Brokerage firm The Hindu BusinessLine has initiated coverage on PhysicsWallah Ltd. with a 'Buy' rating and a target price of ₹150 per share, representing a significant upside from the current market price of ₹139.40. The brokerage cites strong online growth, expanding offline monetisation, and improving profitability as key drivers for their positive outlook. According to The Hindu BusinessLine, the stock has built one of India's largest education ecosystems through its community-led digital funnel, anchored by JEE and NEET and expanding across multiple education categories.
PhysicsWallah maintains a strong market position as a leading test preparation and coaching services provider for students in India. The company currently holds a 22% share of the 2.9 million JEE aspirants and a 25% share of the 4.1 million NEET aspirants in FY2026, as reported by The Hindu BusinessLine. The platform supports both a scaled online business and a rapidly maturing offline network, with the scale of the existing learner base providing meaningful headroom to increase revenue per user.
The brokerage expects PhysicsWallah's revenue to grow significantly from ₹3,900 crore in FY26 to ₹7,450 crore in FY29E, representing a 24.1% CAGR. EBITDA margins are projected to expand substantially from 9.8% to 21.3% during this period, with PAT reaching ₹840 crore. This represents a more aggressive growth trajectory compared to previous projections, with the focus shifting towards monetisation, profitability and returns as scale has largely been proven.
Of the 11 analysts covering PhysicsWallah, eight have a 'Buy' rating, one has a 'Hold' rating and two have a 'Sell' rating, as reported by CNBC TV18. This consensus shows mixed sentiment among the analyst community despite the company's strong market position in India's test preparation sector. The latest brokerage initiation with a 'Buy' rating adds to the positive sentiment, indicating growing confidence in the company's growth prospects and monetisation strategy.
