PhysicsWallah Ltd.
It is much more than just Physics.
Physicswalla Ltd. (PL) started as a YouTube education channel in 2016 by Alakh Pandey and has since grown into one of India’s largest edtech brands. PL is a well-known technology-based education firm preparing students for major competitive examinations such as JEE, NEET, Chartered Accountancy, UPSC, GATE, MBA, Board exams, banking and other professional courses. The company’s educational activities extend well beyond the subject of Physics, covering diverse academic and professional areas.
The main promoters of the company are Alakh Pandey and Prateek Boob, who together hold over 80.6% of the company’s equity. The remaining 20% is held by private equity and venture capital investors. The offer for sale (OFS) is by the promoters while private equity fund investors are not participating in the encashment process.
Major investors and their respective holdings are as follows:
- WestBridge Capital & affiliate – 9.2%
- Hornbill Capital – 4.41%
- GSV Ventures – 2.85%
- Lightspeed Venture – 1.79%
Each of these investors has played a significant role in the company’s growth. Beyond financial backing, they have contributed valuable strategic inputs such as:
- Designing an aggressive setup of micro hubs and regional learning centres, along with leadership development initiatives.
- Providing access to best practices in digital learning, technology scaling and talent strategy.
- Supporting diversification into new verticals beyond K-12 and test preparation including postgraduate education, skill development and strategic acquisitions.
IPO details:
| Name of the Company | Physicswallah | |
| Issue Open | 11-11-2025 | |
| Issue closes | 13-11-2025 | |
| Issue Size | Rs. in cr. | |
| Fresh issue | 3,100 | |
| Offer for sale | 380 | |
| Face Value per share | Rs. | 1 |
| Upper issue price band | Rs. | 109 |
PL operates over 200 educational centres, employs over 5,000 teachers, and has a large online audience of 1.4 crore viewers on YouTube. The company plans a fresh issue of shares worth Rs 3,100 crore to finance expansion by establishing new offline and hybrid centres, investing in brand building, covering rent and lease paymensts, and upgrading IT infrastructure.
Financial Performance:
PL recorded CAGR of 98% between FY23 and FY25 with revenue rising from Rs. 773 crore to Rs 3,039 crore. For FY23, its losses grew from Rs. 84 crore to Rs 1,131 crore in FY24 due to one-time expenses but reduced significantly to Rs. 243 crore in FY25.
The company’s income from other sources includes hostel fees, transportation and product sales such as books and merchandise with product sales rising 74% to Rs 259 crore in FY25.
| Particulars | Jun-25 | Jun-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) |
| Number of months | 3 | 3 | 12 | 12 | 12 | |
| Total income | 905 | 660 | 3039 | 2015 | 773 | 98.3% |
| Net Profit/ (-) Loss | -127 | -72 | -243 | -1131 | -84 | |
| EPS | (0.5) | (0.2) | (0.9) | (4.8) | (0.4) |
Despite reporting losses, PhysicsWallah entered the market, becoming an exception in India’s startup ecosystem by proceeding with an IPO despite continued losses. Losses further widened for the three months ended 30th June 2025 even with higher income. Its main competitors include Byju’s, Unacademy, Vedantu, Klassroom and Embibe. Byju’s, the largest edtech company, is facing a liquidity crunch and has begun downsizing. While Byju’s, Unacademy and PL continue to incur losses, Vedantu turned profitable with strong revenue growth of 55% to Rs 284 crore in FY25.
JK Shah Classes remains a niche coaching leader focused on CA, CS and CMA aspirants, valued in 2022 at about 4.7 times its estimated revenue of Rs 100 crore. Larger players like Byju’s and PhysicsWallah command higher valuation premiums due to their scale, diversified offerings and growth potential.
Key risk factors:
| Category | Risk Factors |
| Business | Dependence on offline centres, student retention and quality success |
| Financial | History of losses and potential for continued losses |
| Key Person | Heavy dependency on founder |
| Market & Competition | Intense competition and changing market dynamics |
It is still too early to assess when the company will achieve profitability. The grey market premium (GMP) remains modest at around 5%. However, investors are cautious following the under-listing of Orkla below its GMP. For a major startup like PhysicsWallah, valuation at over eleven times its revenue warrants a cautious approach.
Disclaimer:
The writer is not a SEBI-registered analyst. The writer or their friends and relatives may or may not participate in the IPO. This article is solely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
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