PhysicsWallah Shares Surge After Positive Q1 FY27 Results
PhysicsWallah shares saw significant growth on Monday as two brokerages expressed increased optimism about the edtech firm following its Q1 FY27 results. The stock jumped by 9.6% to Rs 128.35 on the BSE as JPMorgan and JM Financial both upgraded their outlooks for the company.
JPMorgan raised its rating for PhysicsWallah from ‘Neutral’ to ‘Overweight’, while maintaining its target price at Rs 148. The brokerage noted that the first-quarter performance surpassed expectations, even amidst disruptions related to NEET, and highlighted the company’s guidance of 30% revenue growth for FY27.
JM Financial also increased its rating from ‘Add’ to ‘Buy’ and kept its target price at Rs 140. The firm pointed to improving fundamentals and a more attractive risk-reward scenario following a recent correction in the stock’s price.
In Q1 FY27, PhysicsWallah’s operating revenue climbed 24.4% year-on-year to Rs 1,054 crore from Rs 847.1 crore recorded in the same period last year. The company’s net loss was reduced by 30.5% to Rs 88.3 crore. Furthermore, EBITDA turned positive at Rs 52 crore, recovering from an EBITDA loss of Rs 21 crore in Q1 FY26. Adjusted EBITDA soared more than fivefold to reach Rs 135 crore, with the adjusted EBITDA margin enhancing to 12.9% from 3.1%.
The online segment remained the primary growth factor for the company, with revenues increasing by 33% year-on-year to Rs 549 crore. Revenue from K-12 and early-learning sectors also witnessed substantial growth, rising by 88% to Rs 105 crore.
Recently, PhysicsWallah announced a Rs 71.8 crore investment in the UPSC coaching platform Sarrthi IAS, elevating its stake from 40% to 51%, thereby transforming the platform into a subsidiary. This acquisition is anticipated to enhance its foothold in the UPSC and civil services examination preparation market as it broadens its scope beyond the core K-12 and test preparation services.
As of 2:13 PM today, PhysicsWallah’s shares are trading at approximately Rs 123.83, reflecting a total market capitalisation of Rs 35,919 crore ($3.78 billion).