PhysicsWallah Shares Plunge 15%, Market Value Drops Nearly ₹10,000 Crore

Edtech platform PhysicsWallah Ltd. has seen its shares decline after a robust market debut, yet the stock continues to trade above its initial public offering (IPO) price. The company remains focused on profitability and expansion across India, backed by steady revenue growth from both online and offline channels.

PhysicsWallah Ltd Stock Performance After IPO

Shares of PhysicsWallah experienced a further 15% drop on Thursday, November 20, continuing the decline that started the previous day. Despite this correction, the stock remains 11% above its IPO price of ₹109 per share.

The company’s market capitalisation has fallen to ₹34,888.25 crore, down from nearly ₹45,974.84 crore at the time of listing on November 18. In just three trading sessions, the stock has decreased 16% from its listing price, highlighting the volatility often seen after highly anticipated IPOs.

Successful IPO Debut

PhysicsWallah made a strong start in the market, listing at ₹145 on the NSE and ₹143.10 on the BSE, providing 36% gains compared to its ₹109 issue price.

The ₹3,480-crore IPO received nearly two times subscription, with bids for 33.62 crore shares against 18.62 crore offered. Retail investors subscribed 106%, non-institutional investors (NIIs) 48%, and qualified institutional buyers (QIBs) more than 2.7 times their allotted portion, reflecting strong market interest.

Focus on Profitability

PhysicsWallah is targeting profitability within 12 months, according to co-founder and Whole-time Director Prateek Maheshwari.

Maheshwari emphasized that the company’s growth strategy remains disciplined, focusing on strengthening its existing operations rather than pursuing acquisitions.

“We aim to expand rapidly across southern India, support education in 11 Indic languages, and diversify into multiple exam categories,” Maheshwari said, underlining a commitment to organic growth.

Revenue Mix and Growth Prospects

Currently, 52% of PhysicsWallah’s revenue comes from online platforms, while the remaining 48% is generated from offline centres. Maheshwari stated that this revenue mix will largely remain unchanged, as both segments are growing at a healthy pace.

For the fiscal year 2024-25, the company recorded over 40% revenue growth, and it anticipates maintaining 30%+ growth rates in the coming years.

The company does not have plans for inorganic expansion, preferring to build on its existing network of offline centres and online platforms.

Company Background

Founded in 2016 by Alakh Pandey, PhysicsWallah initially gained popularity by offering free physics lessons on YouTube. The platform rose to prominence during the COVID-19 pandemic when online learning became widely adopted.

Today, the company operates 303 offline centres across 152 cities in India and the Middle East, supporting a mix of online and offline education for various competitive exams.

Conclusion

PhysicsWallah’s stock has experienced early volatility post-IPO, with shares sliding from listing highs but still maintaining a premium over the issue price. The company continues to focus on growth, expansion across India, and achieving profitability within a year. With strong foundations in online and offline education and a clear roadmap for regional and linguistic expansion, PhysicsWallah remains well-positioned in the Indian edtech landscape.