The share price of online EdTech platform PhysicsWallah (PW) jumped nearly 10% in intraday trade today after the education technology company reported an improvement in its first-quarter performance (Q1FY27). The stock climbed 9.6% to Rs 128.37 to hit an intraday high.
But the recently listed stock has another reason to remain in focus. Prime Minister Narendra Modi’s Independence Day speech brought online education and competitive-exam preparation back into the spotlight.
Is PhysicsWallah getting a double boost – improving financials and a potentially larger role for online coaching? Let’s take a look –
PhysicsWallah’s losses narrow
PhysicsWallah reported a consolidated net loss of Rs 88 crore in Q1FY27, compared with a loss of Rs 120 crore in the same quarter last year.
Revenue from operations rose 24% year-on-year to Rs 1,054 crore. More importantly, the company reported positive Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Rs 52 crore.
Its EBITDA margin improved to 4.9%, an improvement of 743 basis points from the year-ago period.
| Metric | Q1 FY27 | Q1 FY26 |
| Revenue from operations | Rs 1,054 crore | Rs 851 crore |
| Consolidated net loss | Rs 88 crore | Rs 120 crore |
| EBITDA margin | 4.90% | -2.50% |
The improvement was not entirely uniform, though. The offline business was affected by the timing of the National Eligibility cum Entrance Test (NEET) re-examination.
Why did JM Financial turn bullish?
The brokerage house JM Financial upgraded PhysicsWallah to ‘Buy’, while retaining its June 2027 target price of Rs 140. From the stock’s recent levels, this implies nearly 20% upside.
JM Financial addedZxc, “PW had a decent Q1FY27 despite pushout of some revenues due to re-conduct of the NEET exam.”
The online business remained the main growth driver. It grew 33.2% year-on-year, supported by K-12, early learning, vernacular content and newer categories.
JM Financial said, “Online business (+33.2% YoY) remained the key growth engine.”
The offline business grew 14.5%. However, the brokerage believes the reported number understates the underlying growth because of the NEET timing shift.
Adjusted for this impact, revenue growth could have been around 20%-25%, according to the report.
What happens to profitability from here?
PhysicsWallah’s management has retained its FY27 revenue growth guidance of around 30%. It also expects pre-Indian Accounting Standards (Ind AS) EBITDA to double.
JM Financial has raised its consolidated pre-Ind AS EBITDA estimates by 7%-9% for FY27-29. Adjusted Profit After Tax (PAT) estimates have also been raised by 4%-12%.
The brokerage said, “The Q1FY27 performance strengthens our confidence in PW’s earnings trajectory.”
There is another development investors may be watching. PhysicsWallah has announced the divestment of FinZ, its education-loan business.
As per the brokerage house report, the move could address earlier concerns around capital allocation.
The brokerage added, “With the underlying business fundamentals intact and the stock correcting >20% from recent highs, we believe the risk-reward is once again favourable.”
Why PM Modi’s free online coaching announcement matters
PhysicsWallah has also come into focus after Prime Minister Narendra Modi announced free online coaching for competitive examinations during his Independence Day speech.
Modi said coaching classes had become a financial burden for middle-class families and announced plans to provide free online coaching through digital infrastructure.
“We have digital public infrastructure, and we have highly talented teachers and educators,” Modi said.
The announcement does not directly change PhysicsWallah’s financial outlook. But it puts online education and affordable digital coaching under the spotlight.
For investors, the bigger question is whether the company’s improving online business can continue translating into better profitability.
What investors should need to watch
For PhysicsWallah, the immediate focus will be on whether online growth remains strong, offline growth normalises after the NEET disruption and profitability continues to improve.
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.