November 11, 2025
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PhysicsWallah IPO- Review- Avoid
by Paresh Gordhandas, CA & Research Analyst
PhysicsWallah Ltd., one of India’s fastest-growing edtech companies, is launching its maiden IPO at an upper price band of Rs. 109 per share (Face Value Rs. 1). The company has built a strong hybrid education model combining online platforms and physical centers to cater to competitive exams such as JEE, NEET, and UPSC, and professional upskilling in Data Science, Finance, and Tech.
In FY2025, PhysicsWallah reported Rs. 3,039 crore revenue, a 51% YoY growth, backed by 4.13 million online learners and 0.33 million offline students across 198 centers. Despite robust topline expansion, it posted a loss of Rs. 243 crore in FY25 — a sharp improvement from Rs. 1,131 crore loss in FY24, reflecting strong cost optimization and turnaround in operations.
EBITDA turned positive at Rs. 193 crore, indicating early signs of profitability. Borrowings dropped drastically to Rs. 0.33 crore from Rs. 1,687 crore a year ago, showcasing a clean balance sheet and healthy net worth of Rs. 1,945 crore.
The company enjoys one of the highest brand equities in Indian edtech, with 13.7 million YouTube subscribers and a diversified content portfolio of 3,582 books. However, sustainability of margins and offline scalability remain key watchpoints.
Chanakya View: With strong revenue visibility, brand loyalty, and a sharp financial turnaround, the IPO offers long-term growth potential, though near-term valuations hinge on sustained profitability. Yet.. The GMP has been sliding steadily from Rs. 9 to just Rs. 3 in the last few sessions, signalling clear weakness and raising fears of a negative listing similar to concerns seen in Lenskart. Traders say sentiment is further hurt by memories of past edtech collapses like Byju’s, prompting a cautious approach. Volumes have also thinned, confirming that confidence in this issue has reduced sharply.
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