PhysicsWallah Shares Decline for Third Consecutive Day, Rs 8,600 Crore Lost Since Market Debut
PhysicsWallah, the prominent edtech firm, has experienced a rapid decline in its stock value following an initial surge after its public listing. After debuting with a notable premium, the shares have fallen for three consecutive sessions, resulting in a significant loss of investor wealth. The stock price dropped over 9% to Rs 130.65 on the Bombay Stock Exchange (BSE), leading to a market capitalization decrease of nearly Rs 8,609 crore since its listing.
Initial Surge and Subsequent Decline
PhysicsWallah made its market debut on November 18, opening at a 33% premium with shares priced at Rs 145 on the National Stock Exchange (NSE) and Rs 143.10 on the BSE. The company’s first trading day closed at Rs 156.49, marking a remarkable 44% increase from its initial public offering (IPO) price of Rs 109. However, this initial excitement quickly waned. On the second trading day, the stock experienced a significant drop, falling nearly 11% intraday to Rs 138.54 before closing 8% lower at Rs 143.28. The selling pressure continued to mount, resulting in the stock’s decline over the following days.
Despite the recent downturn, shares remain over 20% above the IPO price. At its peak on debut day, PhysicsWallah was valued at approximately Rs 46,300 crore. However, this valuation has diminished due to profit-taking, concerns about valuation, and caution surrounding new-age listings. Market analysts suggest that while the stock has faced challenges, it still holds potential due to the company’s strong fundamentals.
Investor Sentiment and Market Analysis
Investor enthusiasm during the listing was largely attributed to PhysicsWallah’s strong brand recognition, affordable test-preparation offerings, and its rapidly expanding hybrid model, which includes both online platforms and physical PW Pathshala centers. Shivani Nyati, head of wealth at Swastika Investmart, noted that the company benefits from a loyal student base and a scalable digital content engine. However, she also highlighted key risks, including competition from larger coaching and edtech rivals, regulatory uncertainties, and profitability pressures.
Nyati advised investors to consider booking partial profits while holding onto remaining shares for potential medium-term growth. She suggested setting a stop-loss at Rs 130 to mitigate risks. The current market dynamics indicate that while PhysicsWallah’s stock has faced volatility, its underlying business model and growth prospects may still attract long-term investors.
IPO Details and Company Growth
PhysicsWallah’s IPO, valued at Rs 3,481 crore, is one of the largest in India’s edtech sector. The offering included a fresh issue of Rs 3,100.71 crore and an offer for sale of Rs 380 crore. The IPO was well-received, being subscribed 1.92 times overall, with strong demand from qualified institutional buyers (QIBs) at 2.86 times and retail subscriptions at 1.14 times. Employee bids were particularly robust, with a subscription rate of 3.71 times, aided by a Rs 10 discount.
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has evolved from a YouTube channel into a major player in the edtech space, boasting 13.7 million subscribers and 4.46 million paid users, along with 303 centers as of June 2025. The company reported a 51% increase in revenue for FY25, reaching Rs 3,039 crore, and achieved a net profit of Rs 243 crore, reversing a previous loss of Rs 1,131 crore in FY24. Despite a reported loss of Rs 127 crore in Q1 FY26, the company remains focused on growth and expansion.
Future Plans and Use of IPO Proceeds
The funds raised from the IPO are earmarked for several strategic initiatives, including offline expansion, technology upgrades, cloud capacity enhancements, infrastructure development, marketing efforts, and potential acquisitions. These investments are expected to bolster PhysicsWallah’s position in the competitive edtech landscape and support its growth trajectory.
As the company navigates the challenges of the market, its commitment to innovation and expansion will be crucial in maintaining investor confidence and achieving long-term success. The recent fluctuations in stock price serve as a reminder of the volatility inherent in the market, particularly for new-age companies in the rapidly evolving edtech sector.
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