PhysicsWallah’s share price took a sharp hit on November 20, sliding more than 15 percent and continuing the strong wave of selling for a second straight session. The stock has now fallen over 16 percent from its listing level within just three days of market debut.
Even after this steep pullback, the company’s shares still remain over 11 percent higher than the IPO issue price of Rs 109 per share.
Sharp decline in market capitalization triggered by sustained selling:
PhysicsWallah’s market cap has dropped sharply, sliding to under Rs 35,000 crore as of today. This marks a major pullback from its debut-day peak, when the company briefly touched a valuation of around Rs 46,300 crore.
In total, nearly Rs 12,000 crore in market value has been erased within just three trading sessions of its listing.
PhysicsWallah’s market debut and early performance:
PhysicsWallah made a strong entrance on the stock market, listing at Rs 145 per share on the NSE on November 18 more than 33 percent above its IPO issue price. The momentum continued through the first trading session, with the stock ending the day at Rs 156.49, giving investors a gain of nearly 44 percent over the IPO price.
The rally didn’t last long. On the second day of trade, selling pressure pulled the stock down sharply. It slid close to 11 percent during intraday trading, touching a low of Rs 138.54 before recovering part of the fall. By the closing bell, the price had settled at Rs 143.28, about 8 percent lower than the previous close.
The downtrend has deepened on Day 3 as well. The shares have continued to decline, dropping more than 15 percent to around Rs 121.22 in early trade.
PhysicsWallah Share Price: Buy, Sell or Hold? What Investors Should Know
Swastika Investmart’s Head of Wealth, Shivani Nyati, highlighted that PhysicsWallah faces several industry challenges despite its strong brand presence. She pointed out that rising competition from other edtech platforms and established offline coaching institutes, along with regulatory uncertainties in the education sector, could affect the company’s long-term growth. Nyati also mentioned that maintaining profitability during aggressive expansion phases remains a major risk.
Given the current scenario, she suggested that investors who received allocations in the IPO could consider booking partial profits, while holding the remaining stake for medium-term gains with a stop-loss level near Rs 130 per share.
Siddharth Maurya, Founder and Managing Director at Vibhavangal Anukulakara, also urged investors to be cautious. He believes that the company’s biggest challenge now lies in turning its large base of free users into paying customers, especially at the present valuations. According to him, PhysicsWallah will earn stronger long-term credibility only if it can show that its regional expansion strategy and hybrid learning model can consistently deliver healthy margins.
Shravan Shetty, Managing Director at Primus Partners, noted that PhysicsWallah certainly holds strong long-term potential due to the scale it can achieve. However, he pointed out that the company also faces major hurdles, including tough competition from players like Unacademy and Byju’s, along with the slower growth pace of its hybrid coaching model compared with pure digital platforms. According to Shetty, the company’s stretched valuation means that consistent execution, rapid expansion, and the ability to retain top teaching talent will be essential for delivering meaningful returns over the medium to long term.
PhysicsWallah began as a YouTube channel in 2016 and has since evolved into a major education brand with both online and offline coaching centres. It now stands among India’s biggest edtech companies in terms of student reach. In FY25, the firm reported a 49 percent rise in revenue, while its losses narrowed to Rs 243 crore, significantly lower than the previous year’s loss of Rs 1,131 crore.
At its current valuation, PhysicsWallah is now valued higher than some of its unlisted competitors. This includes Temasek-backed upGrad, last valued at $2.25 billion, and SoftBank-backed Unacademy, which carried a valuation of around $3.44 billion.
Disclaimer: The opinions and investment suggestions mentioned above are those of the quoted experts and do not represent the views of this website or its management. Readers are advised to consult certified financial professionals before making any investment decisions.