led monetisation.
The brokerage also expects the company’s pre-Ind AS EBITDA margin to expand from 26% in FY26 to 30% by FY28, aided by cost efficiencies and operating leverage.
The brokerage said India’s ₹15-₹16 Lakh Cr education market offers significant headroom for online growth. While online penetration in categories such as JEE and NEET stands at around 20%, it remains below 1% in segments such as foundation courses, state boards, and government exams.
However, it flagged rising competition, weak execution and centre utilisation in the offline business, faculty attrition, and regulatory changes as key risks.
Founded in 2020 by Alakh Pandey and Prateek Maheshwari, PhysicsWallah provides online, offline, and hybrid learning programmes across test preparation, skilling, higher education, and school-level categories.
PhysicsWallah’s Q1 FY27
PhysicsWallah’s operating revenue grew 24.4% YoY to ₹1,054 Cr in Q1 FY27, while its net loss narrowed 30.5% to ₹88.3 Cr. The edtech company also turned EBITDA positive at ₹52 Cr, compared with a loss of ₹21 Cr in the year-ago quarter. Adjusted EBITDA rose more than fivefold to ₹135 Cr.
Online revenue grew 33% YoY to ₹549 Cr, while revenue from K-12 and early learning jumped 88% to ₹105 Cr. The company said the postponement of NEET UG affected collections in Q1. However, collections rebounded 51% YoY between July 1 and August 13.
Cofounder Maheshwari said the company was confident of achieving PAT profitability at the group level in Q3 FY27, which is typically its strongest quarter.
PhysicsWallah also reported an exceptional impact of around ₹42 Cr due to the fair-value remeasurement of financial instruments linked to Sarrthi IAS. The company increased its stake in the UPSC coaching institute to 51% in July.