Shares of PhysicsWallah gained as much as 7% on Monday, May 11, following brokerage firm HSBC's initiation of coverage on the stock with a 'Buy' rating and a price target of ₹135 per share. According to reports from CNBC TV18, this price target implies a potential upside of 28% from current levels, driving significant investor interest in the education technology company.
As reported by CNBC TV18, PhysicsWallah has evolved from a YouTube channel launched in 2016 into one of India's leading education technology companies with presence across both online and offline learning segments. The brokerage highlighted that the company remains relatively insulated from AI-led disruption in the domestic market and demonstrates resilience during broader macroeconomic slowdowns. The company's growth is being driven by strong demand for quality education and the increasing importance of competitive entrance examinations in India.
According to HSBC's analysis reported by CNBC TV18, over FY26-28E, the company expects adjusted EBITDA to rise nearly sevenfold to ₹960 crore, driven by around 30% CAGR in revenue. The brokerage anticipates a sharp improvement in margins from nearly 3.6% in FY26E to around 15% by FY28E. India's favourable demographics, with an average age of 28, continue to provide structural growth tailwinds, while modest job creation has increased the importance of academic credentials, supporting higher household spending on exam preparation.
As reported by CNBC TV18, key risks to HSBC's outlook include regulatory changes, teacher attrition, and intensifying competition in the offline education segment. The brokerage noted that India's favourable demographics, with an average age of 28, continue to provide structural growth tailwinds, while modest job creation has increased the importance of academic credentials, supporting higher household spending on exam preparation.
