PhysicsWallah ₹3,480 Cr IPO Opens: GMP, Review & Key Details Inside

PhysicsWallah, aka known as PW, started as an online learning platform and has now grown into one of India’s biggest education companies. It helps students prepare for key competitive exams like JEE (engineering), NEET (medical), and even government jobs, at a very affordable cost.

Now, the company is coming out with its Initial Public Offering (IPO) from November 11 to 13, 2025. The price band is ₹103 to ₹109 per share, and investors need at least ₹14,933 to apply. The tentative listing date is November 18, 2025.

The GMP, which is an unofficial indicator of how much investors are willing to pay before listing, is about ₹3, suggesting a small premium of 2.75%. But remember, GMP changes quickly and doesn’t guarantee actual listing prices.

In this blog, we’ll walk through what PhysicsWallah does, how it earns money, why it’s raising funds through the IPO, its financials, strengths, risks, and how it stacks up in India’s education market.

IPO Overview

• IPO Date: Nov 11-13, 2025
• Total Issue Size: ₹3,480 crore
• Price Band: ₹103 to ₹109 per share
• Minimum Investment: ₹14,933
• Lot Size: 137 Shares
• Tentative Allotment Date: Nov 14, 2025
• Listing Date: Nov 18, 2025 (Tentative)
• GMP: The GMP for the PhysicsWallah IPO is ₹3, reflecting a 2.75% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How PhysicsWallah Makes Money

PhysicsWallah is like a modern classroom that never sleeps, one that reaches every corner of India through a mix of online, offline, and hybrid formats.

Its business revolves around three main channels:

• Online Classes: Students attend live lectures through apps and websites.
• Offline Centers (Vidyapeeth): These are physical coaching hubs with traditional teacher-student interactions.
• Hybrid Centers (Pathshala): Students watch online lectures in a center but also get in-person guidance for doubts and revisions.

PW also offers residential programs where students can stay and study.

Besides exam prep, the platform has started offering skill-based courses, for example, data science or coding, targeted at college students and professionals.

PW earns money mainly through:

• Course Fees: The main source, paid by students attending its programs.
• Product Sales: Selling study materials, books, and accessories.
• YouTube Ads: Income from third-party advertisements on its massive free-learning channels.

The secret behind its low-cost structure is its own technology system, a “tech stack” that allows thousands of students to learn at once. Its AI-based tool, “AI Guru,” instantly answers questions for millions of learners, helping control teacher workload and cost.

PW also uses smart acquisitions to grow faster; it acquired Xylem (for South India) and Utkarsh Classes (for government exam prep) to reach new audiences.

Objectives of the IPO

PhysicsWallah plans to raise ₹3,480 crore - ₹3,100 crore as new shares and ₹380 crore through an Offer for Sale (OFS).

Here’s how the company will use the fresh funds:

• Expand Offline and Hybrid Centers (₹460.55 crore): This will fund new centers across India. Roughly half will go towards ‘Vidyapeeth’ centers and about ₹50 crore toward ‘Pathshala’ hybrid centers — meeting rising student demand beyond online learning.
• Lease Payments for Current Centers (₹548.31 crore): PW will spend on rent and leases for its 112 offline and 78 hybrid centers — essential for continuity and long-term presence in high-demand cities.
• Investment in Subsidiaries: ₹47.17 crore for South Indian expansion through Xylem Learning. ₹28 crore for strengthening Utkarsh Classes’ offline presence.
• Technology and Infrastructure (₹200.11 crore): Funds will go into strengthening server and cloud infrastructure — important for handling millions more students online.
• Marketing and Brand Building (₹710 crore): This large portion will support student acquisition, brand awareness, and national expansion.
• Increase Stake in Utkarsh Classes (₹26.5 crore): PW wants to boost ownership in this subsidiary for better control and integration.
• New Acquisitions and General Purposes: Remaining sums will go toward new buyouts and general operating needs.

Strengths:

• Strong Revenue Growth: PW’s revenue surged from ₹744 crore in FY23 to ₹2,887 crore in FY25, a growth rate of around 97% per year. This shows student trust and the effectiveness of its hybrid approach.
• Low Debt, Strong Balance Sheet: The company reduced its borrowings from ₹1,687 crore in FY24 to just ₹0.33 crore in FY25. That means it now runs almost debt-free, reducing pressure on cash flows.
• Huge Digital Reach: With 11.93 crore total subscribers across channels, PW has India’s largest student community. This large base keeps marketing costs low as students find the brand through word of mouth.
• Affordable Pricing Model: PW’s one-year JEE course costs around ₹4,500, compared to ₹75,000-₹80,000 charged by leading coaching brands. This affordability gives it a strong edge in middle-class India.
• Improving Profit Margins: PW turned operating losses into positive earnings: EBITDA improved from a loss of ₹829 crore in FY24 to a profit of ₹193 crore in FY25. That’s a big operational jump.

Risks:

• Still Loss-Making: Despite growth, the company reported a ₹243 crore loss in FY25. Sustaining profit depends on managing costs and stabilizing center operations.
• City Dependence: Cities like Delhi NCR (11.24%) and Patna (9.45%) contribute heavily to offline revenue. If demand drops in these hubs, it could hurt income.
• Falling Enrollment in Key Centers: Kota, once a stronghold, saw student numbers drop from 27,000 in FY23 to just 11,500 in FY25, reflecting competition challenges.
• Subsidiary Losses: Acquired brands like Xylem and Utkarsh still post losses, meaning PW must keep supporting them financially.
• High Employee Cost: Salaries made up nearly half (48.5%) of total revenue in FY25. Controlling staff costs is vital for turning a profit.

For complete information, visit PhysicsWallah’s official IPO page at INDmoney.

Peer Comparison

There’s no directly comparable listed company in India with the same hybrid model, but here’s the context:

• Revenue Scale: PW ranks third in India’s JEE-NEET coaching market (₹1,941 crore in FY24), behind Allen (₹3,245 crore) and Aakash (₹2,386 crore).
• Pricing Advantage: Its most popular course is around ₹4,500, while peers charge more than ₹75,000 on average.
• Network Size: PW operates 303 centers across 152 cities; its closest organized peer averages far fewer.
• EBITDA Margin Comparison: PW’s margin improved to 6.7% in FY25, while mature players typically enjoy 20–25%. That shows PW is still in a heavy investment phase.

PhysicsWallah’s Financial Performance

PW’s revenue almost quadrupled in two years, from ₹772 crore in FY23 to over ₹3,000 crore in FY25. Its user base also shot up from 17.6 lakh to 44.6 lakh paid students.

Even though the company is still not profitable, its operational performance is clearly improving. Losses of over ₹1,100 crore in FY24 came mainly from a one-time accounting adjustment, not core losses. Actual operating performance recovered in FY25 with a big swing to positive EBITDA.

Total borrowings fell drastically to near zero, meaning the company now funds growth mostly through equity, not loans.

PhysicsWallah IPO Valuation

Post-IPO, PhysicsWallah’s market value will be ₹31,527 crore.

Its Price-to-Sales (P/S) ratio is around 10.9. That means investors are paying ₹11 for every ₹1 in FY25 revenue, a high number that reflects belief in future growth more than current profits.

The EV/Revenue ratio (which also includes debt and lease obligations) is about 11.3. The EV/EBITDA multiple is around 75×, meaning investors are valuing PW at 75 times its core yearly operating profit. This is steep compared with traditional education companies, showing that valuations are being driven by perceived long-term potential rather than past profits.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who Leads PhysicsWallah?

PhysicsWallah was founded by Alakh Pandey and Prateek Boob, who still own over 80% of the company before the IPO.

• Alakh Pandey, CEO, is widely known for his relatable teaching style and online presence. With no formal college degree, he built a multi-crore company from scratch, focusing on accessible learning. He earned around ₹3.2 crore in FY25.
• Prateek Boob, co-founder, is an IIT-BHU graduate and engineer. He leads the technology and innovation side of the business and chairs the India Edtech Consortium.
• Amit Sachdeva, CFO, and Ajinkya Jain, General Counsel, complete a capable leadership team with backgrounds in finance and law.

Who’s Making Money from the IPO?

The offer for sale (₹380 crore) will allow both founders, Alakh Pandey and Prateek Boob, to sell shares worth up to ₹190 crore each. Because they acquired these shares at negligible cost (largely through bonus issues), this sale represents value creation from the company they built. After this sale, they’ll still retain a significant majority stake, about 80.6%.

Industry Outlook

India’s education market is massive, around ₹15-16 trillion in FY25 and expected to grow over 10% annually to ₹24-26 trillion by FY30.

The test preparation business alone, where PW operates, could reach ₹1.9-2.1 trillion by FY30. Growth will come from three key trends:

• A huge young population (44% Indians under 25 years old).
• More affordable internet access is pushing digital learning forward.
• Rising middle-class aspiration for better education as a path to success.

However, the industry faces challenges - intense competition, regulatory changes in exam patterns, and the growing pressure to address student well-being issues such as stress and burnout.

Analyst View

PhysicsWallah’s IPO tells a powerful growth story, an education platform built for scale, affordability, and long-term relevance. Its huge student base, low-cost model, and improving financial efficiency are strong positives.

However, investors must remember this is still a business in the consolidation phase. It runs at a loss, depends on a few key cities, and faces operational risks from rapid expansion.

From a valuation angle, the IPO is priced for strong future growth rather than current profitability. Retail investors should watch whether the company can turn consistent profits while keeping costs under control.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: PhysicsWallah's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.