Physicswallah Stock Performance Analyzed

Physicswallah, the popular online test preparation company, is experiencing a significant drop in its stock value. The stock price fell by 5.38% to reach Rs 127.60, marking its fourth consecutive day of decline. This downward trend has led to a total correction of 17.78% over the last four trading sessions.

Key Points

• Stock dropped 5.38%, fourth consecutive decline observed.
• Total correction of 17.78% in the last four sessions.
• IPO debuted at Rs 143.10, a 31.28% premium.
• Subscription rates 1.81 times oversubscribed during IPO.
• Funds used for new centers, lease payments, and subsidiaries.
• Firm reported a consolidated net loss for Q2 2025.

The company’s initial public offering (IPO) occurred between November 11th and 13th, 2025, with a price range of Rs 103 to Rs 109. The IPO was highly successful, being subscribed 1.81 times. Founders Alakh Pandey and Prateek Boob also sold a substantial portion of their shares during the IPO, contributing Rs 190 crore at the highest price band.

The funds raised through the IPO (Rs 3,100 crore fresh issue plus Rs 380 crore offer for sale) are being strategically invested. Specifically, Rs 460.5 crore is earmarked for establishing new offline and hybrid learning centers, while Rs 548.3 crore will cover lease payments for existing facilities. Smaller allocations are also dedicated to subsidiaries like Xylem Learning and Utkarsh Classes & Edutech, alongside investments in server infrastructure, marketing, and potential acquisitions.

Prior to the IPO, Physicswallah secured an additional Rs 1,562.84 crore from 57 anchor investors. These investors were allotted 14.33 crore shares at a price of Rs 109 each. Physicswallah primarily offers test preparation courses for competitive exams like JEE, NEET, and UPSC, along with upskilling programs in areas such as analytics, finance, and software development.

The company delivers its content through online platforms and operates a network of 303 offline centers, supported by 6,267 faculty members. For the quarter ending June 2025, Physicswallah reported a consolidated net loss of Rs 127.01 crore, despite generating sales of Rs 847.09 crore.

“Despite initial success, the stock’s performance reflects investor concerns regarding the company’s profitability and future growth prospects.”