Is PhysicsWallah IPO Good or Bad – Detailed Review

PhysicsWallah Limited’s IPO is set to open its initial public offering from November 11, 2025, to November 13, 2025. When considering applying for this IPO, potential investors might have questions about whether the PhysicsWallah IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive PhysicsWallah IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision.

PhysicsWallah IPO Review

PhysicsWallah Limited's IPO is open for subscription from November 11, 2025, to November 13, 2025, with listing expected on November 18, 2025, on NSE and BSE.

The company is an educational technology company focused on improving learning outcomes for students while solving for accessibility and affordability at scale. It specialises in test preparation courses for competitive examinations like JEE, NEET, and UPSC, along with upskilling and other courses, primarily catering to the Indian and Middle Eastern education markets. 

Its core business focus is built around a multi-channel presence (online, offline, and hybrid), with the offline channel contributing the largest share of revenue from operations at 48.75% for the quarter ended June 30, 2025.

The platform has a large and growing community with 2.43 million total paid users and 6,267 total faculty members as of June 30, 2025. It operates 303 offline centers across 152 cities. Its core operational strength is a proprietary technology stack known as Alakh AI, which includes tools like AI Guru (24/7 personalised doubt resolution) and AI Grader. The company is led by its promoters, Alakh Pandey (CEO) and Prateek Boob. The promoters hold an aggregate of 80.62% of the pre-offer paid-up equity share capital.

The company operates within the high-growth Indian education market, estimated at Rs 15 to 16 lakh crores (USD 185-195 billion) as of FY25. The test preparation market, a core segment, is valued at Rs 1 to 1.1 lakh crores in FY25. The online education market is significantly underpenetrated (around 4% in FY25), indicating massive potential for the hybrid model. 

The industry is highly fragmented and intensely competitive and faces structural challenges like Regulatory Scrutiny (such as GRCC 2024), Curriculum Volatility, and Student Welfare issues. PhysicsWallah competes with major unlisted players like Allen Career Institute and Aakash Educational Services.

PhysicsWallah’s financial performance from FY23 to FY25 reflects robust top-line growth but a history of sustained net losses. Revenue from operations grew strongly from Rs 744.32 crores in FY23 to Rs 2,886.64 crores in FY25 (96.93% CAGR). Profit After Tax (PAT) remained negative, reporting a substantial loss of Rs 243.26 crores in FY25 and a massive loss of Rs 1,131.13 crores in FY24 (primarily due to non-cash charges). 

Operating efficiency, however, showed recovery, with the adjusted EBITDA margin improving strongly from 3.45% in FY24 to 14.96% in FY25. The Return on Adjusted Net Worth (RoNW) recovered from -134.98% in FY23 to -12.50% in FY25.

Key strengths include Market Leadership and Student Community (98.80 million YouTube subscribers for 206 channels), Technology-Driven Affordability and Scale, an Integrated Multi-Channel Ecosystem (online, hybrid, and offline), and Specialised Faculty and Quality Content. 

Risks involve Sustained Losses and Unproven Path to Profitability, Dependence on Founders and High Attrition (36.51% in FY25), Operational Risk from Leased Properties (all centers are leased), Uncertainty of Unidentified Acquisitions, and a growing Regulatory and Compliance Burden.

The IPO consists of a total issue of 31,92,66,054 shares valued at Rs 3,480 crores, comprising an Offer for Sale (OFS) of 3,48,62,385 shares (Rs 380 crores) and a Fresh Issue of 28,44,03,669 shares (Rs 3,100 crores). Primary areas where the Fresh Issue proceeds will be utilized are:

• Capital Expenditure for fit-outs of new offline centers (Rs 460.55 crores) 

• Lease Payments of existing centers (Rs 548.30 crores)

• Server and cloud-related infrastructure costs (Rs 200.10 crores)

• Marketing Initiatives (Rs 710 crores)

• Fund Unidentified Inorganic Acquisitions and General Corporate Purposes (Rs 1,079.37 crores).

The Shares are priced in the band of Rs 103 to Rs 109 per share, with a Lot Size of 137 Shares.

Company Overview of PhysicsWallah IPO

PhysicsWallah is an educational technology company focused on improving learning outcomes for students while solving for accessibility and affordability at scale. The company specializes in test preparation courses for competitive examinations like JEE, NEET, and UPSC, and other courses, such as upskilling, catering primarily to the vast Indian and Middle Eastern education markets.

Its core business focus is built around its multi-channel presence spread across online, offline, and hybrid, which enables widespread accessibility and caters to diverse student preferences. This channel split for the quarter ended June 30, 2025, is detailed below:

The core operational strength is built around a flexible and scalable technology stack known as Alakh AI, with a commitment to improving student experience and operational efficiency. This strength is demonstrated by a proprietary Learning Management System (LMS) and AI-backed tools such as AI Guru, which is a 24/7 personalised doubt resolution, and AI Grader, used to grade subjective written answers, which help deliver engaging pedagogy (teaching methodologies) at scale.

As of June 30, 2025, the platform has a large and growing community, driven by a student-led approach, represented by:

• Total Number of Paid Users: 2.43 million

• Total Faculty Members: 6,267

• Total Offline Centers: 303 across 152 cities, reflecting a CAGR of 165.92% between FY23 to FY25.

The company is led by its two promoters,

• Alakh Pandey (Whole-Time Director and Chief Executive Officer)

• Prateek Boob (Whole-Time Director)

The company's professional board includes

• Deepak Amitabh (Chairperson and Non-Executive Independent Director)

• Nitin Savara (Non-Executive Independent Director)

• Rachna Dikshit (Non-Executive Independent Director)

• Sandeep Singhal (Non-Executive Nominee Director)

The promoters hold an aggregate of 80.62% of the pre-offer paid-up equity share capital on a fully diluted basis.

Industry Overview of PhysicsWallah IPO

PhysicsWallah Limited operates within the Indian education market, a sector undergoing structural transformation, primarily driven by India’s large young population, the rise of middle-income households prioritising essential spending, and increasing digital penetration across Tier 2 and beyond cities.

The Total Addressable Market for the overall Indian education market is estimated to be Rs 15 to 16 lakh crores (approximately USD 185 to 195 billion) as of FY25. This strong trajectory is projected to continue, with the total market expected to grow at a CAGR of around 10% between FY25 and FY30, reaching Rs 24 to 26 lakh crores (approximately USD 300 to 310 billion) by FY30.

The test preparation market, a core segment for PhysicsWallah, is valued at Rs 1 to 1.1 lakh crores (USD 12.5 to 13.5 billion) in FY25, with a projected CAGR of around 13% to reach Rs 1.9-2.1 lakh crores by FY30.

The online education market remains significantly underpenetrated, estimated at only around 4% of the overall education market in FY25, but is projected to increase to around 7% by FY30, indicating massive untapped potential for hybrid models and scalable technology solutions.

The industry is highly fragmented, particularly in the K-12 and test preparation segments, but is rapidly consolidating, with organised players leveraging affordability and superior learning outcomes. However, the sector is intensely competitive and faces structural challenges, including:

• Regulatory Scrutiny: Navigating state and central regulations regarding registration, coaching quality, and prohibitions on misleading advertisements, such as GRCC 2024.

• Curriculum Volatility: Adapting course material and schedules due to frequent changes in competitive exam formats, such as NTA updates to the JEE and NEET syllabus.

• Student Welfare: Addressing societal challenges like negative publicity increasing from mental health issues or student suicides, which subjects education players to increased scrutiny.

Financial Overview of PhysicsWallah IPO

The revenue from operations has shown robust growth, driven by expansion across its online and offline education channels. Revenue increased from Rs 744.32 crores in FY23 to Rs 1,940.71 crores in FY24 and accelerated significantly to Rs 2,886.64 crores in FY25, achieving a high CAGR of 96.93% from FY23 to FY25. This momentum continued into the latest period, with revenue reaching Rs 847.09 crores for the quarter ended June 30, 2025.

In the Operating Efficiency part, core business profitability is seen through increasing margins, derived from leveraging its scalable technology platform and expanding course offerings. The adjusted EBITDA margin demonstrated volatility due to rapid expansion, moving from 16.03% in FY23 to 3.45% in FY24, then recovering strongly to achieve 14.96% in FY25. This recovery reflects improved efficiency and operational leverage, even as margins in the quarter ended June 30, 2025, stood at 3.13%.

Profit After Tax (Restated Loss) has demonstrated volatility primarily due to non-cash fair value adjustments. Net losses increased dramatically from Rs 84.08 crores in FY23 to Rs 1,131.13 crores in FY24 (due to non-cash charges) before being substantially reduced to Rs 243.26 crores in FY25. The loss for the quarter ended June 30, 2025, was Rs 127.01 crores.

The Return on Net Worth (RoNW) tracks the profitability relative to the Net Worth. The RoNW remained negative due to accumulated losses but recovered strongly from -134.98% in FY23 to -12.50% in FY25. For FY24, RoNW is not applicable as the Net Worth was negative. This improvement reflects the narrowing of core losses. The Gearing Ratio, which is Net Debt / Total Capital, declined from 207.31% in FY24 to 38.21% in FY25 due to balance sheet restructuring.

Strengths and Risks of PhysicsWallah IPO

Let's examine the strengths and weaknesses to determine if the PhysicsWallah IPO is a good or bad investment for investors.

Strengths

• Market Leadership and Student Community Command: PhysicsWallah operates India’s largest online student community, with a combined 98.80 million subscribers across its YouTube channels as of June 30, 2025. This strong digital ecosystem has fuelled exponential growth, with the total number of paid users reaching 2.43 million as of June 30, 2025.

• Technology-Driven Affordability and Scale: The company leverages a proprietary, flexible, and scalable "Alakh AI" technology stack. This platform enables the provision of quality education at highly competitive and affordable prices for flagship courses such as JEE, NEET, and UPSC, driving mass adoption and significantly lower marketing costs compared to industry peers.

• Integrated Multi-Channel Ecosystem: PhysicsWallah has successfully expanded beyond online learning into physical channels, operating 303 total offline centres across 152 cities as of June 30, 2025. This multi-channel approach allows seamless cross-selling between online, hybrid (Pathshala), and offline (Vidyapeeth) formats, capitalising on regional demand signals derived from its large online community.

• Specialised Faculty and Quality Content: The company maintains a large pool of specialised faculty (6,267 total faculty members as of June 30, 2025) and a central content library containing over 8.66 million question banks and 4,382 published books. This infrastructure ensures standardised, high-quality content delivery across all platforms and categories.

Risks

• Sustained Losses and Unproven Path to Profitability: The company has incurred substantial restated losses in recent years, including Rs 243.25 crores in FY25 and a massive Rs 1,131.13 crores in Fiscal 2024. It had a negative net worth as of March 31, 2024, and reports a net loss of Rs 127.00 crores for the quarter ended June 30, 2025. There is no assurance that it will achieve or sustain profitability in the future.

• Dependence on Founders and High Attrition: The company's success and brand image are critically dependent on the continued leadership and services of its promoters, Alakh Pandey and Prateek Boob. This reliance is compounded by significant employee attrition, which stood at 36.51% in FY25. Loss of key faculty could severely impact operations and reputation.

• Operational Risk from Leased Properties: All of the company's premises, including its extensive network of offline or hybrid centers and its Registered or Corporate Office, are operated on a leased or licensed basis. The inability to renew key agreements on favourable terms or the risk of non-compliance by lessors could disrupt operations and increase costs significantly.

• Uncertainty of Unidentified Acquisitions: A portion of the IPO proceeds is allocated to funding unidentified acquisitions, the success of which depends on finding suitable targets and successfully integrating them. The company has a history of acquiring businesses such as iNeuron, PrepOnline, from which anticipated synergies and results were not fully realized.

• Regulatory and Compliance Burden: The company is subject to increasing government regulation, such as the Guidelines for Regulation of Coaching Centre (GRCC 2024), state-level coaching institute rules regarding student age limits, safety, and advertising standards. Failure to adhere to evolving and potentially conflicting regulations across different states could lead to penalties, operational restrictions, and adverse effects on business prospects.

Strategies of PhysicsWallah IPO 

• Increase student engagement: Focus on community-building and investing in tech-backed tools like AI-NCERT and personalised study paths to foster affinity and drive organic user acquisition.

• Expand and improve offerings across education categories: Continuing backward (K-12) and forward (upskilling, professional) integration across the education value chain, including launching new courses in multiple languages and offering premium small cohort batches.

• Develop multi-channel presence by growing offline and hybrid channels: Strategically expand the network of physical centers, such as Vidyapeeth and Xylem, in high-demand areas identified through data analytics to increase footprint and meet anticipated student demand.

• Scale operations and introduce new value-added services: leverage the scalable technology stack to continually introduce new value-added services such as Batch Infinity Pro at low incremental cost, allowing for price optimisation, improved margins, and profitability.

• Strategically pursuing inorganic opportunities: Selectively pursue new acquisitions and strategic partnerships that accelerate entry into new education categories, such as law entrance, and new geographies, such as South India expansion through Xylem.

PhysicsWallah IPO vs. Peers

PhysicsWallah Limited operates within the intensely competitive Indian test preparation market, which is dominated by a few large, mostly unlisted, educational service providers. As per the Red Herring Prospectus, they have mentioned, "There are no other companies in the education industry of the same size, scale and business model comparable to ours that are listed in India."

Given this limitation, competitive positioning is measured primarily against unlisted market leaders in the test preparation segment, based on their reported revenue from operations for the most recent comparable period.

Key Players in the Test Preparation Market

Note: The above data is sourced from the RHP. Revenue figures for Allen, PhysicsWallah, Unacademy, and Veranda are based on FY24, while those for Aakash and FIITJEE are based on FY23.

The company showcases a robust and scalable position in the rapidly evolving Indian EdTech market. PhysicsWallah's FY24 revenue from operations of Rs 1,940.71 crores establishes itself as one of the major players, positioning it below Allen and Aakash as a leader in the segment. Its revenue significantly surpasses other established competitors, demonstrating the effective translation of its large online community and affordable multi-channel model into considerable scale.

Note: There are no listed peers for PhysicsWallah, as the information above is provided solely for competitive context in the test preparation sector using available data from unlisted entities, as disclosed in the Red Herring Prospectus.

Objectives of PhysicsWallah IPO

The offering consists of a total of 31,92,66,054 shares worth Rs 3,480 crores, out of which the offer for sale of 3,48,62,385 shares is valued at Rs 380 crores, and the fresh issue of 28,44,03,669 shares is valued at Rs 3,100 crores, respectively. The selling shareholders in this IPO are:

Alakh Pandey and Prateek Boob will receive the offer for sale proceeds. 

However, the fresh issue proceeds will be used for the following objectives:

• Capital expenditure for fit-outs of new offline and hybrid centers for the Company (Rs 460.55 crores)

• Lease Payments of existing identified offline and hybrid centers operated by the Company (Rs 548.30 crores)

• Capital Expenditure for fit-outs of new offline Xylem centers (Rs 31.64 crores)

• Lease Payments for Xylem’s existing identified offline centers and hostels (Rs 15.52 crores)

• Investment in Utkarsh Classes and Edutech Private Limited (Subsidiary) towards lease payments for Utkarsh Classes' offline centers (Rs 28.02 crores)

• Server and cloud-related infrastructure costs (Rs 200.10 crores)

• Marketing Initiatives (Rs 710 crores)

• Acquisition of additional shareholding in Utkarsh Classes & Edutech Private Limited (Subsidiary) (Rs 26.5 crores)

• Unidentified Inorganic Acquisitions and General Corporate Purposes (Rs 1,079.37 crores)

PhysicsWallah IPO Details

IPO Dates

PhysicsWallah IPO will be open for subscription from November 11, 2025, to November 13, 2025. The allotment of shares to investors will take place on November 14, 2025, and the company is expected to be listed on the NSE and BSE on November 18, 2025.

IPO Issue Price

PhysicsWallah is offering its shares in the price band of Rs 103 to Rs 109 per share. This means you would require an investment of Rs. 14,933 per lot (137 shares) if you are bidding for the IPO at the upper price band.

IPO Size

PhysicsWallah is issuing a total number of 31,92,66,054 shares valued at Rs 3,480 crores, out of which the offer for sale comprises 3,48,62,385 shares, worth Rs 380 crores, of which the selling shareholders will receive the proceeds. The remaining 28,44,03,669 shares worth Rs 3,100 crores will be of fresh issue, used for the objects of the issue.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on November 14, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of PhysicsWallah are expected to be listed on the NSE and BSE on November 18, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for PhysicsWallah IPO