Physicswallah Shares Surge 10% on Record Q2 Revenue

Shares of ed-tech platform Physicswallah jumped 10% on Thursday after the company reported a record show for the second quarter of the fiscal year 2026-27 (Q2 FY27), although offline performance was subdued as NEET business lagged when compared to last admission cycle given delay in results cycle. Physicswallah’s share price rose to the day’s high of ₹140 on the BSE, up 9.85% against the last close of ₹127.45. The stock pared half of its gains and was last trading 4.4% higher at 133.05 around 11 AM.

Trading activity remained high as 27.8 million shares changed hands so far on BSE and NSE combined. The stock listed on the bourses on November 18 last year and trades 28% above the offer price of ₹109 based on the day’s high. So far this year, its performance has been lacklustre as it trades largely unchanged.

Physicswallah Q2 results
Physicswallah posted its highest-ever quarterly revenue of ₹1,242 crore, up 18.2% year-on-year (YoY) and its consolidated profit doubled, rising 106% YoY to ₹144 crore.

ALSO READ: PhysicsWallah Q2FY27 profit doubles to ₹142 crore, revenue rises 18%

Online revenue grew more than expected by 26% to ₹694 crore in Q2, while offline revenue missed estimates as it grew 9% to ₹541 crore.

“While the online business has been able to manage the impact, the high dependence of Xylem and VidyaPeeth on NEET is resulting in slower-than-expected growth in the offline business. That said, we expect the offline business to be near breakeven this year, with the company turning PAT-positive in FY27,” said Motilal Oswal Financial Services (MOFSL).

Going ahead, the company retained its full year growth guidance of ~30% with a built-in cushion of buy-outs ($20 million has been earmarked).

Physicswallah Shares Surge on Record Q2 Revenue

Should you buy Physicswallah shares? While FY27 growth is likely to be relatively subdued due to the disruption in the NEET cycle, analysts see expansion into new categories like online K-12, early learning and upskilling to drive long-term growth.

These newer categories, which generally command higher ASPs, should support growth and reduce dependence on core JEE/NEET preparation, said MOFSL in a note. “We expect these initiatives to drive ~30% revenue CAGR over the next three years, with further upside potential from a successful expansion into Southern India,” it added.

Analysts Predict Long-Term Growth Despite NEET Disruption

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PL Capital cut the pre-IND AS EBITDA estimates by 2% and 3% for FY28E and FY29E, respectively, as it fine-tunes growth assumptions for the offline business. Overall, led by new initiatives, it expects revenue and pre-Ind AS EBITDA to log 25%/66% CAGR over FY26-29E.

“The stock trades at 37x/23x over our pre-Ind AS EBITDA (adjusting for ESOP cost) estimate for FY28E/FY29E. Retain ACCUMULATE with a SoTP-based TP of ₹140,” said the brokerage.

On the other hand, MOFSL has a more optimistic target of ₹200. “Short-term fluctuations aside, we expect Physicswallah to generate ₹2160 crore of pre-Ind AS EBITDA by FY30, driven by a 25-30% revenue CAGR and expanding margins. Its mature categories are already delivering EBITDA margins of ~50%, while the asset-light business model offers significant operating leverage as the business scales. We see significant upside potential from sustained earnings delivery,” it argued.