PhysicsWallah’s blistering market debut is already losing its shine. Shares of the edtech company skidded as much as 9% to Rs 130.65 on the BSE on Thursday, pulling its market capitalization below Rs 37,700 crore and erasing nearly Rs 8,609 crore in just three sessions, an abrupt reversal that has rattled investors who only days ago cheered one of India’s most hyped IPOs of the year.
Shares of PhysicsWallah listed on November 18 with a 33% premium at Rs 145 on the NSE and Rs 143.10 on the BSE, and surged further on debut day to close at Rs 156.49, up nearly 44% from its IPO price of Rs 109. But the rally fizzled almost as fast as it arrived.
On the second day of trade, the stock tumbled nearly 11% to an intraday low of Rs 138.54 before ending 8% lower at Rs 143.28. The sell-off deepened on Thursday, with the shares slipping more than 9%.
Despite the pullback, the stock remains more than 20% above the IPO price.
At its peak on debut day, PhysicsWallah commanded a market value of nearly Rs 46,300 crore. That has now shrunk below Rs 37,700 crore, marking a swift erosion of nearly Rs 8,609 crore in three sessions as profit-taking, valuation worries and broader caution in new-age listings weighed on sentiment.
Should you buy, sell or hold PhysicsWallah shares?
Shivani Nyati, Head of Wealth at Swastika Investmart, attributed the strong debut to investor faith in PhysicsWallah’s “strong brand recall, affordable test-prep offerings, and its fast-growing hybrid model through both online platforms and PW Pathshala centers.”
Nyati added that the company benefits from a “loyal student base, scalable digital content engine, expanding offline footprint, and diversified presence across JEE, NEET, UPSC, and state-level exams.”
But she warned that competition from bigger edtech and coaching players, regulatory uncertainties, and profitability challenges are “key risks.”
As for strategy, Nyati noted that the IPO drew healthy retail participation on the back of hybrid learning demand and said, “Allottees may book partial profits and hold the remaining shares for medium-term growth with SL at Rs 130.”
PhysicsWallah IPO snapshot
PhysicsWallah’s Rs 3,481 crore IPO was among the largest from India’s edtech sector. The issue comprised a Rs 3,100.71 crore fresh issue and a Rs 380 crore offer for sale. The public offer was subscribed 1.92 times, led by robust demand from qualified institutional buyers at 2.86 times.
Retail investors subscribed 1.14 times, while non-institutional participation was muted at 0.51 times. Employee bidding was strong at 3.71 times, supported by a Rs 10 discount.
The company raised Rs 1,563 crore from anchor investors on November 10, signaling institutional confidence. The 14.33 crore-share anchor book is locked in until mid-December and mid-February, depending on tranche.
PhysicsWallah's financials
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah has grown from a single YouTube channel into a major edtech force with 13.7 million subscribers, 4.46 million paid users, and 303 physical centers as of June 2025.
The company reported a 51% jump in FY25 revenue to Rs 3,039 crore and a net profit of Rs 243 crore, reversing a Rs 1,131 crore loss in FY24. EBITDA margin stood at 6.7%. Still, cumulative losses remain, and the company posted a Rs 127 crore loss in Q1 FY26.
IPO proceeds will be directed toward offline expansion, lease commitments, technology upgrades, cloud capacity, infrastructure, marketing and acquisitions.
While the stock’s sharp slide has shaken early investors, PhysicsWallah still trades comfortably above its IPO price, suggesting the growth narrative remains intact even as near-term volatility intensifies.