PhysicsWallah Shares Jump 33% on NSE Debut After Strong IPO Response

On Tuesday, PhysicsWallah shares opened at 33% higher than the previous closing price of Rs 109 on NSE. The shares then made a fresh day’s high price of Rs 161.99, translating to around 49% from the upper band IPO price. This strong opening not only surpassed market expectations but also reflected investor interest in India's rapidly evolving education technology sector. This debut has drawn significant attention, as many investors were seeking an early Physics Wallah IPO review to understand market sentiment.

IPO Pricing and Subscription

PhysicsWallah IPO's price band was set at Rs 103 to Rs 109 per share, with a minimum lot size of 137 shares and a required retail investment of around Rs 14,933 based on the upper price band. The offering comprised a worth of Rs 3,100.71 crore fresh issue and an Rs 380 crore offer-for-sale by the company's co-founders, raising the total to Rs 3,480.71 crore. The overall IPO subscription was 1.92 times, in which retail investors subscribed 1.14 times, Non Institutional Buyers held 0.51 times, and Qualified Institutional Buyers (QIB) with 2.86 times.

GMP Trends Before Listing

As per InvestorGain, it recorded PhysicsWallah's GMP at Rs 14 per share prior to listing, indicating estimated listing gains of about 12.84%. While several market watchers expected a moderate premium based on GMP signals, actual listing gains were substantially higher at over 33%, highlighting more robust secondary market demand than anticipated.

Financials Overview

According to PhysicsWallah's Red Herring Prospectus (RHP), the company posted operating revenue of Rs 2,886.6 crore in FY25, a 49% year-on-year increase, driven by the scaling of both online and offline operations. The adjusted operating profit margin stood around 15%, signifying both strong topline growth and healthy cost management. This performance was enabled by continued expansion in regional centers, active course portfolio management, and a talented team executing on technology and delivery. The losses reduced from Rs 1,131.13 crore in FY24 to Rs 243.26 crore in FY25. The gearing ratio also improved significantly from 207.31% in FY24 to 38.21% in FY25, strengthening the company’s balance sheet. These improvements play a crucial role when evaluating PhysicsWallah IPO valuation relative to peers.

Growth Strategies

PhysicsWallah has revealed a focused growth approach, centering on:

• Aggressive expansion of physical centers in regions with high student density, especially in tier-II and tier-III cities.

• Strategic acquisitions of companies, including Xylem and Utkarsh Classes, to deepen subject offerings and diversify geographical exposure.

• Continued investment in technology, with a scalable Learning Management System (LMS), AI-powered platforms for personalised query response (AI Guru), real-time doubt resolution during live classes (Smart Doubt Engine), and automated grading tools (AI Grader).

• Incremental product innovation, such as AI Sahayak for student goal-tracking and TeacherX to streamline live classroom experiences for educators.

• Offline-to-online integration by leveraging the pandemic-induced shift in learning to build a hybrid model across 303 centers in India and the Middle East.

Anchor Investors

Post-offer, market capitalisation stood at about Rs 40,800 crore, with anchor investors like Goldman Sachs, Fidelity Funds, ICICI, Kotak, Nippon, Aditya Birla Sun Life,  Motilal Oswal, Tata, Helios, Invesco, Canara Robeco, Edelweiss, and PGIM Mutual Funds having invested as anchors. Both co-founders continue to hold a majority stake, underscoring long-term alignment with business goals.

PhysicsWallah Share Price Target

Following the stronger-than-expected listing and improved financial performance, many analysts might begin to track PhysicsWallah share price target for the coming quarters. While targets may vary based on growth execution and profitability metrics, the current listing momentum and expanding hybrid model have strengthened investor expectations.