PhysicsWallah’s stock market debut on Tuesday turned out to be significantly stronger than expected, delivering far better listing gains than what the grey market had predicted. The edtech company’s IPO, which was subscribed nearly 2 times between November 11–13, attracted considerable investor interest despite concerns around profitability.

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Listing Performance on NSE and BSE Analysts Highlight Strong Revenue Growth but Ongoing Losses Should Investors Buy, Sell, or Hold?

The stock listed at a 33% premium on the NSE, marking a solid start for the company as it stepped onto the public market.

Listing Performance on NSE and BSE

On the National Stock Exchange (NSE), PhysicsWallah shares were listed at ₹145 per share, recording a 33.03% premium over its IPO price band of ₹103–109 per share. Market watchers noted that this strong debut outpaced grey market expectations, which had indicated potential listing gains of about 13 percent.

On the Bombay Stock Exchange (BSE), the shares opened at ₹143.10 per share, reflecting a 31.28% premium. Following the listing, PhysicsWallah’s market capitalization stood at ₹40,922.20 crore, underscoring investor confidence during its market entry.

This debut positions PhysicsWallah as one of the few edtech companies to command such strong listing premiums at a time when the sector has faced challenges.

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Analysts Highlight Strong Revenue Growth but Ongoing Losses

Bhavik Joshi, Business Head at INVasset PMS, offered a detailed view on the company’s financial trajectory and outlook. He highlighted that the edtech firm has demonstrated sharp revenue growth, rising from ₹772 crore in FY23 to over ₹3,000 crore in FY25. This reflects robust expansion and increasing demand for its learning solutions.

However, Joshi also emphasized that the company continues to face profitability pressure, noting that PhysicsWallah recorded cumulative losses of over ₹1,400 crore between FY23 and FY25. These losses signal ongoing challenges in balancing rapid growth with stable margins.

According to him, the valuation and the loss profile make the IPO a long-term execution story. While the funds raised from the IPO will be allocated toward offline expansion, technology upgrades, and marketing efforts, Joshi believes the timeline for improving operations and reducing losses will be a key factor for future performance.

The company’s strong revenue growth is encouraging, but consistent profitability remains the critical milestone investors will watch closely.

Should Investors Buy, Sell, or Hold?

Investor sentiment appears divided, with analysts calling for a cautious and selective approach. Joshi suggested that investors with a higher risk appetite and a long-term investment horizon may consider limited participation in the stock. These investors may choose to stay invested, anticipating improved performance as the business scales and operational efficiencies kick in.

On the other hand, more conservative investors may prefer to wait. Given the company’s significant losses over recent years, some investors may choose to observe its operational performance for a few more quarters before making a decision.

Overall, analysts believe a long-term hold strategy with partial profit booking may work for investors who participated in the IPO and benefited from the strong listing gains.

Market experts have indicated that PhysicsWallah’s journey as a listed entity will depend heavily on its ability to balance growth with profitability.

A Milestone for the Edtech Sector

The listing of PhysicsWallah marks a notable milestone as it becomes the first major pure-play edtech company to list on Indian stock exchanges. This debut not only reflects investor interest in the company’s growth story but also brings attention to the broader edtech landscape.

While the sector has seen varied performance in recent years, PhysicsWallah’s successful market entry could set a benchmark for upcoming players exploring the public route.

Disclaimer

The views and investment advice quoted in this article are those of the experts mentioned. Investors should always consult certified professionals before making investment decisions.

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