PhysicsWallah Ltd. reported total income of ₹1,053.95 crore for Q1 FY26, representing a 24.42% year-on-year growth from ₹865.20 crore in the corresponding quarter last year. However, profit after tax declined 35.60% to ₹77.57 crore compared to ₹120.17 crore in Q1 FY25. Operating profit fell 26.81% to ₹123.22 crore from ₹169.73 crore in the previous year, with operating margin contracting to -11.69% from -4.18% in Q1 FY25. Diluted normalized EPS stood at -0.27 compared to -0.19 in the same quarter last year, reflecting the impact of higher operating expenses.
PhysicsWallah shares rallied 6.6% following a block deal involving 4.14 million shares, with the stock trading up 6% at ₹127 as of 12:24 PM. The stock opened at ₹123.37 and has seen heavy trading with over 28 lakh shares changing hands and a traded value of ₹356.52 crore by 12.10 pm. The company's market capitalisation stands at approximately ₹36,783 crore, with the stock trading among the top gainers on both BSE 500 and NSE 500 indices. Sell-side interest is dominant with roughly 66.61% of order quantity on the sell side against 33.39% on the buy side, suggesting active profit-booking even as the stock climbs. The counter's 52-week range is ₹77.72 to ₹161.99, meaning the stock remains well off its peak hit at listing in November 2025.
Motilal Oswal Financial Services initiated coverage on PhysicsWallah with a 'Buy' rating and a target price of ₹200, implying a potential upside of 58% from the current market price of around ₹126.42. As per MOFSL, PhysicsWallah is among India's largest education platforms, built on what the brokerage believes is one of the most capital-efficient business models in Indian EdTech. The brokerage noted that India's education market (₹15 trillion to ₹16 trillion) remains significantly underpenetrated online, with online penetration in flagship categories such as JEE and NEET only 20%, while penetration in newer segments, including foundation, state boards and government exams, remains below 1%. MOFSL values PhysicsWallah's offline business at a 15 times FY28 estimated enterprise value-to-earnings before interest, taxes, depreciation, and amortisation multiple to account for its high execution intensity, time required to reach maturity, and lower margin profile, while other business segments are valued at one time FY28 Estimated Enterprise value-to-sales ratio.
PhysicsWallah has compounded its revenue at around 74% CAGR over FY23-26, demonstrating exceptional growth momentum in the competitive EdTech sector. The company has built communities with 100 million-plus YouTube subscribers and maintains its position as one of the few new-age tech stocks to list on Dalal Street last year. Online revenue is estimated to clock around 28% CAGR over FY26-30E, supported by paid-user growth, deeper category expansion and AI-led monetisation. Offline revenue is expected to post around 20% CAGR over FY26-30E as recently opened centers mature and utilization increases. MOFSL expects pre-Ind AS EBITDA margins to improve from around 26% in FY26 to 30% by FY28E, driven by operating leverage and customer acquisition efficiencies.
Motilal Oswal values PhysicsWallah on a sum-of-the-parts basis, assigning a 50x FY28E EV/EBITDA multiple for the online business, reflecting its market leadership, structurally superior unit economics, and scalable technology platform, resulting in a per-share value of ₹172. The offline business is valued at 15x FY28E EV/EBITDA, contributing ₹4 per share, while other businesses are valued at 1x FY28E EV/sales, contributing ₹1 per share. However, the brokerage identified several key risks including higher competitive intensity, weaker offline execution and center utilisation, higher faculty attrition that could affect student outcomes and brand perception, and adverse regulatory changes affecting coaching institutes, advertising, or data privacy.
