Should You Invest in PhysicsWallah IPO? Full Review, Valuation & Long-Term Outlook

Key Takeaways

• IPO Date: Opens Nov 11 and closes Nov 13, 2025
• Price Band: ₹103–₹109 per share
• Issue Size: ₹3,480 crore (Fresh Issue ₹380 crore + OFS ₹3,100 crore)
• Market Cap: ₹31,526.73 crore (post-issue)
• Swastika Rating: AVOID – High valuation and continued losses

Introduction: A Unicorn Steps Into the Stock Market

India’s popular edtech unicorn PhysicsWallah (PW), founded by Alakh Pandey in 2020, has been a household name for JEE and NEET aspirants. Known for democratizing education through affordable online learning, PW has expanded aggressively into offline hybrid centers, test prep, and upskilling segments.

Now, with its Initial Public Offering (IPO) hitting the markets from November 11–13, 2025, investors are keen to know whether this high-profile listing is a good bet.

Let’s break down the financials, valuation, risks, and long-term outlook to see if you should invest in the PhysicsWallah IPO.

Company Overview: From YouTube Channel to Edtech Empire

PhysicsWallah began as an educational YouTube channel and quickly evolved into a full-fledged edtech platform. Today, the company caters to:

• Students from Classes 6–12
• Aspirants for competitive exams like JEE, NEET, UPSC, SSC, and Banking
• Professionals seeking upskilling courses in data science, software development, and finance

As of June 2025, PhysicsWallah has:

• 4.46 million paid users (CAGR of 59.19% since FY23)
• 4.13 million unique online transacting users
• 0.33 million students in offline centers
• 303 centers, 6,267 faculty, and 18,028 employees across India
• Published 4,382 books in FY25

This scale makes PhysicsWallah a strong brand in the competitive education market.

Objects of the Issue:

• Setting up new offline and hybrid centers
• Lease payments for existing facilities
• Acquisition of additional stake in Utkarsh Classes & Edutech Pvt. Ltd

Despite strong revenue growth, PhysicsWallah remains loss-making, reporting a net loss of ₹243 crore in FY25.

Its EV/EBITDA multiple of 145.4× and negative EPS (-0.93) reflect overvaluation and limited near-term profitability visibility.

Valuation & Outlook: Caution Advised

Swastika Investmart has assigned the IPO an “AVOID” rating.
Here’s why:

• High valuation: EV/Sales multiple far exceeds industry benchmarks.
• Loss-making: The company has been consistently in red despite revenue growth.
• Uncertain profitability timeline: With heavy investments in offline expansion, breakeven could take several years.
• No listed peers for valuation comparison in India’s pure edtech space.

While PhysicsWallah’s brand equity is strong and its hybrid model promising, the valuation doesn’t justify the underlying financials yet.

Key Strengths

• Rapid user growth with a robust hybrid learning model
• Proprietary tech stack improving user experience
• Strong faculty and diversified content base
• Deep brand recall among students across Tier 2 and Tier 3 cities

Key Risks

• High dependence on a few star educators
• Fierce competition from BYJU’s, Unacademy, Vedantu, and offline coaching leaders
• Regulatory uncertainty around education content and data privacy
• Cost pressure from expanding offline centers
• Reputation risk from exam-related controversies

Market Context: Edtech’s Second Wave

The Indian edtech sector is witnessing a transition from pure-play online learning to blended offline models. Post-pandemic, students increasingly prefer physical classrooms backed by digital tools — the very model PW is betting on.

However, with funding challenges, regulatory scrutiny, and rising operational costs, only players with sustainable profit models will survive.

For retail investors, PhysicsWallah’s IPO serves as a case study of brand strength vs. balance sheet weakness.

Expert View: Should You Apply?

Conservative investors should wait for profitability visibility before entering.
Short-term listing gains appear limited given the high issue price and negative P/E ratio.
However, if the company manages to turn profitable over the next few years, it could emerge as a leader in India’s edtech 2.0 era.

FAQs

1. What is the PhysicsWallah IPO price band?
The IPO is priced between ₹103–₹109 per share.

2. When will PhysicsWallah shares list on the stock exchange?
Shares are expected to list on November 18, 2025, on BSE and NSE.

3. Is PhysicsWallah profitable?
No, the company has reported losses for the last three years, including a net loss of ₹243 crore in FY25.

4. Should retail investors apply?
According to Swastika Investmart’s analysis, investors should avoid the IPO for now due to high valuation and limited profitability visibility.

5. What is the use of IPO proceeds?
Funds will be used for expansion of offline centers, lease payments, and acquisition of stake in Utkarsh Classes.

Conclusion: Wait and Watch

Physics Wallah’s IPO is an important milestone for India’s edtech story. The company has strong fundamentals in user growth and brand visibility but lacks profitability. With the “AVOID” recommendation from Swastika Investmart, investors are advised to wait for future performance clarity before investing.

If you wish to explore well-researched IPOs and investment opportunities with expert guidance —

👉 Open your account with Swastika Investmart today.