Highlights
| Issue Size – 31,92,66,054 shares | Issue Open/Close – 11 Nov / 13 Nov, 2025 |
| Price Band (Rs.) 103 – 109 | Issue Size (Rs.) – 34,800 mn |
| Face Value (Rs) – 1 | Lot Size (shares) 137 |
PhysicsWallah Limited (PWL) incorporated in 2020, offer courses across 13 Education Categories including: (i) Flagship test preparation courses for JEE, NEET and Foundation; (ii) Other-test preparation courses for other competitive entrance examinations for undergraduate and post-graduate studies, public administration jobs and professional qualifications; and (iii) Upskilling courses for students and professionals.
PWL offer courses through multiple channels – (i) online, which includes PWL’s social media channels, website and apps; (ii) through tech enabled offline centers; and (iii) hybrid centers, which are a combination of both online and offline.
PWL started operations by offering courses online and have expanded to multiple channels of delivery – online, offline and hybrid. This gives students the flexibility to choose their preferred mode of study. For FY25, they had 4.13 mn Unique Transacting Users (Online Channel), and and 0.33 mn student enrolments in their offline centers, respectively.
They had 4,382 books published by them and over 8.66 mn question banks in their content library. Additionally, they use technologies such as AI, big data and machine learning to develop and offer students various tools to support their studies during live sessions and outside the classroom.
Out of the total proceeds of approximately Rs. 34,800 mn, Rs. 4,606 mn would be utlizied for CAPEX fit-outs of new offline and hybrid centers. Rs. 5,483 mn would go towards lease payments of existing identified offline and hybrid centers operated by the company. Rs. 1,017 mn would go for investments in subsidiaries, Rs. 9,101 mn would go towards server, cloud related infrastructure costs and marketing initiatives. ~Rs. 10,793 mn would go towards funding inorganic growth through unidentified acquisitions and general corporate purposes and ~Rs. 3,800 mn would go towards promoter selling shareholders of the company.
Key Highlights
- India’s education sector ranks among the largest worldwide, driven by its scale and continued investment. India’s test preparation market is projected to grow at a CAGR of approximately 13 pct to reach Rs. 1.9 trillion to Rs. 2.1 trillion by FY30.
- PWL aim to leverage their proprietary technology stack to provide content at scale, integrate new offerings successfully, and offer tech-backed tools to students and teachers for planning coursework, solving questions, grading tests, leading to efficient pedagogy.
- The company offers the option to students to pay the course fee in installments for some of their higher priced courses. They also provide options for students to avail loans from third-party financial institutions to sign up for courses. They have tied up with a few financial companies in India who provide services related to student financing.
- PWL operate some of their offline and majority of hybrid centers through franchisees. They enter into franchisee agreements with franchisees that typically have a term of five years. These franchisees are required to operate the center exclusively under their brand name and cannot provide services for other education service providers during the term of the agreement at the unit franchisee.
- PWL’s key strategies include (i) Increase student engagement leading to enhanced brand recall (ii) Expand and enhance offerings across multiple education categories (iii) Scale operations and introducing new value-added services to improve margins (iv) Strategically pursuing inorganic opportunities to strengthen capabilities and broaden market reach.
- Sales of the company has grown by 96.9 pct CAGR over FY23-25 and adjusted EBITDA grew by 90.3 pct CAGR. During FY25 the sales of the company grew by 48.7 pct YoY to Rs. 28,866 mn. While adjusted EBITDA of the company increased by 544.8 pct YoY to Rs. 4,320 mn. During FY25, the company posted loss of Rs. 2,433 mn against loss of Rs. 11,311 mn in FY24.
Key Risk
- PWL success depends on their ability to attract and retain faculty members. Any failure to do so could adversely impact their business.
- Certain of their Subsidiaries, Xylem, Knowledge Planet and Utkarsh Classes have incurred losses in FY25. If they continue to incur losses, it might affect PWL’s financials.
- Failure to protect students’ safety and security may negatively impact PWL’s reputation and business.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | Q1FY25 | Q1FY26 |
| Sales (Rs. mn) | 7,443 | 19,407 | 28,866 | 6,352 | 8,471 |
| EBITDA (Rs. mn) | 139 | -8293 | 1932 | 92 | -212 |
| EBITDA Margin (%) | 1.9% | -42.7% | 6.7% | 1.5% | -2.5% |
| Adjusted EBITDA (Rs. mn) | 1,193 | 670 | 4,320 | 302 | 265 |
| Adjusted EBITDA Margin (%) | 16.0% | 3.5% | 15.0% | 4.8% | 3.1% |
| Profit/loss (Rs. mn) | -841 | -11311 | -2433 | -718 | -1270 |
| Profit/loss Margin (%) | -11.3% | -58.3% | -8.4% | -11.3% | -15.0% |
Valuation
Physics Wallah Limited (PWL) is student’s lifelong learning partner that is democratizing education at scale in India, with a presence spanning online, offline, and hybrid modes, reaching 98 pct of India`s pin codes. PW has more than 10 mn paid students on the PW App. PW also provides quality education to more than 36 mn students through its 80 YouTube channels in 8 vernacular languages. At the upper end of the price of Rs. 109, the issue quotes EV/TTM Sales of 10.3x. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
