PhysicsWallah IPO — What Investors Should Know
This blog will provide detailed information about the upcoming IPO of India’s edtech unicorn PhysicsWallah Limited. It will focus on its business model, recent performance, IPO specification, and Market GMP. It will try to find out whether the retail investor should grab this opportunity.
PhysicsWallah is coming with an IPO of Rs. 3,480 crores. It gives an interesting opportunity for investors to invest in the high-growth edtech sector. But investors must check all the pros and cons of this opportunity before investing.
Brief History of PhysicsWallah
PhysicsWallah Limited (PW) is an Indian education‐technology company with headquarters in Noida, Uttar Pradesh. It offers online and offline courses primarily focused on competitive exams of JEE and NEET. It also offers courses for school board syllabuses.
The co-founder and CEO is Alakh Pandey, who began by teaching physics on a YouTube channel and scaled his teaching into a full edtech platform. His success story is very famous. He has scaled his YouTube channel from free content to a premium edtech brand. His co-founder is Prateek Maheshwar, who joined the venture and helped to scale operations and the business model.
The company achieved unicorn status in 2022 (valuation ~US$1 billion+) and had raised funds from prominent VC firms such as WestBridge and Hornbill Capital.
Business Progress & Milestone achievements of PhysicsWallah
- 2016: Alakh Pandey begins teaching physics on a YouTube channel.
- 2020: Company formally founded as an edtech platform (app + web) by Alakh Pandey and Prateek Maheshwari.
- 2022: Achieves unicorn status after major VC funding round. (valuation ~US$1 billion+)
- FY23: Reported operating revenue ~₹744 crore (restated) from the prior year, much lower.
- FY24: Revenue surges to ~₹1,940 crore; loss widens to ~₹1,131 crore.
- FY25: Revenue ~₹2,886.6 crore, net loss ~₹243.3 crore, EBITDA turned positive ~₹193.2 crore.
- Nov 2025: IPO launch planned ~₹3,480 crore.
Business Model
PhysicsWallah operates in the Indian Ed-tech test preparation space. It started originally as an online model, and now it is expanding rapidly into an offline and hybrid model. Its main target is students preparing for Engineering and Medical entrance exams (JEE & NEET). It is now expanding its courses for various education boards. It is penetrating rapidly even in Tier 2 and Tier 3 cities.
Its business model is high-quality education at affordable prices. Its prices are very low compared to traditional big-name players.
Main source of Income
Its main source of income is fees coming from students of online and Offline courses. But it has got income from various value-added services like (Hostel, Transport), Product sales (Books, merchandise), and partnership and Licensing.
Last 5 Years Financial Figures of Physics
For the years 2021, 2022, very little data is available in the public domain.
Giving below approx last 3 years’ financial data of PhysicsWallah Ltd. (2023 to 2025)
| Fiscal Year | Revenue (₹ crore) | EBITDA (₹ crore) | Net Profit/(Loss) (₹ crore) | Notes |
| FY2023 | 744.30 | – | –84 (loss) | Restated numbers |
| FY2024 | 1940.40 | (-829.4) approx | –1,131 (loss) | Loss deepened |
| FY2025 | 2,886.00 | 193.00 | –243.3 (loss) | Turned EBITDA positive |
With limited data available for FY2021 / 22, from ~₹744 crore (FY23) to ~₹2,887 crore (FY25), in 2 years, PhysicsWallah has given a CAGR of ~90%+.
Details of the IPO
| IPO Issue size | Rs. 3,480 Crore |
| Composition | Fresh issue of ~₹3,100 crore Offer For Sale (OFS) of ~₹380–720 crore |
| Price band | 103 to 109 |
| Lot size | 137 shares per lot |
| IPO open date | 11 November, 2025 |
| IPO Close date | 13 November, 2025 |
| IPO Listing date | 18 November, 2025 |
| Exchange | Listed on NSE and BSE |
| Registrar | MUFG Intime India Pvt. Ltd |
Readers should note that GMP refers to the listing gain expected from IPO. It gives a rough indication of investor sentiment but is not a guarantee of listing price or performance. As of November 8, 2025, the Grey Market Premium (GMP) for the Physics Wallah IPO was Rs. 4, dropping from Rs. 5 the previous day.
Pros of Investing in PhysicsWallah IPO
- Huge market opportunity: India’s competitive exam coaching market and edtech segments remain substantial and under-penetrated.
- Strong growth in FY25: The Company achieved Revenue growth from ~49% to ~₹2,887 crore; EBITDA turned positive in 2025.
- Offline expansion: The company is successfully growing its hybrid/offline model. This opens a new and unending market to the company.
- Brand recognition: The “PhysicsWallah” enjoys high brand value. The success story of Alakh Pandey is very popular among students and parents, which gives the brand a competitive edge over competitors.
- Scalability & margins potential: As fixed costs are absorbed, the company can expect high profit margins. Profit margin will improve over the passing of time.
Cons & Risks
- Competitive and regulatory risk: The edtech sector in India is crowded with many big brand players. (e.g., Allen, Vedantu, Unacademy) and it is also subject to regulatory oversight, changes in exam formats, etc.
- History of losses: Despite recent improvement, the net loss in FY24 was ~₹1,131 crore.
- Execution risk: Offline expansion requires significant capex/leasing, and mixing online and offline may reduce agility.
- Valuation risk: At the top of the band (~₹109), the valuation implies a high multiple, given that earnings remain negative.
- Macro/discretionary spend risk: Coaching fees are discretionary; any slowdown in student enrolment or economic headwinds could hit revenue.
Conclusion
- The PhysicsWallah IPO is one of the exciting opportunities to invest in India’s edtech segment this year.
- If investors believe in the large growth potential of the Indian edtech industry and have faith in PW’s offline/online hybrid model. They should grab this opportunity.
- Its strong growth history, brand presence, and hybrid expansion strategy make it an attractive proposition. However, the high valuation, prior history of losses, and execution risks (especially in offline scaling) signal investors to be cautious.
- Final Take:- PhysicsWallah is a high-growth and moderate-risk stock. Its valuation is high, but if you are growth investors. Believe in the growth of the Edtech sector in India. Ready to take moderate risk. You can bet on this stock. As the listing gain is very low, i.e., Rs. 4/-, Investors should keep a long-term view to generate profit. It is a future growth stock to keep in a small portion of your diversified portfolio.
Note:- We are not giving any stock recommendation in this article. Before investing, investor should make their own self-study and consult a Financial Advisor.
Readers will also like to read blogs on the following topics
3. Basics of the Future and options
4. PE Ratio
6. Bull vs Bear Phase in the Stock Market
7. XIRR vs CAGR vs Absolute Return
8. Home