Indian Edtech upstart PhysicsWallah, made a strong debut on the public markets on Tuesday, despite initial hesitations on the company’s overall financial health. The company’s shares listed at a substantial premium over the issue price of ₹109 per share. On the National Stock Exchange of India (NSE), the stock opened at ₹145 (reflecting a premium of about 33%), while on the Bombay Stock Exchange (BSE), the opening was at ₹143.10. The company raised around ₹3,480.7 crore through the IPO, which was moderately oversubscribed overall, with the highest demand coming from Qualified Institutional Buyers (QIB). The successful listing is noteworthy for the country’s edtech sector, which has recently faced intense scrutiny.
The initial momentum carried through the trading day, and at one point, shares touched an intraday high of ₹161.99 on the BSE, representing nearly a 49% jump over the IPO price. The stock ultimately settled around ₹156.49 on the NSE by the close of trading, marking an about 44% gain from the issue price.
According to the edtech firm, the IPO proceeds are primarily reserved for scaling the company’s hybrid model of online and offline education. Particularly, about ₹460 crore from the IPO proceeds will go towards setting up new offline centres, while ₹548 crore is committed for lease payments of existing facilities. Around ₹200 crore is planned for technology and infrastructure upgrades (including cloud and server capacity), ₹710 crore for marketing and brand-building, and ₹26.5 crore to increase the stake in its subsidiary (like Utkarsh Classes & Edutech).
However, financial filings show that while the company is growing rapidly, losses are also widening. For example, between FY23 and FY25, revenue surged from around ₹772 crore to around ₹2,887-3,000 crore (a CAGR of about 90–97%). At the same time, adjusted EBITDA improved to about ₹432 crore in FY25, but net losses increased to about ₹243 crore from ₹84 crore in FY23.
On one hand, PhysicsWallah’s strong debut reflects its core strengths, including brand recognition, affordable test-prep offerings, and the successful execution of its hybrid delivery model. But despite all this, the listing does not eliminate the significant underlying risks. Clearly, there are concerns about several challenges facing PhysicsWallah (PW). The company continues to operate at a net loss, and the high fixed costs from expanding its physical centers add further pressure. Its performance heavily depends on maintaining strong student enrollments and retaining key faculty members in a competitive education market. Even the broader edtech sector remains exposed to regulatory uncertainties and intense competition from both well-funded rivals and established regional coaching providers. In parallel, last month (October 2025), several former employees accused the company of breaching contracts, delaying or reducing salaries, and pressuring staff to mislead students about registration fees.
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