Physicswallah Ltd
Physicswallah Ltd
Consumer DiscretionaryPhysicswallah is an edtech company offering test preparation courses for various competitive examinations like JEE, NEET, UPSC, etc., and upskilling courses like Data science and analytics, banking and finance, software development, etc[1]
Physicswallah demonstrates exceptional revenue growth at 35% TTM and 74% 3-year CAGR with strong analyst support (86% buy ratings), but the stock trades at a steep negative PE of -1438x indicating deep losses, 7.28x book value, and deteriorating working capital (227 days vs 9.3 days prior). The risk-reward is skewed given the lack of profitability visibility despite the compelling top-line narrative.
Key Fundamentals
Technical Indicators
Key Insights
Strengths
1- Company has reduced debt.
Weaknesses
4- Stock is trading at 7.92 times its book value
- Company has low interest coverage ratio.
- Earnings include an other income of Rs.179 Cr.
- Working capital days have increased from 9.30 days to 227 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoPhysicswallah demonstrates exceptional revenue growth at 35% TTM and 74% 3-year CAGR with strong analyst support (86% buy ratings), but the stock trades at a steep negative PE of -1438x indicating deep losses, 7.28x book value, and deteriorating working capital (227 days vs 9.3 days prior). The risk-reward is skewed given the lack of profitability visibility despite the compelling top-line narrative.
- Revenue growing at 74% CAGR over 3 years, indicating rapid market share gains in the edtech space
- TTM sales growth remains robust at 35%, showing sustained momentum even on a larger base
- Profit growth at 87% TTM suggests losses are narrowing significantly on a sequential basis
- 86% of analysts (6 out of 7) rate the stock a Buy, reflecting strong Street conviction
- Company has reduced debt, improving balance sheet flexibility for future investments
- Market cap of Rs.32,972 Cr reflects institutional confidence in long-term edtech TAM opportunity
- Zero analyst Sell ratings out of 7 total coverage initiations signals consensus optimism
- 3-year compounded profit growth of 23% indicates a trajectory toward breakeven
- Negative PE of -1438x confirms the company is still loss-making with no near-term earnings visibility
- Working capital days ballooned from 9.3 days to 227 days, signaling severe cash conversion deterioration
- Trading at 7.28x price-to-book is expensive for a company with negative ROE and no profitability
- Other income of Rs.179 Cr inflates reported numbers and masks true operating performance
- Low interest coverage ratio indicates operating profits are insufficient to service debt obligations
- Zero dividend yield with no visibility on when shareholder returns can commence
- ROE and ROCE are unavailable/null, making it impossible to assess capital efficiency
- No 52-week high/low data available (both at 0), limiting technical and valuation context for a recently listed stock
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- CCPA fine for dark patterns May 30
CCPA fined PhysicsWallah ₹5 lakh for pre-selected donations and misleading 'free' course claims, directing immediate discontinuation of basket sneaking, confirm shaming, and forced action practices.
- Q4 sequential revenue decline 15% May 27
Revenue fell 15% quarter-on-quarter to ₹919 crore from ₹1,082 crore in Q3 FY26, swinging to a ₹75 crore loss versus ₹101 crore profit in Q3.
- Stock down 20%+ in 2026 YTD Jun 4
Shares have lost over 20% year-to-date and roughly 19% since the November 2025 listing at ₹161.99, with the 52-week low at ₹77.72 in March 2026.
- JEE/NEET core showing maturation May 28
Core JEE and NEET test-prep growth has slowed to 3-4% due to high penetration in North India, with their share of online enrollments falling from 54% in FY23 to 29% in FY26.
- Teacher backlash over sales roles Jun 4
Current and former CuriousJr employees report teachers are being assessed on retention, renewals and referrals rather than academics; 16 of 250+ mentors were let go for not meeting revised metrics.
- Employee costs rising sharply May 27
Employee expenses climbed to ₹1,735 crore in FY26 from ₹1,310 crore in FY25, a 32% increase reflecting aggressive workforce expansion.
- NBFC pivot cuts balance-sheet risk Jun 4
PhysicsWallah reversed its ₹120 crore FinZ Finance lending plan, partnering with regulated third-party NBFCs instead; shares surged 17.7% on the announcement as investors welcomed the asset-light shift.
- FY26 losses near zero, PBT positive May 29
Net loss narrowed 90% to ₹24 crore from ₹243 crore in FY25, with profit before tax of ₹10 crore achieved for the first time and EBITDA surging 184% YoY to ₹549 crore.
- Revenue nearly doubled to ₹3,900 cr May 27
FY26 operating revenue grew 35% YoY to ₹3,900 crore, with Q4 revenue up 50.7% YoY to ₹919 crore driven by offline expansion and online premiumisation.
- FY27 guidance: 30%+ growth, profitability May 29
Co-founder Prateek Maheshwari guided for 30%+ revenue growth and another 100% EBITDA improvement in FY27, targeting the company's first full-year PAT profitability.
- Paid users up 20% to 5.34M May 27
Paid users grew 20% to 5.34 million in FY26, with online transacting users reaching 4.87 million and offline enrolments doubling to 470,000 across 353 centres.
- Goldman and HSBC raise targets May 29
Goldman Sachs raised target to ₹133 (neutral) and HSBC maintained buy with ₹135 target, forecasting a FY26-30 EBITDA CAGR of 60%.
- State boards grew 9x, Curious Jr 4x May 29
State boards vertical grew nearly nine-fold between FY25 and FY26 reaching 393K enrollments and turning EBITDA positive, while CuriousJr expanded four-fold.
- Strong cash position at ₹359 crore May 29
Cash and equivalents stood at ₹359.50 crore as of March 2026 versus ₹53.71 crore a year prior, with total treasury of ₹5,027 crore providing substantial expansion runway.
- Investor meets in Mumbai, Singapore Jun 12
PhysicsWallah scheduled analyst and investor meetings on June 11-12 in Mumbai, June 17 in Mumbai, and June 18-19 in Singapore covering general business outlook.
- Promoters confirm no share encumbrance Jun 9
Promoters Alakh Pandey and Prateek Boob confirmed no shares were encumbered in FY26, holding over 103 million shares each.
- Kotak Corporate Day attendance Jun 3
PhysicsWallah will attend the Kotak India Corporate Day in Singapore on June 9-10, 2026, covering general business outlook.
- Auditors re-appointed for FY27 May 27
Board re-appointed Grant Thornton Bharat LLP as Internal Auditor and Bahadur Murao & Co. as Cost Auditor for FY 2026-27.
- ₹120 cr FinZ Finance investment approved May 27
Audit committee approved ₹120 crore equity infusion into wholly-owned NBFC subsidiary FinZ Finance at ₹45/share; strategic direction to be decided later after the subsequent NBFC partnership pivot.
TL;DR: PhysicsWallah is executing a strong growth-to-profitability transition with FY26 losses near zero, 184% EBITDA growth, and revenue approaching ₹3,900 crore. The quick reversal of its in-house lending plan in favor of NBFC partnerships was well-received by markets, removing a key overhang. Risks include sequential Q4 revenue decline, core JEE/NEET segment maturation, rising employee costs, and the stock still trading well below listing levels. The trend is improving operationally, and FY27 profitability guidance provides a clear catalyst if execution continues.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 832 | 810 | 610 | 847 | 1,051 | 1,082 | 919 |
| Expenses | 698 | 626 | 838 | 923 | 870 | 846 | 890 |
| Operating Profit | 134 | 184 | -229 | -76 | 181 | 236 | 29 |
| OPM % | 16% | 23% | -38% | -9% | 17% | 22% | 3% |
| Other Income | 31 | 40 | 25 | 55 | 47 | 41 | 36 |
| Interest | 13 | 19 | 28 | 33 | 25 | 21 | 23 |
| Depreciation | 89 | 93 | 98 | 98 | 105 | 113 | 122 |
| PBT | 62 | 111 | -330 | -152 | 99 | 144 | -81 |
| Tax % | 34% | 31% | -12% | -16% | 29% | 29% | -14% |
| Net Profit | 41 | 77 | -289 | -127 | 70 | 102 | -69 |
| EPS in Rs | 7.42 | 15.11 | -1.34 | -0.55 | 0.33 | 0.35 | -0.26 |
Profit & Loss
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Sales | 233 | 744 | 1,941 | 2,887 | 3,900 |
| Expenses | 99 | 766 | 2,098 | 2,688 | 3,530 |
| Operating Profit | 134 | -22 | -157 | 199 | 370 |
| OPM % | 57% | -3% | -8% | 7% | 9% |
| Other Income | 2 | 28 | -672 | -6 | 179 |
| Interest | 0 | 21 | 65 | 85 | 102 |
| Depreciation | 4 | 75 | 298 | 366 | 437 |
| PBT | 132 | -89 | -1,193 | -259 | 10 |
| Tax % | 25% | -6% | -5% | -6% | 344% |
| Net Profit | 98 | -84 | -1,131 | -243 | -24 |
| EPS in Rs | 16.37 | -13.57 | -173 | -0.99 | -0.08 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Equity Capital | 6 | 6 | 6 | 218 | 286 |
| Reserves | 100 | -189 | -1,252 | 472 | 4,234 |
| Borrowings | 0 | 956 | 2,461 | 1,831 | 1,052 |
| Other Liabilities | 67 | 1,307 | 1,270 | 1,647 | 2,104 |
| Total Liabilities | 173 | 2,080 | 2,485 | 4,168 | 7,677 |
| Fixed Assets | 27 | 1,121 | 1,464 | 1,586 | 1,833 |
| CWIP | 6 | 5 | 0 | 9 | 5 |
| Investments | 24 | 205 | 173 | 1,401 | 2,426 |
| Other Assets | 116 | 748 | 848 | 1,172 | 3,413 |
| Total Assets | 173 | 2,080 | 2,485 | 4,168 | 7,677 |
Cash Flow
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Operating | 59 | 270 | 212 | 507 | 833 |
| Investing | -58 | -1,076 | -43 | -1,513 | -3,282 |
| Financing | 0 | 848 | -165 | 1,007 | 2,755 |
| Net Cash Flow | 1 | 42 | 4 | 0 | 306 |
| Free Cash Flow | 37 | 124 | 1 | 340 | 494 |
| CFO/OP | 69 | -1,354 | -139 | 256 | 233 |
Ratios
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Debtor Days | 0 | 6 | 5 | 5 | 8 |
| Inventory Days | — | 174 | — | — | — |
| Days Payable | — | 398 | — | — | — |
| Cash Conversion Cycle | 0 | -217 | 5 | 5 | 8 |
| Working Capital Days | -82 | -214 | -111 | -88 | 227 |
| ROCE % | — | -15% | -37% | -2% | 4% |
Documents
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Company Information
Physicswallah is an edtech company offering test preparation courses for various competitive examinations like JEE, NEET, UPSC, etc., and upskilling courses like Data science and analytics, banking and finance, software development, etc[1]