PhysicsWallah Share Price Jumps Over 38 Percent After Market Debut

PhysicsWallah made a strong debut in the market by listing at a 33 percent premium over its IPO price. Soon after listing, the stock continued to move upward and is now trading about 38 percent higher. For an edtech company that grew from free YouTube classes, this performance has put the spotlight back on the education sector. While the exact reasons for the premium listing are not fully known, the early response shows that many investors see strength in the company’s long-term story.

A Quick Look at How PW Reached This Stage

PhysicsWallah began with simple, low-cost video lessons and built trust among students preparing for tough exams. Over the years, it expanded to paid courses, regional language classes, books, and offline coaching centres. This mix of digital scale and classroom presence helped the company reach students in large cities and deep into small towns.

One of PW’s biggest advantages is its digital reach. With almost 12 crore total subscribers across channels, it has one of the largest student communities in India. This reduces marketing costs because most students discover the brand organically or through recommendations.

What the Numbers Reveal

Even before the IPO, PhysicsWallah was showing fast growth.

• Revenue grew from ₹744 crore in FY23 to ₹2,887 crore in FY25. This is very high yearly growth, and it signals strong demand across courses.
• The company also improved its balance sheet sharply. Borrowings fell from ₹1,687 crore in FY24 to just ₹0.33 crore in FY25, making it almost debt-free.
• It also turned operating losses into operating profits. EBITDA moved from a loss of ₹829 crore in FY24 to a EBIDTA profit of ₹193 crore in FY25.

These improvements may have supported early investor confidence during listing. Another big strength is PW’s pricing model. A one-year JEE course costs around ₹4,500, compared to around ₹75,000 or more charged by premium coaching brands. This large price difference gives PW a strong edge among middle-class families, who form the bulk of exam-preparation demand.

The Risks and Challenges Behind the Growth

Even with the strong start, the company has several risks that investors must keep an eye on.

• Despite improving operations, PhysicsWallah still reported a ₹243 crore net loss in FY25. Turning this into a profit will depend on how well it controls costs.
• The company depends heavily on a few cities for a large share of offline revenue. Delhi NCR alone contributes more than 11 percent and Patna around 9 percent. Any slowdown in these regions may affect income.
• Student enrollment is falling in some important centres. Kota, once a major hub for PW, saw student numbers drop from 27,000 in FY23 to 11,500 in FY25. This shows rising competition in the offline coaching market.
• Some of its acquired brands, like Xylem and Utkarsh, still make losses. PW will have to support them until they stabilize.
• Employee costs are high. Salaries made up nearly half of the total revenue in FY25, which puts pressure on margins if revenue growth slows.

These risk factors remind investors that while the growth story is strong, managing the business at scale will be a real test.

What Investors Will Watch Going Forward

Now that the stock has listed well and is trading above issue price, the focus shifts to execution. Investors will closely track:

• How fast offline centres become profitable
• Whether student enrollment remains stable across key regions
• How much the company spends on expansion
• Progress in reducing losses in its subsidiaries
• Trends in staff costs and teaching expenses

The next few quarters will offer a clearer picture of how well the company converts its scale into sustainable earnings.

What This Means for the Edtech Sector

PhysicsWallah is one of the first big edtech names to go public. A strong listing does not remove all challenges, but it does show that demand for structured and affordable education remains strong. If PW continues to perform, it could rebuild confidence in the broader sector and possibly open the door for more IPOs in the future.

Key takeaways for investors

• The stock listed at a 33 percent premium and is now trading 38 percent higher, showing strong early interest.
• PW has shown fast revenue growth, low debt and improving operating performance.
• Risks remain, including high employee costs, city dependence and falling enrollment in some centres.
• Investors should watch profit trends, offline expansion and subsidiary losses in the next few quarters.
• PW’s performance will shape how the market views the entire edtech sector in the coming years.

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