PhysicsWallah Shares Rise 6% After Broker Sets ₹200 Target
Indian edtech company PhysicsWallah saw its stock price jump up to 6% after brokerage firm Motilal Oswal initiated coverage with a 'Buy' rating and a target price of ₹200.
PhysicsWallah, an Indian edtech firm, experienced a significant surge in its stock price, climbing as much as 6% to an intraday high of ₹127.80 on the BSE. The increase followed brokerage firm Motilal Oswal's initiation of coverage on the company, assigning it a 'Buy' rating and a target price of ₹200.
The company's market capitalization reached $3.8 billion. Motilal Oswal highlighted PhysicsWallah's strengths, including its established large education community with over 100 million YouTube subscribers. The brokerage forecasts the company's revenue to grow at a compound annual growth rate (CAGR) of approximately 74% between FY23 and FY26.
According to the report, PhysicsWallah's YouTube-led model allows it to build a large funnel of prospective learners and acquire students at structurally lower costs. This supports the growth of paying users across its online, hybrid, and offline offerings. The brokerage anticipates online revenue to grow at a CAGR of 28% between FY26 and FY30, driven by expansion into new education categories and AI-led monetization.
The company reported for the first quarter of FY27 that operating revenue increased by 24.4% year-on-year to ₹1,054 crore, while its net loss narrowed by 30.5% to ₹88.3 crore. EBITDA turned positive at ₹52 crore. The company expects to achieve profitability at the group level in the third quarter of FY27.