PW shares rally 5% as analysts back EdTech’s growth story
The stock opened at ₹123.37 and has seen heavy trading, with over 28 lakh shares changing hands and a traded value of ₹356.52 crore by 12.10 pm.
PhysicsWallah shares surged 5.07% to ₹126.71 on Friday midday, buoyed by analysts' confidence in the EdTech firm's growth prospects. The stock opened at ₹123.37, with heavy trading volumes of over 28 lakh shares trading hands, generating a turnover of ₹356.52 crore by 12.10 pm. The company's market capitalisation currently stands at around ₹36,783 crore.
Analysts lean heavily towards selling, with 66.61% of the order quantity on the sell side against 33.39% on the buy side, indicating profit-taking despite the stock's upward momentum. PhysicsWallah's 52-week price range is ₹77.72 to ₹161.99, suggesting the stock is still below its November 2025 listing peak. Motilal Oswal Securities upgraded the stock to Buy and set a target price of ₹200, highlighting its capital efficiency in the EdTech sector.
The firm boasts a massive YouTube subscriber base of over 100 million, providing a cost-effective customer acquisition advantage. It projects revenue to expand at a 28% compound annual growth rate (CAGR) through FY30, with pre-IND AS EBITDA margins projected to rise from 26% to 30% by FY28. JM Financial reaffirmed its Buy rating, with a September 2027 target price of ₹150.
Analyst Swapnil Potdukhe predicts the company will double its pre-IND AS EBITDA in FY27, driven by a 30%+ growth in its online business and improved economics at offline centres. JM Financial anticipates consolidated revenue to grow at a 24% CAGR from FY26 to FY29, with EBITDA potentially increasing fivefold by FY29 from ₹3 billion in FY26.
Recent quarterly results show net sales rising 50.72% YoY to ₹918.80 crore in Q4 FY26, while net losses narrowed significantly to ₹74.89 crore from ₹293.10 crore in the same period a year earlier. The company plans to hold its sixth Annual General Meeting on September 25, 2026. Analysts caution about competitive pressures, lower-than-expected offline performance, and possible regulatory changes impacting coaching institutions.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
