PhysicsWallah IPO
PhysicsWallah IPO Price Range is ₹103 - ₹109, with a minimum investment of ₹14,933 for 137 shares per lot.
Subscription Rate
1.81x
as on 13 Nov 2025, 06:52PM IST
Minimum Investment
₹14,933
/ 137 shares
IPO Status
Price Band
₹103 - ₹109
Bidding Dates
Nov 11, 2025 - Nov 13, 2025
Issue Size
₹3,480.00 Cr
Lot Size
137 shares
Min Investment
₹14,933
Listing Exchange
BSE
IPO Doc
PhysicsWallah IPO Application Timeline
IPO Subscription Status
as on 13 Nov 2025, 06:52PM IST
IPO subscribed over
🚀 1.81x
This IPO has been subscribed by 1.06x in the retail category and 2.7x in the QIB category.
Subscription Rate
| Total Subscription | 1.81x |
| Retail Individual Investors | 1.06x |
| Qualified Institutional Buyers | 2.7x |
| Non Institutional Investors | 0.48x |
PhysicsWallah IPO: What’s in It for Investors?
PhysicsWallah is raising up to ₹3,480 crore via its IPO. This short video explains how PhysicsWallah makes money, its rapid growth in the Indian edtech space, and why the IPO is generating strong investor interest.
Objectives of IPO
- The company's initial public offering (IPO) aims to raise funds totaling up to ₹3,480 crore. This offer is divided into two parts: a fresh issue of equity shares aggregating up to ₹3,100 crore and an offer for sale (OFS) aggregating up to ₹380 crore. The funds from the offer for sale will go entirely to the selling shareholders, namely its promoters, Alakh Pandey and Prateek Boob, who are each selling shares worth up to ₹190 crore. The funds received from the fresh issue will be used for the following objectives.
- It plans to spend ₹460.55 crore for fitting out new offline and hybrid centers operated directly by the company. This includes specific amounts like ₹234.37 crore for ‘Vidyapeeth’ offline centers and ₹49.89 crore for ‘Pathshala’ hybrid centers, as it aims to meet student demand.
- A sum of ₹548.31 crore is allocated for lease payments for its existing identified offline and hybrid centers, which include 112 'Vidyapeeth' and 78 'Pathshala' centers as of June 30, 2025.
- The company will invest ₹47.17 crore into its subsidiary, Xylem Learning Private Limited. This investment covers ₹31.65 crore for capital expenditure to fit out new centers (New Xylem Centers), primarily to expand geographical presence in South India, and ₹15.52 crore for Xylem's existing lease payments.
- It plans to invest ₹28 crore in its subsidiary, Utkarsh Classes & Edutech Private Limited, solely for lease payments related to Utkarsh Classes’ existing offline centers.
- The company has set aside ₹200.11 crore to fund server and cloud infrastructure, intending to expand its cloud capacity to handle a higher volume of students and content.
- A large portion of the proceeds, ₹710 crore, is dedicated to marketing initiatives. These funds are intended to support branding, acquisition, and retention campaigns as part of its offline and online expansion strategy.
- The company proposes to use ₹26.5 crore to acquire an additional 12.25% shareholding in its subsidiary, Utkarsh Classes & Edutech Private Limited. The company currently holds 63.25% of Utkarsh Classes on a fully diluted basis. An amount, which is yet to be finalized, is reserved for funding new, unidentified acquisitions and for general corporate purposes.
Financial Performance of PhysicsWallah
The company has emerged as one of the fastest-growing edtech players in India, which is evident by its total revenue rising at a high Compound Annual Growth Rate (CAGR) of 98.3% between FY23 (₹772.54 crore) and FY25 (₹3,039.09 crore). This rise in revenue was primarily driven by two key factors: an increase in the total number of paid users (from 17.6 lakh in FY23 to 44.6 lakh in FY25) and significant expansion across new education categories and its offline business. This expansion drove total assets up by a CAGR of 41.3% through FY25. The strong growth momentum continued into the latest quarter, as total revenue in Q1 FY26 (₹905.41 crore) grew 37.13% year-over-year from Q1 FY25 (₹660.25 crore).
Despite this revenue growth, the company consistently reports net losses. The loss spiked dramatically in FY24 to ₹1,131.13 crore. This anomaly was not primarily due to operational issues but an accounting event, stemming from a massive one-time loss of ₹756.47 crore recognized from the fair valuation of compulsorily convertible preference shares (CCPS). The loss improved sharply in FY25 to ₹243.26 crore because the CCPS fair valuation expense reduced significantly after the instruments were reclassified from liabilities to equity. However, the loss in Q1 FY26 (₹127.01 crore) widened by 76.86% year-over-year from Q1 FY25 (₹71.81 crore), primarily driven by high investment in expansion, including increased employee benefits expense (due to increased headcount to 18,028 members in Q1 FY26) and substantially higher advertisement and publicity expenses.
The financial structure saw a dramatic improvement in terms of debt, with total borrowings plunging by nearly 99% from ₹1,687.4 crore in FY24 to a negligible ₹0.33 crore in FY25. This massive deleveraging occurred because the CCPS were reclassified as instruments entirely equity in nature. The company maintained this minimal debt, with borrowings remaining low at ₹1.55 crore in Q1 FY26. Regarding monetization efficiency, the adjusted EBITDA margin initially dropped from 16.03% (FY23) to 3.45% (FY24), reflecting heavy investment, before recovering to 14.96% in FY25.
Strengths and Risks
Strengths
It achieved a robust Compound Annual Growth Rate (CAGR) of 96.93% in revenue from operations between FY23 (₹744.32 crore) and FY25 (₹2,886.64 crore). This growth demonstrates successful execution and high scaling velocity.
Its effective hybrid strategy drove the growth of its total offline centers at an aggressive CAGR of 165.92% between FY23 (28 centers) and FY25 (198 centers), establishing a widespread physical footprint.
It attracted 44.6 lakh total paid users in FY25, confirming strong student acceptance and conversion capabilities, growing at a CAGR of 59.19% between FY23 and FY25.
The business achieved a significant operational improvement, moving its EBITDA from a highly negative ₹829.35 crore in FY24 to a positive ₹193.20 crore in FY25. At the same time, its adjusted EBITDA moved from ₹66.98 crore to ₹4,31.96 crore during the same period.
It commands a massive online presence, operating the nation's largest student community with a cumulative 11.93 crore followers or subscribers, which acts as an "organic funnel" to convert users into paid students. This reliance on brand affinity reduces the necessity for high marketing expenditure relative to peer strategies.
Its offline centers boast a strong average revenue per user (ARPU) of ₹40,404.56 in FY25. This high ARPU confirms effective monetization of its high-touch offline and hybrid centers, which is critical for revenue stability and growth.
Risks
It has incurred significant losses across recent periods, including ₹243.26 crore in FY25 and ₹127.01 crore for the three months ended June 30, 2025, raising concerns about achieving sustained profitability.
It is highly dependent on a few geographic hubs, with top cities like Delhi NCR (11.24%) and Patna (9.45%) contributing significantly to offline revenue in FY25. Localized disruptions could severely impact cash flows.
Enrollment figures are unstable in specific cities; for example, student enrollment in Kota, Rajasthan, dropped significantly from 27,158 in FY23 to 11,540 in FY25. Such declines underscore local operational risks and competitive challenges.
Key acquired subsidiaries continue to struggle financially, demanding ongoing parental support; for instance, Xylem incurred a total comprehensive loss of ₹52.95 crore, Penpencil Edu Services (₹23.87 crore), and Utkarsh Classes (₹19.6 crore) in FY25.
Its strategy of growth via acquisitions carries inherent risks, evidenced by the impairment of investments like Penpencil Edu Services and PrepOnline Futurist (₹39.09 crore and ₹2.39 crore impairment in FY25, respectively) after failing to realize expected synergies or revenue targets.
The aggressive expansion of its offline network (totaling 303 centers as of June 30, 2025) subjects the company to heightened risks of delays, cost overruns, and execution failure, potentially harming financial results.
How to Apply for PhysicsWallah IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on PhysicsWallah IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
PhysicsWallah Shareholding Pattern
| Promoters | 80.62% | |
| Name | Role | Stakeholding |
| Alakh Pandey | Promoter | 40.31% |
| Prateek Boob | Promoter | 40.31% |
| Public | 19.38% | |
| Name | Role | Stakeholding |
| WestBridge AIF I | Public | 6.4% |
| Hornbill Capital Partner Limited | Public | 4.41% |
| GSV Ventures Fund III, L.P. | Public | 2.85% |
| Lightspeed Opportunity Fund II, L.P. | Public | 1.79% |
| Setu AIF Trust | Public | 1.39% |
| Others | 2.54% |
About PhysicsWallah
The company targets a broad student base preparing for tests across 13 education categories, including undergraduate entrance exams, Civil Services, and Defence. Its key markets primarily include India, but it also operates in the Middle East. The company's large scale is demonstrated by its 24.3 lakh paid users recorded in the three months ended June 30, 2025. To operate this multi-channel delivery, it relies on 18,028 total employees and 6,267 total faculty members. Its physical presence includes 303 total offline centers, covering 152 cities in India and the Middle East, as of June 30, 2025.
Its core strategy involves offering a large amount of content for free, fostering a massive online community, and brand loyalty. This community then serves as an organic funnel, converting engaged users into paid customers for its various online and offline course offerings. Operations rely on a robust, scalable technology platform (tech stack) and specialized content development teams. The company plans to continuously expand into new competitive test categories and languages. It will also strategically grow its nationwide physical center network while investing in AI-backed learning tools.
For more details, visit here: www.pw.live
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Who are the promoters of PhysicsWallah?
The promoters of the company are Alakh Pandey and Prateek Boob. They collectively hold an aggregate of 80.62% of the company’s pre-IPO share capital on a fully diluted basis. Alakh Pandey and Prateek Boob are also participating as the promoter selling shareholders in the offer for sale.
Who are the competitors of PhysicsWallah?
As per the RHP, there are no listed companies in India with a comparable size, scale, and business model to the company. However, in the test preparation market, its key competitors by FY24 revenue include Allen Career Institute (₹3,244.72 crore) and Aakash Educational Services (₹2,385.82 crore).
How does PhysicsWallah make money?
The company earns revenue primarily by offering test preparation courses for competitive exams (like JEE and NEET) and upskilling programs. Revenue sources include the sale of services (online and offline coaching, hostels) and products (books). In the three months ended June 30, 2025, revenue from operations reached ₹847.09 crore.