Physics Wallah Stock Rises on Q1 Results, Analyst Upgrades
Edtech firm Physics Wallah saw its stock price surge following strong Q1 results and positive rating upgrades from JPMorgan and JM Financial, indicating increased investor confidence.
Physics Wallah, an education technology company, experienced a significant rise in its stock price, peaking at a 9.5% intraday gain on Thursday. The surge followed analyst upgrades from major financial institutions JPMorgan and JM Financial, reacting to the company's first-quarter financial results.
JPMorgan upgraded its rating on Physics Wallah to 'Overweight' from 'Neutral,' setting a price target of ₹148. JM Financial similarly raised its rating to 'Buy' from 'Add,' with a price target of ₹140. Both institutions cited the company's performance and future outlook as reasons for the upgrades.
The company reported a 24.4% year-over-year increase in operating revenue for Q1 FY27, reaching ₹1,054 crore. The net loss narrowed by 30.5% to ₹88.3 crore compared to the previous year. Physics Wallah also reported a positive EBITDA of ₹52 crore, a significant improvement from a loss in the same period last year.
Despite disruptions related to the NEET entrance exams impacting online collections by 28% in Q1, the company noted a rebound in July and August. CEO Prateek Maheshwari expressed confidence in achieving group-level profitability by Q3 FY27, which is typically the company's strongest quarter.
Physics Wallah also announced strategic moves, including the divestment of its NBFC arm, FinZ Finance, to concentrate on its core education business. The company also increased its stake in coaching institute Sarrthi IAS.