5 Things to Know Before Investing in the IPO of Physics Wallah

Investor confidence in initial public offerings (IPOs) has increased as a result of India's strong economic growth.

A favourable climate for IPO investments has been established by strong domestic liquidity from mutual funds, insurance providers, and individual investors.

Numerous IPOs in 2025 have produced listing gains, with many debuting at prices well above the issue price.

And we have another IPO set to open shortly. It is from edtech company Physics Wallah.

About Physics Wallah

Physics Wallah is an Indian edtech company founded by Alakh Pandey in 2016, originally as a YouTube channel focused on teaching physics for competitive exams like JEE and NEET.

The company is headquartered in Noida and aims to democratise education by providing affordable and accessible quality learning through online, offline, and hybrid platforms in multiple languages.

It offers courses across various competitive exams, higher education, skilling programs, and an Institute of innovation for job-ready residential programs.

What Makes This IPO Stand Out?

• Solid User Base: Physics Wallah had a paid user base of approximately 4.46 million (m) in FY25, marking a significant growth from 1.76 m paid users in FY23.
• Diverse Revenue Streams: The company earns through multiple avenues including online courses, offline centers, skilling programs, and subscriptions, reducing dependence on any single segment.
• Use of Proceeds for Expansion: The IPO proceeds are earmarked for aggressive expansion of offline centers, technology upgrades, and acquisitions, reflecting a clear growth plan enhancing investor confidence.
• Affordable Education Model: Unlike many premium edtech companies, Physics Wallah focuses on affordable education for a wider audience, including tier 2 and 3 cities, using a hybrid approach (online, offline, and hybrid learning centers), which differentiates it in terms of accessibility and market reach.
• Market Position and Growth: Physics Wallah is India's largest revenue-generating edtech company with a strong foothold in the affordable and hybrid education space.

Key Details of the Physics Wallah IPO

• IPO Open Date: 11 November 2025
• IPO Closing Date: 13 November 2025?
• Price Band: Rs 103 - Rs 109 per share.?
• Lot Size: 137 shares per lot; minimum investment is Rs 14,933 at the upper band for retail investors.?
• Issue Breakdown: Fresh issue of Rs 31 bn, Offer for Sale (OFS) of Rs 3.8 bn.
• Listing Date: 18 November 2025 on BSE and NSE.?
• Allotment & Refunds: Allotment finalisation on 14 November 2025; refunds and demat credit expected on 17 Nov 2025.

A Look at the Financials

Physics Wallah achieved revenue growth in FY25, of nearly 50% while significantly reducing losses by around 78%.

The company became EBITDA positive for the first time, with improved operational efficiency. Expansion in offline centers and paid user base drove this growth, alongside increased employee strength to support scaling across various education segments.

However, the company needs to deliver net profits in the years to come.

Risk Factors

The key risk factors for Physics Wallah IPO include:

• Company reporting losses: Physics Wallah has posted significant losses in recent years. While the losses have narrowed, the company is yet to make to profits at the net level.
• Regulatory risks: Increasing government regulations such as the Guidelines for Regulation of Coaching Centres and state-specific rules could lead to compliance burdens or operational restrictions.
• Intellectual property (IP) risks: Study material could be challenged or plagiarised.
• Competition is intense: If competition intensifies, costs may increase, margins may shrink.
• Faculty/talent attrition and quality risk: Large pool of faculty, but attrition remains high in a business where teaching quality is a key differentiator.
• Safety Risks: Failure to ensure student safety or manage adverse incidents may lead to reputational damage, legal claims, or regulatory scrutiny.

Should You Consider Physics Wallah IPO?

Physics Wallah is a strong player in the edtech space with good growth prospects. The IPO offers opportunity for investors to gain exposure to the evolving edtech space but entails risks typical of growth-stage edtech companies.

The other risks include the company's prior losses and competition intensity. Investors should consider all these factors carefully before participating in the IPO.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...