PhysicsWallah Faces Market Turbulence: Shares Down 40% From Listing Highs
- Editor
- February 27, 2026
- Business, Career, Education, Global Business
- 0 Comments
MUMBAI / NEW DELHI – February 27, 2026 – PhysicsWallah (PWL), the edtech unicorn that made a sensational debut on the Indian stock exchanges in late 2025, is now facing a grueling test of investor patience. After an initial “blockbuster” listing, the stock has corrected sharply, losing approximately 40% of its value from its post-listing peak.
The Listing Euphoria and Subsequent Slide
PhysicsWallah launched its ₹3,480 crore IPO in November 2025 with an issue price of ₹109. On its debut day (November 18, 2025), the stock defied modest grey market expectations, listing at a 33% premium (₹145) on the NSE and surging as high as ₹162.05 during intraday trade.
However, the euphoria was short-lived. In the months following the listing, the stock entered a steady downward spiral. By late February 2026, the share price has dipped to around ₹86–₹90, representing:
- A 40%+ decline from its all-time high of ₹162.
- A 20% drop below its original IPO issue price of ₹109.
- The erosion of over ₹12,000 crore in market capitalization since its peak.
Key Market Challenges
Analysts point to several factors contributing to the “selling pressure” on the edtech giant:
- Valuation Concerns: While PW remains one of the few profitable edtech firms in India, investors have grown cautious about its high valuation relative to its earnings stability. The stock is currently trading at over 18 times its book value.
- Shift to Offline (Hybrid) Model: PhysicsWallah has been aggressively expanding its “PW Pathshala” centers. While this drives revenue growth, it is a capital-intensive model with lower margins compared to pure digital offerings, leading to concerns over long-term profitability.
- Regulatory & Competitive Risks: The coaching industry in India is facing increased regulatory scrutiny regarding student welfare and advertising. Additionally, intense competition from legacy players (like Allen and Aakash) and other edtech rivals continues to squeeze market share.
- Quarterly Volatility: Despite a profitable FY25, the company reported a net loss of ₹127 crore in Q1 FY26, which spooked institutional investors who were expecting a more linear growth trajectory.
Expert Outlook: Buy, Sell, or Hold?
Despite the slide, some brokerages remain optimistic. JM Financial recently initiated coverage with a “Buy” rating and a target price of ₹110, suggesting that the company is still in the early stages of its monetization curve and its success in IIT/NEET verticals remains a strong moat.
Conversely, technical analysts warn of a “decisively bearish” structure. Many recommend a “sell-on-rallies” strategy until the stock manages to reclaim key resistance levels above ₹100.
Company Profile
Founded by Alakh Pandey and Prateek Boob, PhysicsWallah transitioned from a popular YouTube channel into a full-stack edtech platform. As of mid-2025, the company boasted over 13.7 million subscribers and 303 offline/hybrid centers across India. The proceeds from its IPO are being used for further offline expansion, technology upgrades, and potential acquisitions.
