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PhysicsWallah IPO: Edtech major PhysicsWallah is set to launch its Rs 3,480-crore initial public offering (IPO) tomorrow, Tuesday, November 11. The price band has been fixed in the range of Rs 103-Rs 109 apiece. Ahead of the IPO, analysts at brokerage firms have shared their recommendations, with most giving a ‘subscribe’ rating while several granted a ‘neutral’ rating to the IPO. Global investment firm Think Investments has invested a little over Rs 136 crore in edtech unicorn PhysicsWallah as part of a pre-IPO funding round. However, the grey market premium (GMP), which indicates IPO’s demand among investors, remains subdued at 2.75%. PhysicsWallah IPO: Key Dates The IPO will open on Tuesday, November 11, and conclude on November 13. Its share allotment will be finalised on Friday, November 14, and the market listing will take place on November 18 on both the BSE and the NSE. PhysicsWallah IPO: Should You Apply? Brokerages have expressed mixed views on the much-awaited PhysicsWallah (PW) IPO, with some recommending a cautious approach while others see long-term value in the edtech firm’s growth story. SBI Securities maintained a ‘Neutral’ stance, saying it would prefer to monitor the company’s performance post listing. The brokerage noted that PhysicsWallah, which offers test-preparation and upskilling courses, ranks among India’s top five edtech companies by revenue. However, it pointed out that the company’s net loss widened from Rs 81 crore in FY23 to Rs 216 crore in FY25, driven by higher depreciation and impairment losses on financial assets. “At the upper price band of Rs 109, the issue is valued at an EV/Sales multiple of 9.7x based on the post-issue capital, which seems fairly valued,” SBI Securities said. Angel One also assigned a ‘Neutral’ rating, highlighting that PhysicsWallah’s financials cannot be assessed on a P/E basis since it remains a loss-making company with no listed peers in India’s edtech space. “While the company continues to deliver strong revenue growth and enjoys high brand recall, profitability remains constrained by rising competition and elevated scaling costs. Hence, we recommend investors to wait for clearer earnings visibility before taking a long-term position,” it said. Angel One further noted that at the upper end of the price band, PW trades at a premium to traditional education players such as MT Educare and CL Educate, a valuation justified only if the company sustains growth of over 25-30% CAGR in the next three years. “The listing will test whether India’s edtech can transform from valuation-driven exuberance to long-term, profit-backed credibility,” added Harshal Dasani, Business Head at INVasset PMS. In contrast, Incred Equities recommended subscribing to the IPO, stating that PhysicsWallah is “reshaping the industry’s economics”. The brokerage said, “At the upper end of the price band, the IPO is valued at an EV/Sales multiple of 10.7x (based on post-issue capital). This appears demanding, but when placed in the broader context of India’s listed new-age peers, the valuation is broadly in line.” It compared PW’s valuation to other digital-first players such as PB Fintech (14.4x), Nykaa (8.5x), and Eternal (14.6x), arguing that the market continues to assign premium valuations to scalable, asset-light tech platforms. “The company’s ability to blend online scalability with physical reach gives it an advantage over pure-play digital models. As offline centres mature and yield stable cash flows, and as employee and professional costs stabilise, we expect steady improvement in operating profitability,” Incred Equities added. SMIFS also issued a bullish view, calling PhysicsWallah “one of India’s top five education companies by revenue” and “the fastest-growing player in the segment”. The brokerage highlighted that PW’s paid user base grew at a 59.2% CAGR between FY23 and FY25, reaching 4.46 million users, supported by a vast digital ecosystem of 207 YouTube channels with nearly 99 million subscribers. SMIFS noted that about 93% of PW’s paid users are online, while its offline reach continues to expand through 303 centres in Q1FY26, up from 198 in FY25, with plans to reach 500 centres within three years. The brokerage said operational efficiency has improved significantly, with centre breakeven time reducing from 24 months in FY24 to 12 months expected in FY26. Strategic acquisitions such as Xylem (South India), Utkarsh Classes (government exams), Knowledge Planet (Middle East), and Guiding Light (Sarrthi IAS) have helped PW diversify regionally and across categories. SMIFS said it remains optimistic about PhysicsWallah’s “integrated tech ecosystem” powered by innovations such as AI Guru, Smart Doubt Engine, and AI Grader, along with a 6,267-member faculty team and a 548-member tech division. “We recommend subscribing to the issue as a good long-term opportunity, backed by PW’s deep regional presence, accelerating paid user growth, rapid offline scale-up, strong digital and content ecosystem, and strategic diversification,” SMIFS said, adding that the company has the potential to become “India’s largest education company within the next four to five years.”
