PhysicsWallah Lists Strong, But Can the Momentum Hold?

PhysicsWallah’s entry into the public markets delivered a strong first-day signal for India’s edtech sector. The stock opened at ₹145 on the NSE, a 33 per cent premium to its issue price of ₹109, and at ₹143.10 on the BSE, before touching an intraday high of ₹162.05. The listing pushed the company’s market value to around ₹43,453 crore and positioned PhysicsWallah as a notable new entrant among recently listed digital-first companies.

What the Debut Suggests for Edtech Demand

For an industry that has seen fluctuating sentiment over the last three years, the early response to PhysicsWallah indicates that investor appetite for scaled learning platforms has not disappeared. The company’s journey from a YouTube channel to a national hybrid operation has shaped expectations that India’s test-prep market still holds room for structured, affordable models.

This is reinforced by its active learner funnel: 13.7 million subscribers, 4.46 million paid learners, and more than 300 hybrid centres as of June 2025. These touchpoints underline the scale PhysicsWallah has built across Tier 2 and Tier 3 cities, where hybrid formats tend to drive higher engagement.

Performance Signals Mixed Challenges Ahead

While top-line momentum has been strong, the financial trend presents a more layered picture. PhysicsWallah reported FY25 revenue of ₹3,039 crore, a 51 per cent rise that marked a recovery from earlier periods. However, profitability remains uneven. The company recorded a net profit of ₹243 crore in FY25 after a loss in FY24 but then reported a ₹127 crore loss in Q1 FY26.

This swing highlights the cost pressures of operating and expanding physical centres, along with the need to balance digital and offline investments. It also sets the stage for more scrutiny around quarterly performance now that the company is publicly listed.

Subscription Patterns Reveal Cautious Optimism

The IPO, sized at ₹3,480 to ₹3,481 crore, drew nearly twice the subscription by the final day. Demand was driven largely by Qualified Institutional Buyers (QIBs), who subscribed 2.86 times, while retail investors showed more moderate interest at 1.14 times. Employee participation was higher at 3.71 times and was supported by a ₹10 discount.

Ahead of the listing, anchor investors subscribed to ₹1,563 crore of the issue, with their lock-in periods extending into mid-December and mid-February. How the stock behaves once these shares become free to trade will be an indicator of long-term confidence.

PhysicsWallah is now the first major pure-play edtech company to list on Indian exchanges. The milestone creates a new reference point for evaluating the sustainability of hybrid learning models at scale.

As the initial excitement cools, the stock’s trajectory will likely depend on operational consistency, particularly around centre expansion, content development costs, and the balance between digital and offline revenue streams. With competition intensifying and regulatory clarity still evolving, market watchers will follow quarterly disclosures closely to assess whether the listing momentum can translate into stable value creation.

(Disclaimer: This report is based solely on publicly available information and market disclosures. It does not contain investment advice, forward-looking recommendations, or analyst opinions, and it does not represent the views of CyberMedia. Readers should seek guidance from certified financial advisors before making investment decisions.)