Physicswallah shares have demonstrated exceptional momentum, rising over 40% in the last six months and jumping 41% year-to-date, significantly outperforming the 8% decline in the Sensex. According to latest market data, the stock is up 13% in October after a 6% rise in September, with shares hitting a 52-week high of ₹162.05 on 18 November and a 52-week low of ₹77.75 on 4 March. On Thursday, 8 October, the stock climbed over 1% in intraday trade, looking set to extend gains for the fourth consecutive session. The strong performance reflects growing investor confidence in the company's diversified growth strategy and execution capabilities.
Motilal Oswal has reiterated its Buy call on Physicswallah Ltd. with a target price of ₹200, implying around 43% upside from the brokerage's cited market price of ₹140. According to reports from The Financial Express, the brokerage believes the edtech company has multiple independent growth drivers that can support sustained revenue and Ebitda expansion over the next few years. The latest research report dated October 07, 2026, was based on discussions with Physicswallah's Co-founder Mr. Prateek Maheshwari during a three-day NDR in Singapore, covering five key themes including online growth drivers, K-12 opportunity, path to offline profitability, AI and TUTO launch, and capital allocation. Motilal Oswal values the company on a SoTP basis, assigning a multiple of 50 times FY28E EV/EBITDA for the online business and 15 times FY28E EV/EBITDA for the offline business, reflecting their different execution profiles and margin characteristics.
Motilal Oswal believes Physicswallah's multiple independent growth legs provide comfort on ~30% online compound annual growth rate for the next three-four years, with a clear path toward sustained Ebitda improvement over the same period. As reported by The Financial Express, the brokerage believes Physicswallah combines a near-monopoly position in online test prep, negative working capital, and multiple independent growth legs in K-12, state boards, new categories, and the South. The latest discussions highlighted that online growth is no longer tied to JEE/NEET, as newer categories, including K-12 and state boards, scale at high margins. The company has reiterated its FY27 guidance of 30% YoY total revenue growth and 100% YoY pre-Ind AS EBITDA growth. With offline nearing break-even in FY27, Motilal Oswal sees Ebitda compounding from nearly ₹600 crore in FY27E to nearly ₹2,000 crore in four years.
The online K-12 penetration remains at only around 0.5% of the 165 million student total addressable market, presenting significant growth potential. According to The Financial Express, Physicswallah's management highlighted that K-12 extends the student lifetime on the platform to 15-18 years from around 2 years in test preparation, with the segment expected to eventually outgrow test preparation. The company's premium after-school offering Curious Junior at ₹24,000 per year has reached around 50,000 students and ₹125 crore in collections in 18 months, with the business expected to near break-even this year after losses in FY26. Additionally, state boards are scaling rapidly with 4 lakh students across six states within 18 months of launch, with an addressable base of 6 crore students compared to 20 lakh CBSE exam takers annually. State board margins are currently 27% today, with management expecting them to exceed JEE/NEET at maturity.
With offline nearing break-even in FY27, Motilal Oswal sees Ebitda compounding from ~₹6,000 crore in FY27E to ~₹20,000 crore in four years. According to the latest report, the brokerage expects pre-IND AS EBITDA margins to remain in the 30-35% range over the next 4-5 years, with the potential to reach upwards of 40% over the medium term. The offline business has shown improvement with pre-IND AS EBITDA margin expanding to -10% in FY26 from -19% in FY25, expected to reach -2% to -3% in FY27. As reported by The Financial Express, the brokerage values Physicswallah on an SoTP basis, assigning a multiple of 50 times FY28E EV/EBITDA for the online business and 15 times FY28E EV/EBITDA for the offline business, reflecting their different execution profiles and margin characteristics. Adjusting for cash, Motilal Oswal arrives at a target price of ₹200, implying a 43% upside.
Physicswallah's management believes AI tools are largely used for homework answers rather than structured learnings, with 90% of student doubts now resolved by AI, reducing turnaround time from 24-48 hours to minutes. According to The Financial Express, the company runs its own fine-tuned small language models (Aryabhatta) and routes only complex queries to frontier models, keeping inference costs low. The brokerage notes that AI is already deeply embedded in the product, demonstrating the company's commitment to technological innovation and expanding its service offerings beyond traditional test preparation.
