PhysicsWallah IPO: Shares Debut with Notable Gains – Buy, Sell, or Hold?
PhysicsWallah made a notable debut in the stock market on Tuesday, with its shares surging significantly above the initial public offering (IPO) price. The stock opened at Rs 145 on the National Stock Exchange (NSE), marking a 33% increase from its IPO price of Rs 109. On the Bombay Stock Exchange (BSE), shares began trading at Rs 143.10, a 31% rise, and peaked at Rs 162.05 during the trading day. This strong performance has sparked discussions among investors regarding their next moves, whether to buy, sell, or hold.
Strong Market Reception
The market response to PhysicsWallah’s IPO reflects a high level of investor confidence in the edtech company’s brand and its innovative hybrid teaching model. Analysts have pointed out that the company’s strong brand recognition, affordable test preparation offerings, and rapidly expanding hybrid model have all contributed to its successful market entry. Shivani Nyati from Swastika Investmart highlighted that PhysicsWallah benefits from a loyal student base and a diverse portfolio of exams, along with a scalable digital content system. However, she also cautioned about potential risks posed by larger competitors, regulatory uncertainties, and ongoing profitability challenges. Nyati suggested that investors might consider taking some profits while retaining a portion of their holdings for potential medium-term gains, recommending a stop-loss at Rs 130.
IPO Details and Subscription Levels
The IPO, valued at approximately Rs 3,480–3,481 crore, is one of the largest in India’s edtech sector and saw nearly double the subscription by its closing day. The offering included a fresh issue of around Rs 3,100 crore and an offer for sale worth Rs 380 crore. Institutional investors drove the demand, with qualified institutional buyers (QIBs) subscribing 2.86 times, while retail interest was at 1.14 times. Non-institutional bidding was comparatively subdued. Employees showed strong support, subscribing 3.71 times, aided by a Rs 10 discount on shares. Prior to the IPO, PhysicsWallah secured Rs 1,563 crore from anchor investors, whose shares will remain locked in until mid-December and mid-February.
Company Growth and Financial Performance
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has evolved from a YouTube channel into a significant player in the edtech industry, boasting 13.7 million subscribers and 4.46 million paid learners, along with over 300 centers as of June 2025. In the fiscal year 2025, the company reported a 51% increase in revenue, reaching Rs 3,039 crore, and a net profit of Rs 243 crore, recovering from a loss in the previous fiscal year. Despite this positive trend, PhysicsWallah remains loss-making in cumulative terms, having reported a Rs 127 crore loss in the first quarter of fiscal year 2026. The funds raised from the IPO are intended to support the company’s expansion, technology upgrades, infrastructure improvements, and potential acquisitions.
Market Analysts’ Perspectives
Before the listing, brokerage firms expressed varied opinions on PhysicsWallah’s IPO. Incred Equities recommended a “Subscribe” rating, citing strong growth prospects in both online and offline segments, despite concerns over stretched valuations. Conversely, SBI Securities adopted a neutral stance, while Swastika Investmart advised against participating in the IPO. Analysts have warned that while the initial market debut was robust, modest subscription levels, competitive pressures, and inconsistent profitability could lead to volatility in the stock’s performance as the initial excitement subsides. PhysicsWallah’s listing marks a significant milestone as it becomes the first major pure-play edtech company to be listed on Indian exchanges.
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