PhysicsWallah IPO Review: Strengths, Challenges & Key Numbers

Introduction

PhysicsWallah Ltd., one of India’s fastest-growing edtech platforms, is coming up with its initial public offering (IPO) to raise ₹3,480.00 crore. The issue comprises a fresh issue of ₹3,100.00 crore and an offer for sale of ₹380.00 crore by existing shareholders.

Founded in 2020 by Alakh Pandey and Prateek Boob, PhysicsWallah (PW) has transformed from a YouTube channel into a comprehensive education technology ecosystem that offers online, hybrid, and offline learning solutions across India.

The following sections explore PhysicsWallah’s business operations, market position, financial performance, and IPO details as disclosed in its Red Herring Prospectus (RHP).

Company Overview

PhysicsWallah Ltd., incorporated in 2020, operates a blended learning platform providing test preparation and upskilling programs for a wide range of examinations and professional domains. The company offers courses for JEE, NEET, UPSC, SSC, and state boards, as well as emerging fields such as data science, banking & finance, and software development.

PW follows a multi-channel learning model, offering education through its website, mobile applications, and tech-enabled offline and hybrid centers across India.

As of June 30, 2025, PhysicsWallah had:

• 4.13 million unique online transacting users
  
• 0.33 million students enrolled across offline centers
  
• 303 total offline centers
  
• 6,267 faculty members
  
• 18,028 employees
  
• 4,382 books published
  
• 13.7 million YouTube subscribers (as of July 15, 2025)
  

The company is among India’s top five edtech players by revenue, serving learners across 13 education categories.

Industry Context

India’s edtech industry has undergone a paradigm shift over the last decade, accelerated by digital penetration, affordability of data, and increased acceptance of hybrid learning models post-pandemic.

Key trends shaping the industry include:

• Hybrid Education Model: Growing demand for tech-integrated offline centers blending digital content with classroom learning.
  
• Localized Learning Expansion: Rising focus on Tier II and III cities, driving regional content and affordable education.
  
• Upskilling and Lifelong Learning: Increasing adoption of online professional courses in finance, tech, and data analytics.
  
• Technology-First Experience: Use of AI, analytics, and adaptive platforms to personalize learning and improve outcomes.
  

With India’s education market projected to reach USD 313 billion by 2030, the segment remains one of the most promising in the digital economy.

Business Strengths

1. Large and Engaged Learner Base:
   4.46 million total paid users in FY25, growing at a CAGR of 59.19% from FY23–FY25.
2. Multi-Channel Presence:
   Strong integration across online, offline, and hybrid modes, ensuring flexibility and accessibility for learners nationwide.
3. Proprietary Technology Stack:
   Innovative learning management systems, live streaming tools, and data-driven analytics enhance student engagement and outcomes.
4. Expert Faculty and Content Quality:
   Specialized educators across subjects, backed by standardized and high-quality content creation processes.
5. Visionary Leadership:
   Driven by founders with a deep understanding of India’s education landscape and a mission to make quality learning affordable.
6. Diversified Offerings:
   From school and test prep to professional upskilling, the company continues to diversify across learning categories.

Risks and Challenges

While PhysicsWallah is one of India’s most recognized edtech brands, investors should weigh the following considerations before investing:

• Intense Competition: Faces competition from established edtech players such as BYJU’S, Unacademy, and Vedantu.
  
• Dependence on Key Personnel: Heavy reliance on founder Alakh Pandey’s personal brand and teaching appeal.
  
• Operational Costs: Significant expenditure towards expansion, marketing, and offline infrastructure may impact profitability.
  
• Regulatory Environment: Subject to evolving government norms on education and data privacy.
  
• Profitability Concerns: Despite strong revenue growth, losses have persisted due to high operating expenses.
  

Financial Performance

Financial Summary (₹ in crore)

Source: RHP | Chittorgarh

Key Ratios & Metrics (as of March 31, 2025) 

• EBITDA Margin: 6.69% 
• PAT Margin: -8.43% 
• RoNW: -12.50% 
• Price-to-Book Value: 14.10

Despite a net loss in FY25, the company demonstrated significant margin improvement and stronger cost efficiency, signaling a path toward eventual profitability.

Source: RHP | Chittorgarh

PhysicsWallah IPO Details

Source: RHP | Chittorgarh

Market Outlook & GMP Trends

As of November 10, 2025, early grey market trends suggest cautious optimism around the PhysicsWallah IPO, with a GMP of ₹5 as on Nov 7, 2025, 11:31 AM. Analysts expect modest listing gains driven by brand familiarity, but valuations remain aggressive considering the company’s current losses.

Source: Chittorgarh

Corporate & Market Profile

The PhysicsWallah IPO is a landmark event in India’s edtech journey, highlighting the growing investor confidence in scalable education technology platforms.

Highlights:

• Strong Brand Recognition: Trusted by millions of learners for affordable quality education.
  
• Diversified Offerings: Test prep, upskilling, and hybrid education formats cater to multiple learner segments.
  
• Rapid Expansion: Over 300 offline centers across India by mid-2025.
  
• Vision-Driven Founders: Leadership committed to democratizing education access nationwide.
  
• Tech-Enabled Growth: Investments in cloud infrastructure and proprietary tools for seamless learning delivery.
  

The IPO positions PhysicsWallah as a key player to watch in the ₹30,000+ crore Indian edtech market.

Valuation & Peer Comparison

As per the RHP, PhysicsWallah Ltd. reported a pre-IPO EPS of -₹0.93 and RoNW of -12.50% for FY25. At the upper price band of ₹109, the P/E ratio is not meaningful due to negative earnings, underscoring the company’s long-term growth narrative rather than near-term profits.

Key Listed Peers:

• BYJU’S (Unlisted) – India’s largest edtech player
  
• Eruditus Learning – Upskilling and global executive education
  
• Veranda Learning – Listed edtech company with hybrid model presence
  

Compared to peers, PW’s strong brand equity, diversified channels, and deep regional penetration stand out as major advantages.

Conclusion

The PhysicsWallah IPO marks a milestone for India’s edtech landscape, representing the sector’s evolution from online test prep to a robust hybrid education ecosystem. For investors, this IPO offers exposure to a high-growth, tech-led education brand with expanding offline reach and a loyal learner base. However, with ongoing losses and competitive pressure, the stock suits long-term investors who believe in the scalability and future of India’s edtech industry.

Source: DRHP, RHP

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