PhysicsWallah Stock Falls 15% as Rs.12,000 Crore Gets Wiped Off Market Cap in Three Days

PhysicsWallah Share Price Slides 15% as Sharp Sell-Off Erases ₹12,000 Crore in Market Value

The PhysicsWallah share price witnessed another steep decline on November 20, extending its post-listing correction for the second consecutive trading session. After a strong debut earlier this week, the edtech company’s stock has now fallen more than 16 percent from its listing price across the first three sessions, indicating significant investor profit-booking and rising concerns over valuation.

Despite the heavy sell-off, the PhysicsWallah share price remains over 11 percent higher than its IPO price of ₹109 apiece. However, the rapid shift in sentiment from euphoria to caution has surprised many market participants who were expecting sustained momentum given the company’s scale and reputation in the education sector.

Market-Cap Erosion Deepens as Investors Pull Back

The declining PhysicsWallah share price has dragged the company’s market capitalization below the ₹35,000 crore mark, marking a sharp drop from its debut-day peak of nearly ₹46,300 crore.

This steep fall represents an erosion of approximately ₹12,000 crore in just three trading sessions — one of the fastest value corrections seen in a newly listed tech company in recent months.

Market analysts believe that this wipe-out reflects not only profit-booking after a stellar debut but also rising apprehension regarding long-term profitability, heightened competition in the edtech space, and muted investor risk appetite amid broader market volatility.

Also Read : Excelsoft Tech IPO Subscribed 3x on Day 2, NII 6x as GMP Signals a Decent Listing

A Strong Market Debut Followed by Quick Losses

The PhysicsWallah share price began its market journey with optimism on November 18, listing at ₹145 apiece on the NSE — a premium of over 33 percent to the issue price. The stock continued its upward trajectory throughout the debut session, closing sharply higher at ₹156.49, translating into a 44 percent jump over the IPO price.

However, the rally was short-lived.

On Day 2, the stock slid nearly 11 percent, hitting an intraday low of ₹138.54 before staging a mild recovery. It eventually closed the session nearly 8 percent lower at ₹143.28.

The selling pressure intensified on Day 3, with the PhysicsWallah share price plunging more than 15 percent and trading around ₹121.22 apiece, signalling a shift from bullish trading momentum to cautious sentiment among investors.

Analysts Advise Caution as Valuation Concerns Rise

With multiple headwinds emerging, analysts are urging investors to reassess their positions in the stock.

Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted that competition from rival edtech platforms and offline coaching giants continues to be a major challenge for PhysicsWallah. She added that regulatory uncertainties and the difficulty of maintaining profitability while scaling operations further complicate the company’s growth trajectory.

Nyati recommended that investors who received allotments during the IPO may consider booking partial profits while keeping a stop loss at ₹130 for the remaining holdings.

Supporting this broader view, Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara, cautioned that the company’s valuations already reflect heavy optimism. The real challenge, he noted, lies in converting millions of free users into paying subscribers while efficiently managing operating costs.

He added, “If PhysicsWallah proves that regional expansion and hybrid coaching models can generate stable margins, then the company can build long-term credibility. But execution risks remain high at these valuations.”

Shravan Shetty, Managing Director at Primus Partners, echoed similar concerns, noting that while PhysicsWallah has significant potential due to its brand strength and user scale, the hybrid coaching model expands slower compared to pure digital platforms. He warned that retaining top teaching talent and maintaining aggressive growth targets will be critical to delivering mid- to long-term shareholder returns.

Company Background: From YouTube Channel to Edtech Giant

Founded in 2016 as a YouTube channel by educator Alakh Pandey, PhysicsWallah has grown rapidly into one of India’s largest edtech companies, offering both online learning and offline coaching centres across multiple states.

In FY25, the company recorded a 49 percent rise in revenue, demonstrating strong demand for its hybrid learning model. Importantly, it managed to reduce its losses to ₹243 crore, a significant improvement from previous fiscal losses — though still sizable in comparison to its peers.

Even after the recent correction in the PhysicsWallah share price, the company commands a higher valuation than several established rivals. Its market cap surpasses Temasek-backed upGrad (valued at $2.25 billion) and SoftBank-backed Unacademy (valued at $3.44 billion), highlighting the premium investors have assigned to its future growth potential.

Outlook: Should Investors Buy, Sell or Hold PhysicsWallah Shares?

As the PhysicsWallah share price continues to face pressure, market experts remain divided on the immediate outlook. While some see the correction as a natural settling process after a euphoric listing, others warn that the stock may remain volatile until the company demonstrates sustained profitability.

The prevailing guidance from analysts leans toward caution. Investors already holding the stock may consider trimming their exposure while monitoring key operational milestones such as subscriber conversions, offline centre expansion, and margin trends.

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